IDEAS home Printed from
   My bibliography  Save this article

Determinants of Franchise Values in North American Professional Sports Leagues: Evidence from a Hedonic Price Model


  • Brad R. Humphreys

    () (University of Alberta)

  • Michael Mondello

    (The Florida State University)


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.

Suggested Citation

  • Brad R. Humphreys & Michael Mondello, 2008. "Determinants of Franchise Values in North American Professional Sports Leagues: Evidence from a Hedonic Price Model," International Journal of Sport Finance, Fitness Information Technology, vol. 3(2), pages 98-105, May.
  • Handle: RePEc:jsf:intjsf:v:3:y:2008:i:2:p:98-105

    Download full text from publisher

    File URL:
    Download Restriction: Full-text download requires subscription from FIT.

    As the access to this document is restricted, you may want to search for a different version of it.


    Blog mentions

    As found by, the blog aggregator for Economics research:
    1. More on the Liverpool Sale
      by Brad Humphreys in International Journal of Sport Finance Blog on 2010-10-16 19:31:19
    2. 2009 NHL Franchise Values Released
      by brhumphreys in International Journal of Sport Finance Blog on 2009-11-15 23:38:39
    3. Motivation for Team Ownership: Tom Ricketts and the Cubs
      by brhumphreys in International Journal of Sport Finance Blog on 2009-10-31 22:23:16


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

    Cited by:

    1. repec:gam:jijfss:v:5:y:2017:i:4:p:25-:d:117169 is not listed on IDEAS
    2. N. Edward Coulson & Rodney Fort, 2010. "Tax Revisions Of 2004 And Pro Sports Team Ownership," Contemporary Economic Policy, Western Economic Association International, vol. 28(4), pages 464-473, October.

    More about this item


    Franchise valuation; hedonic price model;

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism


    Access and download statistics


    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:jsf:intjsf:v:3:y:2008:i:2:p:98-105. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Victor Matheson). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.