from the English Premiership Soccer League to NHL Hockey pro sports has become a mega billion dollar industry all over the world with different leagues and world events bringing in billions of dollars in the aggregate for professional sports.
The business model for sports is unique because it taps into the emotions of the consumers and benefits tremendously from man's competitive and conquering, and winning spirit. The business model also fools/tricks the consumer into a false sense of identity of ownership. Truth is fans do not own anything in this business.
It is probably the only business model were a consumer actually contributes to the production of a product/franchise that he dislikes (example would be a Boston fan paying to attend and watch the Celtics play Miami in Miami) or a Boston fan buying a LeBron James jersey for his friend or child that adores James. Such is the world of pro sports that we do end up being part of the production. When you watch a sports event on TV see how much you enjoy the game with the sound turned off and the crowd edited out. I doubt that you get the same pleasure from that.
The biggest secret to the tremendous success of the sports business model is that we the consumers do not see ourselves as consumers but as fans. Therefore we knowingly participate in the enterprise without compensation. The games are a big production that requires players, coaches, arenas, TV crew, officials, and other entertainment. Most of the money comes from TV. For the TV production to be successful you need a participating audience -- enter the fans in all their element from the crazy to the subdued, the camera captures those that fill the arena to complete the show -- the only problem here is every component of that show gets paid for their contribution very handsomely EXCEPT FOR THE FAN.
Not only does the fan not get paid, the fan actually PAYS for the privilege of participating. A hefty sum in some cases. Therein lies the 'scam'. Oh and there is more.
The fan also promotes the franchises by wearing their colors, and displaying there flags, names on cars and around their homes. The fan actually has to pay for the privilege of advertising the team by paying for jerseys, buying posters and flags etc.
Here is the solution -- teams should truly belong to the fans -- they should be public corporations so the fans can buy into the ownership. Teams should have to pay to use the names of Cities since the use of the name has economic value from the emotional investment it garners from the public.
An illustration into the emotional divide created by pro sports is the current Sterling/Clippers debacle where it is not clear if the players are playing for Sterling, themselves, the fans, or the City. If the players boycott are they really boycotting the errant owner or themselves and their fans? If the fans boycott are they really boycotting the owner or the players?
Truth is Sterling owns the team, the fans are just emotionally scammed by the illusion that it is the Los Angeles Clippers. I bet there would be no confusion if there were simply the Donald Sterling Clippers.
Are there any more suggestions that could help the fans/consumers a more participatory role in the mega billion industry of pro sports?