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The Business of Sports, 2nd Edition by Rosner

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CHAPTER SIX

Teams

INTRODUCTION

Hundreds of teams are competing in sports leagues throughout the United States, and thousands more are competing globally. Revenues generated by sports leagues can be divided into two very broad categories: (1) national (and global) revenues that are shared equally by all of the teams in the league and (2) local revenues generated by each individual team that are retained, in large part, by that individual team.

Like franchises in many other industries, professional sports franchises are typically granted an exclusive geographic territory by the league in which they play that is theirs to exploit. These home territories range from a 50-mile radius from the home city in the NHL to a 75-mile radius from the home ...

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