Determinants of audience demand for the televised professional baseball matches in Korea

2019 ◽  
Vol 20 (1) ◽  
pp. 184-202 ◽  
Author(s):  
Yoonji Ryu ◽  
Kihan Kim ◽  
Jong Won Paik ◽  
Yunjae Cheong
Keyword(s):  
Professional Sports ◽  
Third Party ◽  
Professional Baseball ◽  
Related Factors ◽  
Proper Understanding ◽  
Content Type ◽  
Sports Clubs ◽  
Dependent Variables ◽  
Sports Leagues ◽  
Television Ratings

PurposeThe purpose of this paper is to examine factors influencing the audience demand for televised post-season games of the Korean professional baseball league.Design/methodology/approachThe data were collected from a total of 129 games – the entire post-season games from 2008 to 2016. Two dependent variables representing audience demand for televised baseball matches, obtained from the third-party television audit company AGB Nielsen, were regressed on a series of match-related and unrelated antecedent factors associated with each match. Pooled OLS regression with wild bootstrap standard errors with 100,000 replications was applied in the analysis.FindingsRegarding match-related factors, higher television ratings and the greater numbers of television viewers were associated with matches with greater significance, outcome uncertainty and score sum. In terms of the match-unrelated factors, the broadcast platform appeared to be the most powerful predictor of both television ratings and the numbers of viewers. Other than the broadcast platform, night matches, matches with full stadium occupancy and team values showed positive impacts on both the television ratings and the numbers of viewers.Practical implicationsThe sales of media rights and sponsorships are the major sources of revenues for professional sports leagues, and the size of these two streams of revenues is in proportion to the size of the audience demand for television and other media. This study provides valuable insights to the sports marketers of professional sports clubs and leagues by establishing proper understanding of the determinants of the audience demand for televised sports.Originality/valueThe characteristics specific to each professional league and country play unique roles in determining the antecedent factors of audience demand for televised sports; this study is one of the few attempts to examine Koran professional baseball league.

Dynamic pricing usage in sports for revenue management

2016 ◽  
Vol 42 (9) ◽  
pp. 913-921 ◽  
Author(s):  
Adrien Bouchet ◽  
Michael Troilo ◽  
Brian R. Walkup
Keyword(s):  
North American ◽  
Dynamic Pricing ◽  
Professional Sports ◽  
Business Analytics ◽  
Content Type ◽  
Sports Organizations ◽  
Decision Making Processes ◽  
Sports Leagues ◽  
Job Title ◽  
Travel Services

Purpose The purpose of this paper is to examine the extent to which dynamic pricing is utilized in North American professional sports. While industries such as airlines and travel services have employed dynamic pricing for decades, professional sports is only now starting to adopt it. Design/methodology/approach The authors survey and interview high ranking executives and managers in North American sports organizations. A total of 72 managers and executives from the four major North American professional sports leagues as well as other sport properties were surveyed. Descriptive statistics and a basic regression provide insight into perceptions v. actual practice among sports organizations. Findings While most sports organizations perceive high usage of dynamic pricing within their organization, current procedures lag. Nearly 70 percent of respondents believe that their organizations frequently or always apply business analytics to dynamic pricing, but only 30 percent update their prices daily. Fully 50 percent of organizations do not automate decision-making processes, which is a hallmark of dynamic pricing. The perception of constant use of analytics in dynamic pricing intensifies as job title increases. Originality/value As one of the initial surveys looking at the usage of dynamic pricing in North American professional sports, this study provides a glimpse into both the perception and the reality. It suggests that there is still ample room for improvement.

NFL team revenue distribution and revenue sharing: a median voter theorem

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Justin Ehrlich ◽  
Shankar Ghimire ◽  
Shane Sanders
Keyword(s):  
Design Methodology ◽  
Median Voter ◽  
National Football League ◽  
Professional Sports ◽  
Revenue Sharing ◽  
Content Type ◽  
Median Voter Theorem ◽  
Sports Leagues ◽  
Average Revenue ◽  
Professional Sports Leagues

PurposeRevenue sharing is ubiquitous among North American professional sports leagues. Under pool revenue sharing, above-average revenue teams of a league effectively transfer revenues to below-average revenue teams. Herein, the authors find and prove that a league will vote into policy a pool revenue sharing arrangement if and only if mean team revenue is greater than presharing median revenue, where this condition is equivalent to the presence of positive nonparametric skewness in a league’s distribution of team revenues. This represents a median voter theorem for league revenue sharing.Design/methodology/approachThe authors consider the case of revenue sharing for the National Football League (NFL), a league that pools and equally shares national revenues among member teams.FindingsThe authors find evidence of positive and significant nonparametric skewness in NFL team revenue distributions for the 2004–2016 seasons. This distribution is observed amid annual majority rule votes of League owners in favor of maintaining the incumbent pool revenue sharing model (as opposed to no team revenue sharing). Distribution of revenues – namely the existence of outlying large market NFL teams – appears to consistently explain the historical popularity of NFL revenue sharing.Originality/valueThe median voter theorem uncovered in the case of NFL applies to all professional sports leagues and can be used predictively as well as descriptively.

scholarly journals Online Webcast Demand vs. Offline Spectating Channel Demand (Stadium and TV) in the Professional Sports League

2020 ◽  
Vol 12 (23) ◽  
pp. 9906 ◽  
Author(s):  
Yan Feng ◽  
Jinbao Wang ◽  
Yeujun Yoon
Keyword(s):  
Team Performance ◽  
Professional Sports ◽  
Professional Baseball ◽  
Sports Fans ◽  
Interactive Communication ◽  
Random Coefficient Model ◽  
Sports Leagues ◽  
Relationship Of ◽  
The Impact ◽  
Professional Sports Leagues

This study investigates the online spectating behavior of sports fans. Due to the great mobility and low opportunity/switching costs, webcast sports fans’ spectating behaviors are distinct from those associated with traditional spectating channels such as stadium attendance or TV viewership. We explore the unique characteristics of online webcast demand in professional sports leagues by rigorously modeling all three spectating choices of sports fans. To consider the substitute relationship of the three spectating choices simultaneously, we employ a BLP (Berry–Levinsohn–Pakes)-style random coefficient model. For the analysis, we collect a comprehensive game-level dataset from the Korean Professional Baseball Organization (KBO) League fan samples from three different channels: online webcast viewership, stadium attendance, and TV viewership. We find that the demand for online webcasts is distinctive compared to that of traditional spectating channels. Notably, we find that the impact of team performance is three times stronger than that of TV viewership demand and that the impact of game quality is four times stronger than that of attendance demand. In contrast, a nonperformance variable is relatively less effective in attracting sports fans to online broadcasting. Furthermore, we find evidence of a strong retention effect of online webcast viewers. Our findings indicate that the previous spectating experience of online webcasts increases the next-time choice of sports fans for the webcast because the genuine spectating experience with distinctive webcast services (such as real-time interactive communication or various supplementary programs) can induce consumers to revisit the channel.

The cost of players’ injuries to professional sports leagues and other sports organizations

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bhavneet Walia ◽  
Christopher John Boudreaux
Keyword(s):  
Primary Source ◽  
Professional Sports ◽  
Treatment Costs ◽  
Content Type ◽  
Sports Organizations ◽  
Direct Treatment ◽  
Sports Leagues ◽  
Playing Time ◽  
The Cost ◽  
Professional Sports Leagues

PurposeMost literature studies have focused on direct treatment costs of injuries. This literature is extended to include the foregone playing time of players as an additional injury cost.Design/methodology/approachThe authors have reviewed the literature on the cost of players’ injuries to professional sports leagues and other organizations.FindingsThe authors concluded that players’ injury costs are substantial and sufficiently variable to be a primary source of financial uncertainty for a team.Originality/valueThis study's value has added risk pooling and league-wide revenue sharing as tools to mitigate the risk of injury costs. Previous literature reviews focused predominately on direct treatment costs.

How are we funding professional sports stadiums? An overview

2016 ◽  
Vol 42 (9) ◽  
pp. 885-890 ◽  
Author(s):  
Abhinav Alakshendra
Keyword(s):  
Federal Government ◽  
State Government ◽  
Public Funding ◽  
Professional Sports ◽  
Content Type ◽  
Public Subsidy ◽  
Sports Stadiums ◽  
Vast Literature ◽  
Sports Leagues ◽  
Almost All

Purpose American taxpayers heavily subsidize professional sports leagues and teams through direct and indirect public funding to build professional sports stadiums. Today, the proportion of public funding to build professional sports stadiums is greater than private contribution. In last 20 years, almost all of the 100 professional stadiums opened have received some form of direct or indirect financial assistance from local, state and federal government. The paper aims to discuss these issues. Design/methodology/approach This paper investigates and documents most often used methods of stadium financing in recent years along with the historical shift from privately built stadiums to public funded stadiums in the span of 65 years. This paper also briefly reviews the literature evaluating the impacts of public spending for professional sports stadiums. The vast literature on the topic reveals that economists and city planners agree that public subsidy to build expensive professional sports stadiums cannot be justified on the grounds of perceived economic development. Findings Over the years, funding mix to build professional sports facilities has changed dramatically. Local government has been coming up with various financing strategies involving new and old instruments. Originality/value The findings also suggest that share of local and state government has gone up in recent years compare to federal government share.

The corporatisation of football and CSR reporting by professional football clubs in Europe

2019 ◽  
Vol 20 (2) ◽  
pp. 242-257
Author(s):  
João Ribeiro ◽  
Manuel Castelo Branco ◽  
João Alves Ribeiro
Keyword(s):  
Design Methodology ◽  
Professional Sports ◽  
European Countries ◽  
Content Type ◽  
Csr Reporting ◽  
Football Clubs ◽  
Sports Leagues ◽  
Corporate Social ◽  
Different Levels ◽  
Professional Sports Leagues

Purpose The purpose of this paper is to examine differences in corporate social responsibility (CSR) reporting on the websites of football clubs based in five European countries with different levels of football corporatisation. Design/methodology/approach The study examines CSR reporting on the internet by football clubs based in five European countries. Multiple regression analysis is used to analyse some factors which influence reporting and test a set of hypotheses. Findings The findings suggest that clubs from countries in which the level of corporatisation is higher disclose more CSR information. Also, clubs with higher public visibility disclose a higher variety of CSR information. Originality/value This study adds to the scarce research on CSR reporting in professional sports leagues by providing new empirical data and by extending prior research comparing such practices within different international frameworks of CSR.

scholarly journals Value creation models in the 3PL industry: what 3PL providers do to cope with shipper requirements

2017 ◽  
Vol 47 (6) ◽  
pp. 472-494 ◽  
Author(s):  
Gino Marchet ◽  
Marco Melacini ◽  
Sara Perotti ◽  
Chiara Sassi ◽  
Elena Tappia
Keyword(s):  
Business Model ◽  
Value Creation ◽  
Third Party ◽  
Exploratory Research ◽  
Related Factors ◽  
Operational Strategies ◽  
Content Type ◽  
The Third Party Logistics ◽  
Qualitative Survey ◽  
Comprehensive Framework

Purpose The resources and mechanisms required to complete a value proposition are generally considered as crucial aspects in designing a company business model. However, research in the third party logistics (3PL) arena concerned with studying how 3PL providers define their value creation architecture to meet different shippers’ requirements has so far been inadequate. The purpose of this paper is to fill the gap, providing a detailed investigation on how the 3PL providers’ capabilities and logistics expertise can add value to their shippers’ processes. Design/methodology/approach A qualitative exploratory research was conducted involving, first, a systematic combining process to understand the main factors and operational strategies whereby 3PL providers can create value and build a comprehensive framework of their value creation architecture. Second, a qualitative survey was conducted on 44 leading 3PL providers operating in Italy to understand how these providers can organise themselves to create value for shippers. Findings The 3PL providers’ value creation architecture is presented within a clear and comprehensive framework, together with 30 potential operational strategies that can be used by 3PL providers and the related factors that enable value to be created for shippers. Three main value creation models (volume-oriented 3PL providers, process-oriented 3PL providers and innovation-oriented 3PL providers) are identified. The importance of the different factors enabling value creation is highlighted for each model, identifying the distinctive operational strategies and those adopted most frequently. Practical implications From a managerial perspective, 3PL providers will find these results useful for developing suitable strategies to compete on the market. From their side, shippers can understand and evaluate how 3PL providers are able to offer value to their logistics processes, allowing them to select the logistics partner who best fits their needs. Originality/value The present paper fulfils the identified need of examining the 3PL providers’ business model in detail. A set of distinct value creation models is identified and thoroughly investigated to reveal the different competitive advantages available to shippers.

scholarly journals A recipe to control the first wave of COVID-19: More or less democracy?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Juan Dempere
Keyword(s):  
Mortality Rate ◽  
Response Time ◽  
Success Factors ◽  
Explanatory Power ◽  
Social Constraints ◽  
Outbreak Response ◽  
Related Factors ◽  
Content Type ◽  
Daily Average ◽  
Dependent Variables

Purpose This research aims to study some national government success factors at controlling the first wave of COVID-19. The author placed special attention on democracy-related factors. Design/methodology/approach A sample of 156 countries were studied during the first half of 2020 and their government effectiveness was analyzed regarding six dependent variables, namely, the government’s daily average of stringency index, the outbreak response time, the daily average of cases and deaths per million, the daily average of tests per thousand and the mortality rate. Findings The study finds that countries with the highest democracy indexes applied the softest social constraints measured by the daily average stringency index. These countries suffered a more severe pandemic impact confirmed by the highest daily averages of cases and deaths per million and the highest mortality rate. Similarly, these countries exhibited the shortest outbreak response time and the most extensive daily average tests per thousand. Research limitations/implications The limitations of this study include lack of universal consensus for the dependent variables’ definitions, inconsistencies in how countries record COVID-19 deaths, differences in testing efforts, variances on health services, unreliable data from less democratic countries and so on. Originality/value To the best of the author’s knowledge, no previous research paper has studied the explanatory power of the author selected government success factors at controlling the first wave of COVID-19, which constitutes this study’s original contribution.

Confronting the Problems of Professional Sports: A Public Policy Response to Franchise Relocation and Stadium Subsidization

2005 ◽  
Vol 1 ◽  
Author(s):  
Taylor F Brinkman
Keyword(s):  
Local Community ◽  
Professional Sports ◽  
The United States ◽  
Direct Result ◽  
Sports Organizations ◽  
Sports Leagues ◽  
Sports Finance ◽  
Sports Venues ◽  
Benefits And Costs

During the past decade, forty-six professional sports venues were constructed in the United States, while only 16 expansion teams were created by the major sports leagues. Nearly two thirds of these newly built stadiums and arenas were funded with public tax revenues, despite substantial evidence showing no positive economic impact of new sports stadium construction on local communities. In reviewing the economic literature, this article investigates the role of professional sports organizations in the construction and public subsidization of new sports venues. Franchise relocation and public stadium subsidization is a direct result of the monopoly power of professional sports leagues, whose franchise owners extract large subsidies from their host communities by threatening to relocate to viable alternative locations. After explaining how the most common methods of stadium subsidization project a disproportionate allocation of the benefits and costs of hosting a professional team to local community interests, this article outlines several considerations for local policymakers who seek to reinvigorate public discussion of equity concerns in professional sports finance.

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