IDEAS home Printed from https://ideas.repec.org/a/bla/asiapr/v11y2016i1p95-112.html

A Business Analysis of Asian Baseball Leagues

Author

Listed:
  • Hayley Jang
  • Young Hoon Lee

Abstract

This study reviews previous research on sports economics and applied descriptive analyses to derive policy recommendations for the Korean Baseball Organization and the Nippon Professional Baseball. We discuss various aspects of the contemporary baseball business, and compare them with the American Major League Baseball (MLB). One distinctive characteristic common to both Asian leagues is the governance structure, where member teams are owned by major conglomerates. We explore this characteristic to assess the business objectives of the Korean Baseball Organization and the Nippon Professional Baseball, and find that their sources of competitive balance differ from those in MLB. Our conclusion suggests that their business objective should begin to move slowly toward one similar to that of MLB, and safeguards should be implemented to maintain a reasonable competitive balance. We also conclude that sports diplomacy and the creation of international competition are important because international competition and the success of national teams are critical for fan demand.

Suggested Citation

  • Hayley Jang & Young Hoon Lee, 2016. "A Business Analysis of Asian Baseball Leagues," Asian Economic Policy Review, Japan Center for Economic Research, vol. 11(1), pages 95-112, January.
    • Handle: RePEc:bla:asiapr:v:11:y:2016:i:1:p:95-112
    DOI: 10.1111/aepr.12121
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/aepr.12121
    Download Restriction: no
    File URL: https://libkey.io/10.1111/aepr.12121?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Young H. Lee & Trenton G. Smith, 2008. "Why Are Americans Addicted To Baseball? An Empirical Analysis Of Fandom In Korea And The United States," Contemporary Economic Policy, Western Economic Association International, vol. 26(1), pages 32-48, January.
    2. Chun-Da Chen & Chih-Chun Chen, 2012. "Assessing the Effects of Sports Marketing on Stock Returns," Journal of Sports Economics, , vol. 13(2), pages 169-197, April.
    3. Eiji Yamamura, 2011. "Game Information, Local Heroes, and Their Effect on Attendance: The Case of the Japanese Baseball League," Journal of Sports Economics, , vol. 12(1), pages 20-35, February.
    4. Craig A. Depken II, 2001. "Fan Loyalty in Professional Sports," Journal of Sports Economics, , vol. 2(3), pages 275-284, August.
    5. Rodney Fort & James Quirk, 1995. "Cross-subsidization, Incentives, and Outcomes in Professional Team Sports Leagues," Journal of Economic Literature, American Economic Association, vol. 33(3), pages 1265-1299, September.
    6. Young Hoon Lee, 2006. "The Decline of Attendance in the Korean Professional Baseball League," Journal of Sports Economics, , vol. 7(2), pages 187-200, May.
    7. Rodney Fort, 2015. "Managerial Objectives: A Retrospective on Utility Maximization in Pro Team Sports," Scottish Journal of Political Economy, Scottish Economic Society, vol. 62(1), pages 75-89, February.
    8. La Croix, Sumner J & Kawaura, Akihiko, 1999. "Rule Changes and Competitive Balance in Japanese Professional Baseball," Economic Inquiry, Western Economic Association International, vol. 37(2), pages 353-368, April.
    9. Young Hoon Lee & Rodney Fort, 2005. "Structural Change in MLB Competitive Balance: The Depression, Team Location, and Integration," Economic Inquiry, Western Economic Association International, vol. 43(1), pages 158-169, January.
    10. Helmut M. Dietl & Martin Grossmann & Markus Lang, 2011. "Competitive Balance and Revenue Sharing in Sports Leagues With Utility-Maximizing Teams," Journal of Sports Economics, , vol. 12(3), pages 284-308, June.
    11. Craig A. Depken II, 2000. "Fan Loyalty and Stadium Funding in Professional Baseball," Journal of Sports Economics, , vol. 1(2), pages 124-138, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Young Hoon Lee & Yongdai Kim & Sara Kim, 2019. "A Bias-Corrected Estimator of Competitive Balance in Sports Leagues," Journal of Sports Economics, , vol. 20(4), pages 479-508, May.
    2. Sang Hun Sung & Doo-Seung Hong & Soo Young Sul, 2020. "How We Can Enhance Spectator Attendance for the Sustainable Development of Sport in the Era of Uncertainty: A Re-Examination of Competitive Balance," Sustainability, MDPI, vol. 12(17), pages 1-15, August.
    3. Renata V. Klafke & Paulo M. Gomes & Demétrio Mendonça Junior & Simone R. Didonet & Ana M. Toaldo, 2021. "Engagement in social networks: a multi-method study in non-profits organizations," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 18(2), pages 295-315, June.
    4. Eiji Yamamura, 2016. "Comment on “A Business Analysis of Asian Baseball Leagues”," Asian Economic Policy Review, Japan Center for Economic Research, vol. 11(1), pages 115-116, January.
    5. Yan Feng & Jinbao Wang & Yeujun Yoon, 2020. "Online Webcast Demand vs. Offline Spectating Channel Demand (Stadium and TV) in the Professional Sports League," Sustainability, MDPI, vol. 12(23), pages 1-18, November.
    6. Takanobu Nakajima, 2016. "Comment on “A Business Analysis of Asian Baseball Leagues”," Asian Economic Policy Review, Japan Center for Economic Research, vol. 11(1), pages 113-114, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fort, Rodney & Maxcy, Joel & Diehl, Mark, 2016. "Uncertainty by regulation: Rottenberg׳s invariance principle," Research in Economics, Elsevier, vol. 70(3), pages 454-467.
    2. Michael Lewis & Yeujun Yoon, 2018. "An Empirical Examination of the Development and Impact of Star Power in Major League Baseball," Journal of Sports Economics, , vol. 19(2), pages 155-187, February.
    3. Kevin Mongeon & Jason Winfree, 2013. "The Effects of Cross-Ownership and League Policies Across Sports Leagues Within a City," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 43(3), pages 145-162, November.
    4. Dong C. Won & Young H. Lee, 2008. "Optimal dynamic pricing for sports games with habitual attendance," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(8), pages 639-655.
    5. Garcia-del-Barrio, Pedro & Agnese, Pablo, 2021. "Does Compliance with Financial Fair Play Rules Improve the Football Clubs' Sport Performance and Their Chances to Reach UEFA Competitions?," IZA Discussion Papers 14474, Institute of Labor Economics (IZA).
    6. Young Hoon Lee & Yongdai Kim & Sara Kim, 2019. "A Bias-Corrected Estimator of Competitive Balance in Sports Leagues," Journal of Sports Economics, , vol. 20(4), pages 479-508, May.
    7. Sang Hun Sung & Doo-Seung Hong & Soo Young Sul, 2020. "How We Can Enhance Spectator Attendance for the Sustainable Development of Sport in the Era of Uncertainty: A Re-Examination of Competitive Balance," Sustainability, MDPI, vol. 12(17), pages 1-15, August.
    8. Luc Arrondel & Richard Duhautois & Jean-François Laslier, 2023. "Profit vs. win maximization in a league: a paradox," Working Papers halshs-04358491, HAL.
    9. Marc Rohde & Christoph Breuer, 2018. "Competing by investments or efficiency? Exploring financial and sporting efficiency of club ownership structures in European football," Sport Management Review, Taylor & Francis Journals, vol. 21(5), pages 563-581, December.
    10. Young Hoon Lee & Hayley Jang & Rodney Fort, 2016. "Just looking for a good game: competitive balance in the Korean Professional Baseball League," Applied Economics, Taylor & Francis Journals, vol. 48(33), pages 3104-3115, July.
    11. Kevin E. Henrickson, 2012. "Spatial Competition And Strategic Firm Relocation," Economic Inquiry, Western Economic Association International, vol. 50(2), pages 364-379, April.
    12. Young Hoon Lee, 2009. "The Impact of Postseason Restructuring on the Competitive Balance and Fan Demand in Major League Baseball," Journal of Sports Economics, , vol. 10(3), pages 219-235, June.
    13. Craig A. Depken Ii & Darren Grant, 2011. "Multiproduct Pricing In Major League Baseball: A Principal Components Analysis," Economic Inquiry, Western Economic Association International, vol. 49(2), pages 474-488, April.
    14. Hayley Jang & Young Hoon Lee & Rodney Fort, 2019. "Winning In Professional Team Sports: Historical Moments," Economic Inquiry, Western Economic Association International, vol. 57(1), pages 103-120, January.
    15. Dennis Coates & Brad R. Humphreys, 2005. "Novelty Effects Of New Facilities On Attendance At Professional Sporting Events," Contemporary Economic Policy, Western Economic Association International, vol. 23(3), pages 436-455, July.
    16. Mongeon, Kevin & Winfree, Jason, 2012. "Cross-ownership, league policies and player investment across sports leagues," MPRA Paper 39218, University Library of Munich, Germany.
    17. Andrew Larsen & Aju J. Fenn & Erin Leanne Spenner, 2006. "The Impact of Free Agency and the Salary Cap on Competitive Balance in the National Football League," Journal of Sports Economics, , vol. 7(4), pages 374-390, November.
    18. Helmut Dietl & Rodney Fort & Markus Lang, 2011. "International Sports League Comparisons," Working Papers 0042, University of Zurich, Center for Research in Sports Administration (CRSA).
    19. Todd Nesbit & Kerry King, 2010. "The Impact of Fantasy Football Participation on NFL Attendance," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 38(1), pages 95-108, March.
    20. Young Hoon Lee & Yongdai Kim & Sara Kim, 2018. "Unbiased Estimation of Competitive Balance in Sports Leagues with Unbalanced Schedules," Working Papers 1801, Nam Duck-Woo Economic Research Institute, Sogang University (Former Research Institute for Market Economy).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:asiapr:v:11:y:2016:i:1:p:95-112. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/jcerrjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.