What is a single-entity model?

What is a single-entity model?

• A. Teams are owned by external investors
• B. All teams are owned by the league itself
• C. Individual franchise owners own each team
• D. Owners form a cooperative with the league

Answer: (B)

A single-entity model means the league owns and operates all the teams, rather than having separate private ownership for each franchise. This setup centralizes control over contracts, salaries, and branding, helping to maintain parity and manage costs across the league. That makes the statement that all teams are owned by the league itself the best description, since it captures the essence of league-wide ownership. If teams were owned by external investors, you’d have multiple private ownership groups rather than one league-wide owner. If individual franchise owners owned each team, that’s the traditional franchise model with separate owners. A cooperative arrangement would involve owners working together with the league in a shared ownership structure, not league-wide ownership of every team.

A single-entity model means the league owns and operates all the teams, rather than having separate private ownership for each franchise. This setup centralizes control over contracts, salaries, and branding, helping to maintain parity and manage costs across the league. That makes the statement that all teams are owned by the league itself the best description, since it captures the essence of league-wide ownership.

If teams were owned by external investors, you’d have multiple private ownership groups rather than one league-wide owner. If individual franchise owners owned each team, that’s the traditional franchise model with separate owners. A cooperative arrangement would involve owners working together with the league in a shared ownership structure, not league-wide ownership of every team.