FiT Publishing

In January 2007, Major League Soccer (MLS) announced that international soccer sensation David Beckham would be joining the league playing for the LA Galaxy. This paper examines Beckham¡¯s effect on MLS ticket sales for the 2007 season. Depending on specification, our results indicate that Beckham increased ticket sales as a share of stadium capacity by about 55 percentage points. We then use these results to evaluate MLS¡¯s Designated Player Rule and to perform a back-of-the-envelope calculation of Beckham¡¯s benefit to the LA Galaxy.Read more

After controlling for a number of plausible influences on matchday attendance in the English Premier League, and with appropriate recognition of the censoring problem in stadium capacities, we find clear evidence that an increase in uncertainty of outcome is associated with reduced gate attendance. The conventional uncertainty of outcome hypothesis proposes precisely the opposite effect. We interpret this as suggesting that fans at EPL games, who are predominantly supporters of the home team, prefer to see their team play a much inferior team (and beat that team) rather than attend a game...Read more

Competitive balance research partitions into two areas: analyzing sports policy and its effect on competitive balance and the uncertainty of outcome hypothesis. This paper examines the latter section. No formal analysis of the relationship between competitive balance and regular season average attendance in Major League Baseball (MLB) using the actual to idealized standard deviation ratio exits. This paper examines the effect that competitive balance has on MLB attendance between the seasons 1920 and 2006. Additionally, this paper incorporates a games-behind variable to examine if fans are...Read more

This study examines the importance of team success for attendance for Major League Baseball teams. Winning and attendance go together for most baseball teams, but the direction of causation is not obvious. Winning could lead to greater attendance as fans want to see a winner; an increase in attendance could lead to greater winning as teams have greater resources to spend on salaries. This study finds that the direction of causation runs from team success to greater attendance, and that a sudden increase in fans does not lead to additional winning in the future. A secondary result suggests...Read more

The National Basketball Association claims to sell entertainment. Part of that entertainment is close, competitive contests with uncertain outcomes. However, hometown fans want the home team to win. Hence, the optimal probability that the home team wins a game, from the perspective of maximizing demand, lays somewhere between 0.5 and 1.0. Using data from individual games for the 2001-02 season, this optimal probability was estimated to be approximately 0.66. Fans want their home team to have about twice the chance to win a game as the visiting team.Read more

Although conventional wisdom holds that alcohol availability increases baseball attendance, little evidence exists on the complementarity between attendance and alcohol availability. To address this gap in the literature, we examine the effect of Rome, Georgia’s November 2004 legalization of Sunday alcohol sales on a minor league baseball team’s attendance. OLS and Tobit estimates of an attendance model find no statistically significant effect of alcohol availability on attendance. In addition to analyzing the relationship between attendance and alcohol availability, we also perform back-...Read more

Due to the growing buying power of diverse consumers and the importance of attendance to professional sports in the US, this study qualitatively examines the factors affecting African-American attendance at professional sporting events and identifies several attendance drivers and constraints, including alternative forms of commitment, atmosphere, comfort and convenience, cost, exposure and access to the sport, image and identity, performance and entertainment, social nature of sport, and value. These findings support and extend prior research by offering seven new factors affecting...Read more

Blame it on the weather? Or the economy? Even if these factors play a role in game day attendance, Larry knew there was a much bigger story behind the empty seats at Dodger Stadium. In 2011, the Los Angeles Dodgers averaged 36,236 fans per game, dropping from 43,979 in 2010 and 46,440 in 2009, an overall loss of about 10,000 fans per game in just two years (Baseball-Reference.com, 2012). In 2011, The Dodgers’ attendance ranking fell from first to eleventh in Major League Baseball (MLB), which amounted to a loss of over 800,000 tickets sold per year, as well as the resulting revenue from...Read more

Sponsorship activity has increased dramatically over the last two decades, as has customer knowledge of this promotional activity associated with experiential consumption. While a number of studies have measured consumers’ understanding of how event marketing affects their evaluation of a brand, scant empirical attention has been paid to how consumers use sponsorships as signals of event quality. In a between-subjects experimental design, main effects were found for the sponsor’s functional similarity and regression analyses suggest that the strength of the sponsors’ influence predicted...Read more

It is less than a month to opening day as Bradley Dodson, General Manager, walks through Historic Grayson Stadium with John Simmons, the owner of the Savannah Sand Gnats. They survey the renovation of the stadium, comment on all the work that has been done, and contemplate what the future holds for the Sand Gnats. Dodson has been preparing for a staff meeting to discuss where the Sand Gnats stand and how to improve the organization. As he takes a seat in the stands and peers out to left field where the bleachers have been removed and the wall still needs to be finished, he considers “What...Read more