NFL vs USFL case analysis

NFL vs USFL case analysis - Running Head NFL vs USFL 1 NFL...

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Running Head: NFL vs USFL 1 NFL vs. USFL Case Analysis Institutional Affiliation Name
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NFL vs USFL 2 Executive Summary United States Football League (USFL), used to be an American football team that actively participated for three seasons between 1983 and 1985. In 1986, the USFL was to compete with NFL (National Football League) in the autumn/ winter season. The agreement to direct competition by the two was organized by urging the owner of New Jersey Generals, Donald Trump, and other official partners as a way of having held a forceful merger between the two leagues. However, USFL stopped all their operations before the scheduled season came. As a part of the plan, USFL strategized and filed an anti-trust court case against the National Football League. At the end of it, the jury ruled out that NFL had violated the laws of anti-monopoly. Therefore, USFL were awarded a judgment of just that was tripled to three dollars; this court decision affected the USFL ending it after losing almost one hundred and sixty-three million dollars. The story between these two football champion leagues captured the attention of many Americans between the periods that the two existed. Compared to the other football leagues starting up, USFL had some factors not related to the field, which affected them preventing the league from beginning from scratch under a new membership that they preferred. The problem began when the principal owner of USFL, Alex Spanos, pulled out from the club and became a minority owner of the league. Later on, Alex Spanos joined NFL and became the majority owner of the club. USFL went on to face stadium problems after they were denied a lease for Jack Murphy Stadium due to the pressures from the other main leagues. They, later on, sorted out their stadium issues and stabilized just as NFL. In 1986, the league stars scheduled to play an eighteen game fall during that season, here, USFL competed with NFL following the plan laid out by one of the owners, Dixon. Dixon had
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NFL vs USFL 3 strategized a budget that offered all the teams involved a way to manage the losses encountered at the beginning (Glennon, 2012). However, the Dixon plan did not go as expected; several members incurred significant losses that forced them to exit the program within the first six months of membership. The desire to get into a competition with other USFL teams and for the team to be considered as nearing the caliber of NFL contributed to these significant losses. Before the Dixon plan, back in 1984, the leagues had begun to prepare for the head-to-head competitions with NFL by the beginning of 1986 season. The majority shareholders and strongest proponents playing were Donald Trump, the owner of Generals and Eddie Einhorn, the owner of Chicago league. The two owners argued that if USFL competed with NFL, then there would be a merge up between the two teams and if the two did not merge, then the surviving team would double its earnings and investments.
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