Which of the following scenarios best illustrates entry barriers in professional sports?

• A. Leagues remove barriers to new teams.
• B. An owner can freely join any league without restrictions.
• C. New teams must pay large entry fees and face other barriers.
• D. Players can freely switch teams.

Answer: (C)

Entry barriers are obstacles that make it difficult for new teams to join a professional sports league. In pro sports, leagues often set high franchise fees, facility and market requirements, and require approval from current owners. This combination of financial and organizational hurdles is designed to protect existing franchises and help ensure the long-term viability of the league.

The scenario where new teams must pay large entry fees and face other barriers best illustrates this concept. It shows how joining a league isn’t open to anyone and involves substantial costs and conditions, effectively limiting who can enter.

By contrast, removing barriers to new teams would make entry easier; allowing an owner to join any league freely ignores the protective and selective nature of entry barriers; and players moving between teams concerns labor mobility rather than barriers to entry for new franchises.