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Why did the first Negro National League disband in 1931?

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Negro league The 1935 roster of the Negro league team the Pittsburgh Crawfords, including Cool Papa Bell (seventh from right), Josh Gibson (fourth from right), and Satchel Paige (second from right).

The first Negro National League (NNL) disbanded in 1931 due to several compounding factors:

Economic Crisis: The deepening Great Depression left most fans with little disposable income, severely impacting the financial viability of the teams.1
Loss of Leadership: The league struggled significantly following the 1926 hospitalization of its founder, Andrew "Rube" Foster, who suffered from mental illness. The NNL lacked his management acumen and foresight in the years that followed.1
Structural Instability: Early leagues were inherently shaky, often lacking exclusive control over ballparks and suffering from erratic scheduling and inconsistent umpiring. Furthermore, a wide disparity in team quality meant that only a few dominant clubs generated significant revenue, leaving weaker franchises financially vulnerable.1

Following the league's collapse, some of its solvent franchises, such as those in Chicago and Indianapolis, joined the Negro Southern League for the 1932 season.1