Locked Out: Why Work Stoppages in Major League Sports are Frequent in North America but Rare in Europe.

The current labour dispute in the National Hockey League raises the question of why work stoppages in North American team sports happen frequently, while in European sports no serious labour disputes have been observed to date. The long history of work stoppages in major North American leagues such as Major League Baseball, the National Basketball Association, the National Football League and the National Hockey League is related to industrial organization in these leagues. The monopsonistic environment in North American professional sports leagues enables employers to restrict the mobility of players, while on the European sports labour market restrictions have largely been abolished since the Bosman ruling in 1995. Players in Europe therefore do not have to fight for their labour rights, while in North America professionals have to fight to prevent further restrictions. The industrial organization of leagues therefore plays a crucial role in the compensation of players and differs between Europe and North America, especially through the relegation system which governs most European leagues. It is concluded that industrial structure in European sports limits monopolistic power in the labour market. An “Americanization” of European sports would make labour disputes more likely than they are now. [ABSTRACT FROM AUTHOR]