The technological, cultural, and economic advances of the industrial revolution began the formalization and distribution of sports, leagues, and related commercial ventures (LaFeber 1999). Sports expenditures are distinct in their seeming immunity to economic fluctuations; for example, the Depression and recessionary periods in the past century did not slow them (Miller 1999). Throughout the past century sports in the United States became increasingly commercial and manifested formalized business functions, goals, and relationships (McAllister 1998; Miller 1998). Although gate revenues were the original form of revenue for professional sports, current sports organizations have widespread business interests, including a reliance on sponsorships, media and stadium contracts, apparel sales, and other sources of income (Mason 1999). Through formalization and commercialization exchange processes in sports have transformed from one-on-one games on the lawn, playground, or sandlot to an elaborate web of interests and induces economic rewards to athletes, coaches, team owners, media companies, and others (Irwin, Zwich, and Sutton 1999).
Sports are subject to legal analysis from a business perspective because of the economic role and structure that the sports industry has gained. The regulation of sports is difficult, however because of the basic nature of the game. Sports are a pervasive cultural event and conducted within the sports context is present at many levels: Players compete for places on a team, teams compete for players, leagues compete for team locations, etc. These features make the application of antitrust laws designed to support and preserve competition difficult.
The Sports Marketing Process.
Seven major participants in the sports marketing process are athletes/players, fans/spectators, teams, leagues, communities, media, and sponsors. Marketing exchanges occur among these participants and are subject to legal and economic influences that characterize the business nature of sports.