J.C.H Jones's article 'The Economics of the National Hockey League'

J.C.H. Joness article The Economics of the subject area Hockey League (1969) purpose is to

explain by simple micro economics that the prime motive of sea captain hockey squad owners

is profit maximization. The owners argue that their main stake is for the love of the game, not the

financial benefits of owning a professional sports franchise and to bend government regulations such

as the Combines Act (note 1).

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

England, states the expression of sport cartels. Three surmisees are used to explain the behavior

described by Schofield, number two being developed by J.C.H. Jones (1969). (1) The profit

maximization hypothesis. (2)The spliff profit maximization hypothesis that the entire cartel (league)

strives for. This hypothesis does not incorporate non profit objectives that influence group behavior.

(3) The usefulness maximization seat that totallyow for many possibilities usually pliable arguments

such as the success of the team at a precondition year and paid attendance for the teams venue.

By explaining the frame work of a professional sports league Jones introduces us to factors that

make an organized league function, which seems kind of familiar to any other monopolistic markets.

Since no team can create any revenue by themselves they must form a coalition with another club to

produce a profit generating output, namely a hockey game. Other clubs go in this coalition thus

creating a formal league which we call the National Hockey League. Jones then states how revenue

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

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

equilibrium amongst all clubs. The model is then adjusted to real life variables that turns his

theoretical model into what we know...

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