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Determinants Of Revenue In Sports Leagues: An Empirical Assessment

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  • John Charles Bradbury

Abstract

This study investigates determinants of revenue in North America's four major professional sports leagues. Revenue is positively associated with on‐field success in baseball (MLB), basketball (NBA), and hockey (NHL), but not in football (NFL). The returns to success are not diminishing as commonly assumed, which casts doubt on the uncertainty of outcome hypothesis, and differences across leagues are consistent with revenue sharing arrangements. Estimates indicate a strong negative but diminishing relationship between stadium age and revenue. Teams in larger markets generate more revenue than smaller markets, but the returns to success do not differ according to market size. (JEL Z21)

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  • John Charles Bradbury, 2019. "Determinants Of Revenue In Sports Leagues: An Empirical Assessment," Economic Inquiry, Western Economic Association International, vol. 57(1), pages 121-140, January.
    • Handle: RePEc:bla:ecinqu:v:57:y:2019:i:1:p:121-140
    DOI: 10.1111/ecin.12710
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    11. Cristian F. Sepulveda, 2022. "Cost-benefit Analysis of an 'Average' Professional Sports Team or Stadium in the United States," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper2210, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
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    JEL classification:

    • Z21 - Other Special Topics - - Sports Economics - - - Industry Studies

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