Determinants of Franchise Values in North American Professional Sports Leagues: Evidence from a Hedonic Price Model
Abstract
Professional sports teams in North America are privately held corporations. Consequently, they are not required to make audited financial statements publicly available. We use a hedonic price model to analyze transaction prices for professional sports teams from 1969 to 2006. Results indicate that franchise age, facility ownership, number of local competitors, and metropolitan population all have significant hedonic prices. A quality-adjusted price index based on these results indicates the average annual increase in prices over the period exceeded 15%. Long-term sports team owners have experienced significant capital appreciation over the past 40 years, an outcome inconsistent with operating losses.Download Info
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Bibliographic Info
Article provided by Fitness Information Technology in its journal International Journal of Sport Finance.
Volume (Year): 3 (2008)
Issue (Month): 2 (May)
Pages: 98-105
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Handle: RePEc:jsf:intjsf:v:3:y:2008:i:2:p:98-105
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For corrections or technical questions regarding this item, or to correct its listing, contact: (Victor Matheson).
Related research
Keywords: Franchise valuation; hedonic price model;Find related papers by JEL classification:
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Recreation; Tourism
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Blog mentions
As found by EconAcademics.org, the blog aggregator for Economics research:- More on the Liverpool Sale
by Brad Humphreys in International Journal of Sport Finance Blog on 2010-10-16 14:31:19 - 2009 NHL Franchise Values Released
by brhumphreys in International Journal of Sport Finance Blog on 2009-11-15 17:38:39 - Motivation for Team Ownership: Tom Ricketts and the Cubs
by brhumphreys in International Journal of Sport Finance Blog on 2009-10-31 17:23:16
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