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The Fundamental Business Difference between American and European Sport

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10 months ago

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There are many similarities between professional sports in North America and Europe. Athletes in major leagues regularly earn eye-watering sums of money while millions of adoring fans tune in to watch games on TV each week. Sports betting is also popular on both sides of the pond, with bookmakers often using the same approaches to attract new customers. This results in sites like Paddy Power running free bet promotions for new customers while paying to sponsor teams in an attempt to gain market share and build brand recognition. 

But for all their similarities, there is a fundamental difference between professional sports in the United States of America and Canada, and in much of Europe.

Profit Maximisation vs Utility Maximisation

The United States prides itself on being the stalwart of free-market capitalism, with these principles finding their way into just about every area of life from utilities to healthcare. Not even sport is excluded from this philosophy and, therefore, major leagues are structured in such a way that teams can be profit maximisers. 

This approach manifests itself in several key areas. Firstly, sports leagues are closed loops; the same 32 teams that are in the NFL today will be there in five years’ time, regardless of performance. 

Salary caps are designed to keep costs down and prevent a spending arms race affecting everyone’s bottom lines. At the same time, revenue is earned from just about every possible source with sponsors crammed into anywhere they’ll fit and TV broadcast deals running into the billions each year. 

On the other hand, European sports leagues, while still needing to make a profit, take a very different approach. Instead of trying to maximise the figure on the bottom line of their income statement, they strive for utility which, in the case of sport, is victories. 

The league structures are designed to reward sporting success and punish failures. For example, the English Premier League relegates the three worst-performing clubs at the end of each season, replacing them with the best three from the EFL Championship, the league below the EPL. 

Club owners that attempt to put profit-making over victories actually end up achieving neither financial nor sporting success. 

Manchester United vs the Dallas Cowboys

One way that this philosophical gulf manifests itself is in which teams acquire the most wealth. 

In England, the richest club is Manchester United, while in the US the Dallas Cowboys are the team with the largest balance sheet. 

However, there is a fundamental difference between these two teams. Manchester United are the most successful team in the Premier League era, having won 13 titles since the competition began in 1992. 

The Cowboys, on the other hand, haven’t won a Super Bowl since 1995. In fact, they’ve not even made it into the championship game since then either. They’re not even the most successful team in the NFL’s history, trailing behind both the Pittsburgh Steelers and the New England Patriots. 

Buying Sucess

While profit maximisation may sound like a cynical attempt to squeeze every last penny from a sport that is loved by millions of fans, it isn’t quite that simple. The profit is needed to sustain the teams in the hyper-competitive and ultra-professional environment of 21st-century professional sport. 

The structure of US competitions prevents one team from trying to buy its way to glory by limiting the amount that can be spent on players. In doing so, it ensures a (more) level playing field and helps to make the sport more unpredictable. 

However, in the European model, where profit is less of a concern, wealthy owners can use their deep pockets to sign the best talent and secure victory.

There are plenty of examples of this, especially in England. Manchester City was a club that saw very little success until it was acquired by new wealthy owners who could hire one of the best managers in football and fill the changing rooms with the greatest players on the planet. 

Similarly, Leicester City earned promotion into the Premier League and then won it the following year, only after a huge cash injection. 

It’s difficult to say whether one approach is right and one is wrong. They are very different and are products of their unique histories but, arguably, these contrasting philosophies are what make each league what it is today, so it wouldn’t be right for either to completely shift their approach.

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The Best Bets to Place on Major League Baseball

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3 days ago

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03/14/2023

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The decision by the Supreme Court for states to be able to legalize sports betting was a monumental one. At present, 36 states have given the nod for punters to start betting on sports in some form, and another three could get in on the action in the course of 2023. Some states offer sports bettors more freedoms, whereas others are more restrictive. Depending on the state, it’s possible to bet at a betting shop, in a casino or on a mobile phone, or all three.

One sports event you might consider laying money down on is a baseball game. Below is a look at some of the different bets you can place on a baseball match, plus a consideration of the pros and cons of each.

Moneyline bets

A moneyline bet is the simplest type of bet and involves betting on the team you think will win. It doesn’t matter whether your team wins by 100 runs or by 1. All that matters is that they win. If they win, you win. How much you win depends on whether the team you’re betting on is the favorite or the underdog, which you can find out by checking the baseball odds.

The advantage of moneyline betting being so straightforward also proves to be a key disadvantage. Moneyline bets aren’t good for winning lots for money because they’re the easiest type of bet to make.

Totals bets

These bets are also commonly referred to as “Overs and unders” bets and are likewise simple bets, only this time you’re betting on the total number of runs scored in the game. The sportsbooks will predict that the teams will score in total a certain amount of runs. All you have to do is bet whether the actual amount will be higher (an overs bet) or lower (an unders bet).

The ease of totals betting is one of the big pros of this type of bet. You also have a fifty-fifty chance of winning, so the odds aren’t heavily stacked against you, and if you have a classic matchup, there’s a big certainty of the under. You can also bet on specific segments of the game, such as the first five innings, halves, quarters or the entire game.

Totals betting does have its disadvantages, however. One is that sportsbooks want equal betting on both sides and will move the betting lines around to ensure this. You should also be wary of the potential for extra innings. Some sportsbooks will include extra innings, whereas other won’t, so check how extra innings would affect the outcome of your bet.

Run line bets

Run line bets are like spread bets, only they have a fixed spread and the money paid out beside the number is what changes. The sportsbooks will set a run line, which is the number above or below which a team has to win or lose a game, depending on how you’ve bet.

One of the best advantages of run line betting is that if you think a team will win by a significant amount, you can earn a big payout. If, however, you think the underdog is a better bet, you won’t win as much because it’s a safer bet, whereas if you were making a moneyline bet, the underdog would win you more money because it’s a riskier bet.

Reverse run line bet

This is a bet in which the favorite and the underdog are flipped for the wager. As a result, the payouts become massively different. If a favorite had to win by 1.5 runs in a standard line bet, now they have to lose by fewer than that number; and the underdog would have to win by more than that amount, rather than lose.

If you think the underdog is going to pull something extraordinary out of the bag, a reverse run line bet is the one to choose, and if the underdog does come up trumps for you, you’ll receive a handsome payout.

Futures bets

A futures bet is a bet on something that is going to happen and isn’t decided by one game. The most common of these is a bet on who will win the World Series. You can place a futures bet at any time: before the season, during the pre-season, during the regular season or even during the playoffs.

These types of bets are fun and pay out well if you bet correctly. You can also hedge if things aren’t looking good for your bet. The cons of such bets are that it’s hard to make predictions and that the betting lines move a lot.

Major League Baseball always provides excitement. The bets above can add even more to your enjoyment of an MLB game. Why not give them one of a try and see how you do?

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Jump Jockeys to Follow at Cheltenham Festival 2023

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3 days ago

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03/14/2023

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It is once again time for those brave souls of the jump jockey world to grab their boots and helmets and make their way to the home of British racing for the Cheltenham Festival. The Cheltenham Festival is the biggest meeting in jumps racing, with 28 races across four days featuring the best trainers, jockeys, and horses in the sport.

Top Jockeys to Follow in 2023

Making it to the top table of the sport can be a long and winding road for jockeys. The chance to ride at the Cheltenham Festival is the ultimate goal and the jockeys mentioned below will be lucky enough to be riding some of the popular Cheltenham 2023 bets, including 6/4 Gold Cup favorite, Galopin Des Champs.

Paul Townend

Paul Townend is the champion Irish Jump jockey and has the envious position of stable jockey to the all-conquering trainer, Willie Mullins. Townend will be many people’s idea of the best Cheltenham Festival top jockey bet, and he currently heads the market at odds of 2/5.

Twice crowned Leading Rider at the Festival, Townend now has 22 Cheltenham wins to his name, and has a CV chock full of wins in the most prestigious races in the sport.

Nico de Boinville

Britain’s go-to jockey for the big races, Nico de Boinville has partnered with some of the greatest horses to ever grace the hallowed turf at Cheltenham. Thanks to his association with the legendary trainer, Nicky Henderson, de Boinville has 15 festival wins to his name and was crowned Leading Rider in 2019.

The Englishman is booked to ride a strong team of horses for Henderson again in 2023, with the likes of the rejuvenated Shiskin, Arkle Chase hopeful, Jonbon, and Champion Hurdle favorite, Constitution Hill, all ready to run big races.

Another big festival may be in store for the three-time Champion Chase winner.

Rachael Blackmore

Now one of the most recognizable faces in jump racing, Rachael Blackmore has broken down many barriers and created history on many occasions in the last few years. She is the only woman ever to have won the Aintree Grand National, and in 2021 she became the first lady rider to win a Champion Hurdle, as well as the first to be crowned Leading Rider at the Cheltenham Festival.

12 months later, Blackmore would again create history by becoming the first woman to ride the winner of the prestigious Cheltenham Gold Cup. Although she may not have the same quality of rides for this year’s festival, it would be strange if she were not to reach the winner’s enclosure at least once.

Townend, de Boinville, and Blackmore are just three of the top jockeys that you can expect to see at the Cheltenham Festival in 2023. The majority of races on offer throughout the week are likely to go their way, but other talented riders such as Danny Mullins, Davy Russell, and Mark Walsh, will also be hoping for their own piece of the pie. 

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All You Need to Know about the Cheltenham Festival

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1 week ago

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03/10/2023

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Every year the Cheltenham Festival meeting in Gloucestershire, England sees the best National Hunt horses from each of the respective divisions in the sport compete. It is watched around the world, and for many horse racing fans, this is the highlight of the year.

The meeting is often described as being “The Greatest Show on Turf.” Here is a look at what makes the Cheltenham Festival so special, and what there is to look forward to this year.

Cheltenham Gold Cup the Blue Riband Event

The most prestigious race at the Cheltenham Festival is the Cheltenham Gold Cup. It is scheduled for the fourth and final day of the meeting. The Grade One contest takes place over three miles, two and a half furlongs.

When you look through the honors’ board of the Cheltenham Gold Cup, the greatest staying chases in history have been successful in this race, including Golden Miller, Arkle, Mill House, and Kauto Star. Galopin Des Champs is one of the leading Cheltenham betting tips this year to add his name alongside those horses. He is the +150 favorite to win the 2023 renewal of the race.

28 Races Across Four Days

There are 28 races spread across four days at the Cheltenham Festival, with one Championship contest on each of those race days. All 28 contests mean a lot to every jockey, owner, and trainer competing at the meeting.

Irishman Willie Mullins is the most successful trainer in the history of the Cheltenham Festival. He has had an incredible 88 winners at the meeting, including two wins in the Cheltenham Gold Cup with Al Boum Photo. The Irish trainer will be hoping to add to his tally in 2023 when he heads across the Irish Sea with a strong team of horses.

Prestbury Cup Battle

Although the Cheltenham Festival is primarily about individual successes, it also involves a fascinating battle between Great Britain (home team) and Ireland across the week. Those two teams compete for the Prestbury Cup, with the nation with the most winners over the four days taking the trophy.

Great Britain and Ireland both appoint a celebrity captain before the meeting to represent each nation. Those who train in Great Britain feature for the home team, while Irish trainers compete for Ireland.

Ireland has won the last three renewals of the Prestbury Cup, including in 2022 when they prevailed 18-10. They go into the 2023 meeting as the favorites to defend their trophy.

Electric Atmosphere on Course

The atmosphere across the four days at Cheltenham is often described as electric and up there with the leading sports events around the world. There is a traditional roar from the crowd when the starter lets the horses go for the opening race of the week, the Supreme Novices’ Hurdle.

Gold Cup Day is the busiest of the four days, as racing fans love to see the best 3m chasers in the sport compete for the biggest prize. It is also the afternoon when the Prestbury Cup is settled, as well as the leading jockey and trainer awards.

The 2023 Cheltenham looks set to be another thrilling renewal of the meeting and it’s likely to throw up some big storylines. 

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