Single entity ownership is profiled by Stefan Fatsis of
the WALL STREET JOURNAL. Current single entities include
the ABL, WNBA, MLS and startups such as the IBL, All
American Football League and National Volleyball League.
Fatsis: "In an industry littered with dozens of failures
since the 1970s, these start-ups hope central ownership will
help them dodge the problems that have plagued their
predecessors, from ego-driven owners and huge salaries to
wide gaps between big-and-small market teams." IBL partner
Paul Martha: "People are trying to structure new leagues in
a way that they can create and maintain business control."
Fatsis adds that while league execs "say the single entity
is the key to survival," player reps believe "its primary
purpose is to hold down salaries." MLS is being sued by ten
players who say the league's structure violates antitrust
laws, while agents for WNBA players "are already complaining
about pay" (WALL STREET JOURNAL, 7/15).
DETAILS: Fatsis: "The question at the heart of the
soccer lawsuit is whether the league meets the legal
requirements of a single entity. While most of the
operations are collective ... others are not. ... Not all
revenue is shared. Local operators keep half of ticket,
local TV and local sponsorship revenue to as much as $1.2
million. ... Critics say that may be enough to disqualify
the league as a single entity." MLS Commissioner Doug Logan
says that increasing salaries now "would undermine the long-
term business plan" of the league. A trial "isn't expected
before" fall of '98 (WALL STREET JOURNAL, 7/15).
