The Discussion On The Institutional Arrangements And Industry Growth Of Professional Sports

By means of relevant theories and research methods of the new institutional economics, the institutional arrangements, industry growth and general relationship between them in the western professional sports is relative deeply studied in this paper, the following conclusions are drawn.1. Professional sports is referred to a kind of business activity which achieves the profitable goal by supplying the core production of sports performance. There exist three successively‘crucial conjuncture’which includes‘from the amateur to the professional’,‘from association to league’, and‘from watching on the spot to combination deeply with television’in the evolution of western professional sports. The three crucial conjuncture is the premise to study the general relationship between the institutional arrangements and industry growth in professional sports.2. The institutional structure of professional sports includes the premise, the core, and supporting institutional arrangements. The premise institutional arrangements are based on the property rights institution, the core institutional arrangements are embodied by the governance structure, and the supporting institutional arrangements are emphasized as competition policy in professional sports.3. Under macro-property rights institution, the establishment and improvement of professional sports enterprises’ property rights institutions made the viability of enterprises enhanced and the micro-base of industry growth in professional sports settled. 4. The governance structures containing the“enterprise-market”dual mechanism which are conformed to the particularity of the production and the cost constraint in the professional sports can economise transaction cost and increase efficiency of the professional sports league. So the professional sports league becomes the core force to drive the industry growth of professional sports on the centre-level meaning.5. The competition policy of government reflects the extent of the regulation given to the professional sports league which is largely characterized with natural monopoly as an economic organization by the government. If the extent is proper and reasonable, the competition policy of the government will produce positive guidance and promotion function to the industry growth of the professional sports.6. The individual case of the institutional arrangements and industry growth in Japanese professional sports manifests:Firstly, private property rights does not reject collective property rights, but the emergence of the latter must be under the condition that the former has been already explicit, respected and accomplished. Secondly, the competition policy of government reflects the extent of the regulation given to the professional sports by the government and the market logic. On the contrary, the industry policy reflects the intervention by the government and the country conception. As the industry policy will give place to the competition policy, the intervention will give place to the regulation. So the regulation can reflect the general condition of the supporting institutional arrangement of professional sports by the government.The above conclusions give important enlightenment to the improvement of China’s professional sports in the future. Hence, this paper presents the following advice:Respect and protect the private property rights of professional sports clubs to make their viability enhanced; improve the premise institutional arrangements with the construction in the the enterprises’property rights institutions; adjust the governance structures of the professional sports organization to economize the transaction cost and construct reasonable core institutional arrangements at the last; lay down and carry out competition policy which is proper to our own professional sports in deed based on the growth of professional enterprises and industry to improve the supporting institutional arrangements continually.