3 Leagues argue that they do not limit entry since new leagu

3. Leagues argue that they do not limit entry since new leagues (rival leagues) can begin and compete against the incumbent leagues. But history shows that rival leagues do not exist for a long period of time? What two things usually happen to rival leagues?

Solution

3.

The first thing that happens is the high entry barrier that makes rival leagues to be unable to initiate. It makes very difficult for the rival league to start. The second thing that happens is the lack of audience, target market, infrastructure and support to the rival league that can make them successful. Besides, top players are also tied up with the existing leagues. So, the rival leagues don’t come up.