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League Expansion and Interorganisational Power

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  • Dickson, Geoff
  • Arnold, Trevor
  • Chalip, Laurence
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    Abstract

    This study uses a case study of the Victorian Football League's expansion into Brisbane to examine the interorganisational power between an independent federated network and those organisations seeking to join the federation. Data were obtained through interviews with participants in the expansion process, examination of newspaper and other print media articles, and the analysis of corporate documentation. Organisations within the federation are shown to have a power advantage over the potential affiliates. The extent of this advantage is directly proportional to the importance of the potential affiliate's goals, is mediated by resources controlled by the federation, and is inversely proportional to the availability of other federations to supply the potential affiliate with the same resources. The VFL's exercise of its power is reflected in (a) a licence fee significantly higher than originally anticipated by the new affiliate, (b) an upfront cash payment of the licence fee, (c) player recruitment guidelines that did not facilitate recruitment of established VFL players, and (d) an insufficient period of time between award of the licence and the new team's entry into VFL competition.

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    File URL: http://www.sciencedirect.com/science/article/pii/S1441352305700371
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    Bibliographic Info

    Article provided by Elsevier in its journal Sport Management Review.

    Volume (Year): 8 (2005)
    Issue (Month): 2 (September)
    Pages: 145-165

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    Handle: RePEc:eee:spomar:v:8:y:2005:i:2:p:145-165

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    Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/716936/description#description

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    References

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    1. John T. Campling, 1998. "A Strategic Choice-resource Dependence Analysis of Union Mergers in the British and Australian Broadcasting and Film Industries," Journal of Management Studies, Wiley Blackwell, vol. 35(5), pages 579-600, 09.
    2. AriƱo, Africa & de la Torre, Jose & Ring, Peter S., 2001. "Relational quality: Managing trust in corporate alliances," IESE Research Papers D/434, IESE Business School.
    3. Williams, Trevor, 2005. "Cooperation by design: structure and cooperation in interorganizational networks," Journal of Business Research, Elsevier, vol. 58(2), pages 223-231, February.
    4. Roger G. Noll, 2003. "The Organization of Sports Leagues," Oxford Review of Economic Policy, Oxford University Press, vol. 19(4), pages 530-551, Winter.
    5. James A. Wolff & Richard Reed, 2000. "Firm resources and joint ventures: what determines zero-sum versus positive-sum outcomes?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 21(7), pages 269-284.
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    Cited by:
    1. Ferkins, Lesley & Shilbury, David, 2010. "Developing board strategic capability in sport organisations: The national-regional governing relationship," Sport Management Review, Elsevier, vol. 13(3), pages 235-254, August.
    2. Jakee, Keith & Kenneally, Martin & Mitchell, Hamish, 2010. "Asymmetries in scheduling slots and game-day revenues: An example from the Australian Football League," Sport Management Review, Elsevier, vol. 13(1), pages 50-64, February.
    3. Heffernan, Jackie & O'Brien, Danny, 2010. "Stakeholder influence strategies in bidding for a professional sport franchise license," Sport Management Review, Elsevier, vol. 13(3), pages 255-268, August.

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