Abstract
Abstract
Profitability of American Professional Team Sports
By Brian Goodman
I analyze the effects of market and team factors (including city
population, city income, age of stadium,
percent of stadium subsidies, regular season wins, number of
all-stars, average points per game,
historical championship appearances, and previous season's
performance) on the amount of profits for
a sports franchise in the National Football League, National
Basketball Association, Major League
Baseball, and the National Hockey League. I find that there is no
consistent correlation with city income
and a franchise's profitability across the four leagues.
Furthermore, average points scored per game
appears to be positively correlated with profits. Most
significantly, I find that for all but one league the
age of the stadium are negatively correlated with a team's level of
profitability. I hypothesize this can
largely be attributed to luxury suite revenue which is not included
in any of the league's Collective
Bargaining Agreements during the period of the study,
1991-2008.
Table of Contents
Table of Contents
I.
Introduction
1
II.
Monopoly Powers
2
III.
Literature Review
5
IV.
Model
10
V.
Summary Statistics
14
VI.
Tables
16
VII.
Results
17
VIII.
Conclusion
22
IX.
References
26
About this Honors Thesis
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