Where to Go Next? Examining the Effect of Franchise Expansion and Location on Game-Level Attendance in Major League Soccer

Using a large dataset with over 4,000 game-level observations from Major League Soccer over the period 2006 to 2019 we investigate the determinants of attendance demand. Focusing on franchise expansion and location effects, we find that some decisions made by the organization had positive impacts on league revenues. While going to cities with a large population and already hosting nearby NFL or NBA teams is positively associated with game attendance, the presence of geographically close MLB and NHL teams is detrimental to MLS revenues. Our results suggest a need for a more nuanced and selective approach to MLS expansion policy.

The Effect of Ownership Marketing Expertise on MLB Attendance and Digital Consumption

Scholarship has established that characteristics of a firm’s upper echelon affect firm-level outcomes in a range of industries. In professional sport, firms depend on live game attendance and, increasingly, the consumption of online content to generate local revenue. The ability to drive these two revenue streams depends on a franchise’s competencies in marketing, relationship management, and brand building. In this research, we speculate those competencies start at the top, i.e., with ownership. Using upper echelons theory (UET), we hypothesize that franchises with owners who have substantial marketing expertise are better able to drive attendance and online search traffic. Using a panel dataset of 30 teams over a 10-season period, we found that ownership expertise in marketing was generative of significantly more attendance but perhaps not significantly greater online traffic. The results are discussed in the context of UET, and implications for practitioners are presented.

The Effect of Ownership Marketing Expertise on MLB Attendance and Digital Consumption

Scholarship has established that characteristics of a firm’s upper echelon affect firm-level outcomes in a range of industries. In professional sport, firms depend on live game attendance and, increasingly, the consumption of online content to generate local revenue. The ability to drive these two revenue streams depends on a franchise’s competencies in marketing, relationship management, and brand building. In this research, we speculate those competencies start at the top, i.e., with ownership. Using upper echelons theory (UET), we hypothesize that franchises with owners who have substantial marketing expertise are better able to drive attendance and online search traffic. Using a panel dataset of 30 teams over a 10-season period, we found that ownership expertise in marketing was generative of significantly more attendance but perhaps not significantly greater online traffic. The results are discussed in the context of UET, and implications for practitioners are presented.

Do Consumer Perceptions of Tanking Impact Attendance at National Basketball Association Games? A Sentiment Analysis Approach

The use of big data in sport and sport management research is increasing in popularity. Prior research generally includes one of the many characteristics of big data, such as volume or velocity. The present study presents big data in a multidimensional lens by considering the use of sentiment analysis. Specifically focusing on the phenomenon of tanking, the purposeful underperformance in sport competitions, the present study considers the impact that consumers’ sentiment regarding tanking has on game attendance in the National Basketball Association. Collecting social media posts for each National Basketball Association team, the authors create an algorithm to measure the volume and sentiment of consumer discussions related to tanking. These measures are included in a predictive model for National Basketball Association home game attendance between the 2013–2014 and 2017–2018 seasons. Our results find that the volume of discussions for the home team and sentiment toward tanking by the away team impact game attendance.

Understanding Season Ticket Holder Attendance Decisions

Predicting attendance at events is important for efficient facility management and marketing to maximize crowds. Most work to date is conducted at the aggregate level; however, the large crowd size being predicted often means important individual decisions are masked. In many markets, increased nonattendance by season ticket holders (STHs) is being reported, which is troubling given they have prepaid and are expected to be highly loyal. To understand who attends, rather than just how many, the authors analyze the “no-show” behavior of over 5,900 individual STH of one professional team over a season. Results show that in addition to game viewing and quality conditions, age, tenure, expenditure, and prior game attendance are predictors of individual attendance decisions, with differences in how individuals are influenced by winning and uncertainty of outcome. The paper expands understanding of drivers of STH attendance decisions and provides guidance toward managerial strategies for STH management.

Predicting Season Ticket Holder Retention Using Rich Behavioral Data

Season ticket holders are a vital source of revenue for professional teams, but retention remains a perennial issue. Prior research has focused on broad variables, such as relationship tenure, game attendance frequency, and renewal intention, and has generally been limited to survey data with its attenuate problems. To advance this important research agenda, the present study analyzes team-supplied behavioral data to investigate and predict retention as a loyalty outcome for a single professional team over a 3-year period. Specifically, the authors embrace a broad range of loyalty measures and team performance to predict retention and employ novel data mining techniques to improve predictive accuracy.

Are Fair Weather Fans Affected by Weather? Rainfall, Habit Formation, and Live Game Attendance

We analyze habit formation in sports attendance utilizing rainfall as an unexpected, transitory shock to attendance costs. Using attendance data from Major League Baseball (MLB) and National Oceanic and Atmospheric Administration weather data, we analyze the impact of variation in game day weather conditions on current and future MLB attendance. The empirical strategy permits identification of both the formation and persistence of habit from exogenous weather shocks. Past adverse weather shocks increase future attendance by about 200 fans per game. This contributes to the literature developing empirical evidence of habit formation in the field and provides policy implications for optimal ticket-pricing strategies.

The Effect of Superstars on Game Attendance: Evidence From the NBA

Economic models predict that “superstar” players generate externalities that increase attendance and other revenue sources beyond their individual contributions to team success. We investigate the effect of superstar players on individual game attendance at National Basketball Association games from 1981-1982 through 2013-2014. Regression models control for censoring due to sellouts, quality of teams, unobservable team/season heterogeneity, and expected game outcomes. The results show higher home and away attendance associated with some superstar players. Michael Jordan generated the largest superstar attendance externality, generating an additional 4,837/4,236 fans at home/away games.