A Comparative Study of Market Entry Strategies in Sport Leagues: Two Australian Examples

Sport leagues are subject to the potential market entry of new leagues playing essentially the same sport. The economic analysis of market entry and exit is used to interpret two Australian cases of new league entry. These new entrants were World Series Cricket (cricket) and Super League (rugby league). The role of the media in the creation of both new leagues was crucial, providing commercial rationale, seed-funding and organizational capabilities. In addition, strategic input competition for venues and players helped weaken the incumbent league. The two cases analyzed provide a template for intending sport league entrants.