Negotiating TV/Radio Broadcast Rights
simulated season, student franchise owners have the opportunity
to flex their monopoly muscle. Being the sole provider of football
entertainment in the United States, the league has the ability
to extract monopoly rents from the television networks that
broadcast its games. What makes this exercise interesting is
that the owners must recognize their monopoly power. If they
negotiate as a group, they have they ability to work as a monopoly
league. If they negotiate their broadcast rights individually,
they will compete with one another for the networks' money.
Competition will cut into their collective profits.
regular season begins, students in the EconFantasy.com simulation
must decide how they will negotiate: as individual franchises
or as a collective group. This is actually one of the first
steps in Negotiating
The League Constitution (including revenue sharing arrangements).
In fact, this decision is often negotiated in conjunction with
the negotiation of revenue sharing arrangements.
to provide a multi-season experience in the EconFantasy.com
simulation, the networks will recalculate the broadcast rights
contract each week based on the competitiveness and popularity
of the league. Franchise owners may change their decision to
negotiate individually or collectively at any time during the