The National Football League (NFL) started in the 1920’s, and grew throughout the 1930’s to the 1960’s, where competition for the market was in high demand for professional football leagues. Enduring competition, led the NFL to initiate merger with the American Football League, one of its largest competitors in 1966. Four years later the merger was complete. The NFL continued to purchase other leagues, as well as teams from different leagues. This has allowed the NFL to become the highest in attendance at event, most popular sport, and the Super Bowl is the largest community sporting event watched. Today, the NFL is “considered the top professional football league in the world.” Having capital in billions, and loyal fans in millions, the National Football League has been able to form a monopoly in professional football throughout the years. The NFL is considered to have characteristics of an oligopoly market structure as well. Rather than being a monopoly, the …show more content…
Even though, the teams are their own organizations within the NFL, and can operate separate to the NFL, the NFL has used its power and resources to make certain decisions for all thirty-two teams. This includes contracts with sponsors, limiting coaches and football players salaries and enforcing a draft. This gives the NFL the opportunity to act as a price maker for merchandise, television air time, and salaries. The barriers of entry into this monopoly are significant. It would be impossible for another professional football league to operate in the United States, due to the billions of dollars the NFL has generated. If a league were to try, the NLF’s capital and strategic approaches would outperform the strategy and finances of another league seeking market