The NFL and the Theory of the Firm

Cite this Article
Joshua D. Wright, The NFL and the Theory of the Firm, Truth on the Market (September 28, 2009),

Some serious reading first on American Needle, Inc. v. National Football League, No. 08-661 (U.S. S. Ct.):

For those who prefer the lighter side of things, here is the Onion (HT: Peter Klein) invoking an Alchian and Demsetz (1972) angle on the Dallas Cowboys and their owner Jerry Jones:

IRVING, TEXAS — In an attempt to cut the franchise’s losses and “move forward in a positive direction,” the Dallas Cowboys severed ties with controversial owner Jerry Jones Monday, ending their tumultuous 20-year relationship with the divisive figure.

According to sources within the Cowboys organization, the decision to release Jones was influenced by the lack of any playoff victories in more than 12 years, the owner’s distracting sideline antics, and his selfish, “me first” attitude, which many said was having a cancerous effect on the clubhouse.

“We value Jerry’s contributions to the Cowboys over the past two decades, but it has become painfully clear that we just don’t share the same priorities,” Cowboys public relations director Richard Dalrymple said. “This wasn’t an easy choice to make, but we’re confident it is a decision that can only make our team better.”