What is the North American model of sport league structure?

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Multiple Choice

What is the North American model of sport league structure?

Explanation:
North American professional sport leagues operate as closed franchises—teams exist in the league indefinitely with no relegation to a lower division. New teams join only through expansion or relocation, and the league uses centralized governance, revenue sharing, drafts, and salary caps to keep competition balanced and financially stable. This setup keeps markets protected, supports large TV deals and stable investments, and contrasts with open pyramids elsewhere where teams can move between levels based on performance.

North American professional sport leagues operate as closed franchises—teams exist in the league indefinitely with no relegation to a lower division. New teams join only through expansion or relocation, and the league uses centralized governance, revenue sharing, drafts, and salary caps to keep competition balanced and financially stable. This setup keeps markets protected, supports large TV deals and stable investments, and contrasts with open pyramids elsewhere where teams can move between levels based on performance.

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