Essay, Research Paper

J.C.H. Jones & # 8217 ; s article & # 8220 ; The Economicss of the National Hockey League & # 8221 ; ( 1969 ) intent is to

explain through simple micro economic sciences that the premier motivation of professional hockey squad proprietors

is net income maximization. The proprietors argue that their chief involvement is & # 8220 ; for the love of the game, & # 8221 ; non the

fiscal benefits of having a professional athleticss franchise and to avoid authorities ordinances such

as the Combines Act ( note 1 ) .

An article written in 1982 by J.A. Schofield entitled & # 8220 ; The Development of First Class Cricket in

England, & # 8221 ; states the behaviour of athletics trusts. Three hypothesises are used to explicate the behaviour

described by Schofield, figure two being developed by J.C.H. Jones ( 1969 ) . ( 1 ) The net income

maximization hypothesis. ( 2 ) The joint net income maximization hypothesis that the full trust ( conference )

strives for. This hypothesis does non integrate non net income aims that influence group behaviour.

( 3 ) The public-service corporation maximization theoretical account that allow for many possibilities normally compromising statements

such as the success of the squad at a given twelvemonth and paid attending for the squad & # 8217 ; s locale.

By explicating the frame work of a professional athleticss conference Jones introduces us to factors that

do an organized conference map, which seems rather familiar to any other monopolistic markets.

Since no squad can make any gross by themselves they must organize a alliance with another nine to

bring forth a net income generating end product, viz. a hockey game. Other clubs enter this alliance therefore

making a formal conference which we call the National Hockey League. Jones so states how gross

is generated in the N.H.L and how it is affected by certain factors.

A theoretical theoretical account of the N.H.L is created by Jones with all things being equal, making an

equilibrium amongst all nines. The theoretical account is so adjusted to existent life variables that turns his

theoretical theoretical account into what we know as the N.H.L. Jone & # 8217 ; s variables includes the inducement for squads

to win ( this being the Stanely Cup ) , different quality of participants, the amateur bill of exchange ( a bill of exchange at the terminal

of the season which amateur participants a selected, last topographic point squad gets first choice and so forth ) , and

participant redistribution ( trades ) .

By using microtheory Jones clearly presents his statement which I was able to

und

erstand with my current cognition of microeconomics. Jones examines the gross side of an

single squad utilizing the usual variables gustatory sensations, monetary values, incomes, quality and replacements. On

the supply side Jones stresses that the major component is the human inputs viz. the hockey

participants. The information that Jones used was team statistics such as their concluding rank at the terminal of the season

and the paid attending as a per centum of upper limit seating capacity. By utilizing this information Jones is

able to set up tendencies that arise from season to season, therefore assisting him set up his statement on

net income maximization.

Jones article is meaningful at the minute because of the current labour differences amongst the participants

and the proprietors. & # 8220 ; The Economicss of the National Hockey League & # 8221 ; states what the N.H.L. should be

and besides indicates what is incorrect with its current position. The current issues pressing the N.H.L. such

as a salary cap, gross distribution, and league enlargement are all steps that the squad proprietors

are endeavoring for. By put ining these steps into the N.H.L. the equilibrium achieved in Jones & # 8217 ; s

theoretical theoretical account would be easier to accomplish therefore maximising the proprietor & # 8217 ; s net incomes. One variable that

Jones could non anticipate in 1969 is the hideous wages being paid to the participants and the

proposed salary cap from the proprietors. I believe that Jones & # 8217 ; s statement that proprietors motivations are

strictly geared towards net income maximizing would be stronger if the thought of a salary cap was present

so.

Jones concludes that the National Hockey League is net income driven and clearly posses monopolistic

qualities. Upon turn outing this through simple micro economic sciences the N.H.L. can fall under certain

authorities ordinances such as The Combines Act. Since this article was written in 1969 many

alterations have been made to the regulating organic structures that control the National Hockey League nevertheless

its maps can still be explained through micro economic sciences.

Mentions

1.The Combines Act. R.S. , C314 s.1, 1966

2. J.C.H. Jones, & # 8220 ; The Economicss of the National Hockey League & # 8221 ; , Canadian Journal of Economics,

vol 2 ( February 1969 ) , pp. 1-20

3. J.A. Schofield, & # 8220 ; The Development of First-Class Cricket in England: An Economic Analysis & # 8221 ; ,

The Journal of Industrial Economics, vol. 30, no.4 ( June 1982 ) , pp.337-360