Legal Definitions - sports franchise

A sports franchise is a business entity that owns and operates a professional sports team. It holds the exclusive right to participate in a specific sports league and represent a designated geographic market, including all associated assets and intellectual property.

A sports franchise refers to a business entity that owns and operates a professional sports team within a recognized league. This entity typically holds exclusive rights to represent a specific geographic market (like a city or region) within that league, allowing it to generate revenue from ticket sales, merchandise, broadcasting rights, and sponsorships. Essentially, it is the business organization behind a professional sports team, possessing valuable assets and market rights.

• Imagine a wealthy entrepreneur decides to purchase the "Riverside Raptors", a fictional professional baseball team, from its current ownership group for a significant sum. The sale includes the team's players, its brand, and its exclusive right to play in the league within the Riverside market.

  This illustrates a sports franchise because the Riverside Raptors is a distinct business entity that owns and operates a professional sports team. Its sale demonstrates that it is a valuable asset, a business that can be bought and sold, complete with its market rights and team operations.

• A major professional hockey league announces plans to expand, inviting bids from various cities to host a new team. The city of "Northwood" successfully secures the rights, and a new ownership group forms to establish the "Northwood Knights", building an arena and signing players.

  Here, the Northwood Knights, once established, become a sports franchise. The league grants this new business entity the exclusive right to operate a professional hockey team in Northwood, making it a new member of the league with all the associated business and operational responsibilities.

• The management of the "Capital City Chargers", a professional basketball team, is busy negotiating a new television broadcast deal, planning promotional events for the upcoming season, and overseeing the team's player draft selections.

  The Capital City Chargers represent a sports franchise because it is the business organization responsible for all these activities. It owns the team, manages its business functions (like securing broadcast rights and marketing), and operates within a professional league, demonstrating its role as a functioning commercial enterprise.