Closed leagues and open pyramids
Compare NFL and NBA franchise membership with promotion and relegation in the Premier League, Bundesliga and UEFA competitions.
This site examines the economy of sports in the United States and Europe: closed and open leagues, player labour, stadium funding, media rights and rules intended to restrain spending.
Five comparisons follow the money from league membership to broadcast distribution. The structures overlap, but they do not produce identical incentives.
A league is simultaneously a competition and a joint commercial product. That tension explains why rivals cooperate on schedules, rules and media sales while competing for players, supporters and trophies.
A protected franchise can plan around continuity. A relegation-exposed club must price the possibility that sporting failure changes its revenue base.
Drafts, free agency, transfer fees, revenue sharing and collective bargaining determine who can capture the value created by competition.
A cap or break-even test may seek stability without guaranteeing equal performance. Enforcement design matters as much as the label.