That's why it has become perfectly acceptable for profesional sports to have the kind of regulatory systems in place that would never be permitted under anti-trust law in any other industry. Can you imagine any other industry that would be permitted to have things like revenue sharing, a salary cap, and -- this one always makes me laugh -- an entry draft?
You have some valid points, BUT......BUT.....you’re not looking at this through the correct template. A sports league is technically 30 or 32 different businesses in the same industry....depending on the league. The key word here is “technically.”
HOWEVER: they function as one business with 32 branch offices competing in the industry of entertainment dollars, etc. In other words, in the technical sense, it would be good for the Detroit Red Wings to put the Tampa Bay Lightning OUT OF BUSINESS just like it would be good to put any other financial competitor out of business.
In the FUNCTIONAL REALITY though, it helps Detroit for Tampa to be financially successful and vice versa. Again, they function like 32 (or 30) branch offices or profit centers of the SAME business competing for the entertainment and sports dollar with all other entertainment and sports.
Therefore the draft and all other normal business parameters that you are trying to apply do NOT apply. There is competition on the ice (or hardwood or field or whatever) and that is impacted somewhat by financial competition...but again, the Cowboys and the Giants would not have a league if they put the other 30 “branch offices” of the NFL out of business.
You have to stand back and understand the very unique nature of a sports league and the very constrained competition between the different “businesses” so to speak.