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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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    2. Jan C. van Ours, 2024. "No Novelty Effect but a Honeymoon that Lasts On the Attendance Effects of New Football Stadiums," Tinbergen Institute Discussion Papers 24-010/V, Tinbergen Institute.
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    6. Michal Friesl & Jan Libich & Petr Stehlík, 2020. "Fixing ice hockey’s low scoring flip side? Just flip the sides," Annals of Operations Research, Springer, vol. 292(1), pages 27-45, September.
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    8. Stefan Szymanski, 2023. "Anticipating the honeymoon: Event study estimation of new stadium effects in Major League Baseball using the imputation method," Economic Inquiry, Western Economic Association International, vol. 61(4), pages 1077-1102, October.
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    12. Francisco Triguero‐Ruiz & Antonio Avila‐Cano, 2023. "On competitive balance in the group stage of the UEFA Champions League," Scottish Journal of Political Economy, Scottish Economic Society, vol. 70(3), pages 231-248, July.
    13. Quinn A. W. Keefer, 2022. "Sex Differences in High-Level Managerial Jobs: Evidence From Professional Basketball," Journal of Sports Economics, , vol. 23(3), pages 301-328, April.
    14. Adam C. Merkle & Catherine Hessick & Britton R. Leggett & Larry Goehrig & Kenneth O’Connor, 2020. "Exploring the components of brand equity amid declining ticket sales in Major League Baseball," Journal of Marketing Analytics, Palgrave Macmillan, vol. 8(3), pages 149-164, September.
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    17. Böttger, Tom & Vischer, Lars, 2024. "Effects of the video assistant referee on games in the Bundesliga," Discussion Papers of the Institute for Organisational Economics 4/2024, University of Münster, Institute for Organisational Economics.
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    20. Brian M. Mills & Rodney Fort, 2023. "Performance Quality Preference Heterogeneity in Major League Baseball," Journal of Sports Economics, , vol. 24(3), pages 352-373, April.

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    More about this item

    JEL classification:

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

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