Professional Sports Teams - Economic Market Analysis Research Paper

Professional Sports Teams - Economic Market Analysis - Research Paper Example Football, Cricket, Basketball etc are some of the popular games which are used for business purposes at present. These sports activities are marketed throughout the world with the help of different sports clubs formed at different parts of the world. For example, in America, different basketball clubs are functioning whereas in India different cricket and football clubs are functioning for business purposes. In Britain, Spain, Italy like countries, world famous Football clubs are functioning for business purposes and Manchester United is one of the popular football clubs in Britain. This paper briefly analyses the market structure of Manchester United. In one respect the place is Old Trafford where home games are played, but Manchester United also plays at a range of other venues. And, of course its products are sold across the globe, through the club's website and a range of other sales media. Manchester United markets itself as a global brand. The club also engages in a range of jo int promotional activities, for example with the mobile phone company Vodafone. Manchester United books, shirts, programmes, keyrings and many other items are sold and promoted through its website. The club has positioned itself at the upmarket premier end of the market and, as a result, it tends to charge premium prices as evidenced by the high cost of a season ticket to watch home league games (Marketing mix (Price, Place, Promotion, Product), 2011) Manchester United is operating in a highly competitive sports market at present. It is difficult for any of the football clubs in the world to establish monopoly in the market because of the severe competition existing between different clubs. For example, Manchester United, Chelsea, Barcelona, Real Madrid, A.C. Milan etc are some of the prominent football clubs in the world which are engaged in severe competition to establish their supremacy over others. These clubs are always canvassing better players from other clubs in order to str engthen their team and to reduce the competition from other teams. Thus Football clubs like Manchester United is operating in a heavily contested global sports market at present. Apart from providing an excellent team for global football tournaments, Manchester United boosts its business prospects through other channels such as sale of shirts, and a range of memorabilia, television rights etc. It should be noted that Manchester United plays both home games and away games and they visit many other places for participating in different championships. They have a wide array of supporters both in England and in other parts of the world. They utilize their popularity for business purposes as other clubs do. Unlike many other business activities, establishing monopoly or oligopoly in sports market is extremely difficult. It is a fact that Microsoft enjoys monopoly in operating system market whereas OPEC enjoys oligopoly in the oil market. Because of the huge control in the market, these o rganizations can interfere and control the market more effectively than their competitors. They can increase or decrease the production and raise or lower the product price at any time they like. It is difficult for a sports club like Manchester United to enjoy such controls in the market (even though it is the richest football club in the world) because of the huge