Professional Sports Franchises

Introduction

Athletic organizations are perceived to be among the organizations that generates the most profit. However, in running these organizations management is faced with serious problems, ranging from the health of the athletes, to the collection of revenue.

Challenges

Professional athletic organizations generate their revenues from gate receipts, television contracts, and sponsorship deals. This is in addition to merchandising of their sportswear. However, the gate revenues have to be split among the participating athletic teams. Besides, the volume of the revenues is used in paying each major athletic event or tournament taking place in a ‘foreign’ ground. The gate revenues are also affected by the quality of the venue. Some sports stadia have lower carrying capacities and poor quality facilities and therefore the athletic organizations have no choice but to charge lower fees which again have to be divided among the participating teams (Foster, Greyser, & Walsh, 2006).

These organizations also suffer management problems especially in managing the financial structures of the organizations. Athletes always negotiate for high wages, compensation, as well as benefit packages which some of the athletic organizations cannot sustainably afford. Whenever these bargains are not properly concluded, the organizations suffer lack of real commitments from their athletes and some even opt to move on to other clubs. Sometimes, decision making processes pose great challenges in these organizations as coaches are sometimes not given the power to make decisions that are within their authority to allow them better manage the athletes (Barr, Hums, & Masteralexis, 2008).

Discipline among players is a major challenge faced by these organizations. Athletic organizations are affected by delineating lawsuits against their professional athletes and the organizations themselves; arrests of their athletes for criminal activities; violation of National Collegiate Athletic Association regulations by some athletes as well as deaths, among many others. The level of conduct of the athletes have been poor and this is associated with the multi-million dollar contracts that they sign with their clubs and other rich organizations, as well as the endorsement opportunities that they normally obtain after rising to star status. Some players use outlawed drugs to boost their performance and even fail drug tests and these amounts to the losses that they create to these organizations as they have to be banned for a significant part of their carriers. Thus, they bring down the reputation of the sports organizations they represent. They organizations therefore have to create defense mechanisms for defending their players and also use resources to rebuild their reputations (Barr, Hums, & Masteralexis, 2008).

According to the International Olympic Committee, professional sports organizations, athletic sports associations included suffer losses due injuries and illnesses to their players. Athletic organizations have been struggling to preserve the health of their athletes (International Olympic Committee, 2011).

Coping Strategies

Every athletic organization has a team physician who helps the athletes cope with their physical health problems; however, impossible situations are treated at the hospitals. Athletes are advised not to take any drug that has been banned by the athletic world sports association. Athletes are also tested against banned drugs and appropriate bans imposed on those found to be positive in order to instill discipline and help maintain the athletes’ health (National Athletic Trainers’ Association, 2011). According to Barr, Hums, & Masteralexis, (2008), there has been heightened scrutiny by the NCAA on the athletes drug use. NCAA investigates all positive drug test results from the professional athletes. League policies that give athletes the loophole to use performance-enhancing drugs are being investigated by the NCAA and other sports organizations for reviewing. To effectively manage players’ compensations and wages plus other benefits, most athletic organizations and associations are coming up with standard pay systems which take into considerations, the athlete’s performance as well as equitable compensations.

Conclusion

The challenges faced by these organizations are many and complex, however, the most serious challenges come from the athletes themselves. This implies that effective management of the athletes must start by managing and influencing change in athletes’ attitude towards healthy sportsmanship.

Reference List

Barr, C. A, Hums, M. A, & Masteralexis. L. P. (2008). Principles and practice of sport management, 3rd Ed. Massachusetts: Jones & Bartlett Learning LLC.

Foster, G., Greyser, S. A., & Walsh, B. (2006). The business of sports: Text and cases on strategy and management. Mason: Thomson/Southwestern

International Olympic Committee. (2011). IOC world conference on prevention of injury and illness in sport. Monaco: Publi Creations. Web.

National Athletic Trainers’ Association. (2011). Journal of athletic training,. Web.

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StudyCorgi. 2022. "Professional Sports Franchises." March 15, 2022. https://studycorgi.com/professional-sports-franchises/.

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