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Introduction Every organization and every event needs to be structured properly for successful completion and evaluation. Whether it is business or sports, the appropriate structure and the framework is to be adopted properly with the correct attainment of features. MLS is Major League Soccer which is a professional league of Soccer in United States and Canada. The league is one of the sports league in USA and it comprises of 19 teams among which, 16 teams are from US and 3 teams are from Canada. The League is founded in the year 1993 and this league is affiliated and sanctioned by US Soccer Federation. The teams can play in other major cups also like US Open Cup, Canadian Champion ship, CONCACAF Champions league. Instead of the initial financial and operational problems in the first few years and there were some major transformations at that period. After the changes, MLS has expanded in terms of financial and structural attributes and with the specific objective by the owners, the evolution has been incurred perfectly (Cairns, et al, 1990). Instead of the different owners for the different teams, MLS works as a single entity and each team is owned and controlled by the league’s investors. These investors or operators control their teams just like the owners control their teams in other major leagues and thus t he organizational structure and the different business and economical attributes are also different for the MLS. Here the different business proposition and attributes with the economic and management perspective are discussed and analysed and those will help to understand the restructure the future strategies or different future framework for MLS (Cairns, et al, 1990). Organizational structure of MLS MLS follows a unique structure among all the leagues present in North America. MLS is operated by single body structure. All the clubs who have joined with MLS are considered as the part of business entity. There is only a single ownership present for the existing clubs within MLS. All the existing clubs under the league are operated and controlled by the league itself. The existing clubs under the league can operate independently and they can organize their operation independently. The activities which are done by the front office are considered as the accountability of the club. The Board of Directors are also considered as the accountability of the league. The major shareholder group or the owners belong to the league itself. The company is recently adopting the expansion strategy by adding more clubs under the league. There is a culture among the league to share the revenue and profits among the clubs of the league. Presently, the league consists of 19 clubs out of them 16 clubs belong to USA and the remaining 3 belong to Canada. Though the clubs get the opportunity to run the daily operation independently but the control lies in the hand of the league itself. In case, the contracts between the players are required to be reviewed and even in case of establishing new contracts the league will take every decisions. The player’s contracts are made centrally and the clubs cannot take any decisions regarding this. The Major League Soccer maintains a franchise model in which the clubs under the Major league Soccer are accountable to provide franchise fees to the league. Generally, the North American clubs enjoy more liberty than the European clubs but, Major Soccer League is known as the one vital exception. The player Union consists of the labours of five different leagues and those are “The National Football League Players Association”, The National Basketball and Hockey Association”, “The major league soccer association” and finally the “Major League Basketball players Association” forms the labour Union. The economic and financial integration are happened by the collective bargaining agreement (CBA) among the players of the clubs and the leagues. The CBA process lasts for five years and the process of re-negotiation among the players and the league owners can create a hindrance in the progress of the organization. The organization structure can be observed from the view point of productivity and the productivity of the league comes from two distinct bases and those are, the team base and the league base. First the club owners used to develop the skills and strengths for their players but any individual club is unable to produce long term profits. The second stage of organizational production function then consists of the league structure and performance (Demmert, 1973). Literature on sports economics in respect of MLS There are two dimensions present in the sports economics which signifies the level of competition in the sports market or the rules and regulations adopted by the sports market. The first dimension is related to the labour market where the movement of the players are highly regulated and the second dimension is the regulation implemented in the finance market. The finance market refers to that market which signifies the revenue collection either individually or collectively (Kesenne, 2010). The central body has the power to collect and distribute the revenues among the existing clubs. The two-dimensional model can provide four possible outcomes. Source: The sport business future (Aaron C.T. Smith) The revenue collection may be done by the competitor team and can be retained by them without distributing the revenue amount. The two dimensional framework which can raise four different types of possibilities can be shown by the above diagram. The 1st quadrant in the above diagram represents the free market where the finance market and the labour market are unregulated in nature (Cairns, et al, 1990). The home team is responsible for collecting the revenue but for example, the television promotions can be managed by the individual clubs. The quadrant two represents the unregulated type of labour market and the regulated type of finance market. Whatever the revenue will come can be used to redistribute those among the poorly structured clubs and teams but in this system the players would have the choice to choose the clubs where they want to play. The quadrant 3 represents the regulated labour market and the regulated finance market and this is considered as the mostly regulated and tight market scenario. Quadrant four finally, represents the unregulated finance and restricted labour market. The player’s contribution should be equally distributed and the talent of the players will also be equally distributed among the participating team (Rascher, 2012). The sources of revenues are generated in the North American context from different broad sources and those are selling of the tickets, second source is the facility based revenue which signifies that with the improved facilities the demand of the games would be increased and thus sports expenditure would also increase. The concept of transfer payment does not present in the context of North America and most of the leagues encourage prohibition of selling the players for cash (Cairns, et al, 1990). The ticket sales along with the fees for media rights, television and broadcasting rights etc are the major sources of the revenues of the company. The leagues have evaluated new form of earning revenues including the premium ticket selling, by introducing the luxury boxes and by introducing the club seats. The club seats refer to the special seating arrangement which is arranged in a special area of the club. The premium tickets are sold almost two to four times more than the normal ticket prices. Sponsorship is another source of obtaining revenue by the league (Sloane, 2006). In the sports economics it is argued about which objective a firm or a lunge should follow. One objective is the profit maximization objective which is considered as the basic objective of any economy. The second objective is the utility maximization objective which is required for the long term development of an organization. For determining the
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