Time Value of Money (TVM) is an essential concept within finance, yet its fundamentals confuse many students. This case offers the TVM Decision Tree to guide students to logical solutions through a step-by-step approach that requires critical thinking about cash flows. Students follow a sport agent as she reviews contract offers for her client. She received four offers with payments structured in wildly different ways, including single payments, growing annuities, and delayed annuities. She must use her knowledge of TVM and the TVM Decision Tree to determine which contract will provide her client with the largest contact in terms of PV. She will find that the contracts with the largest nominal values are not necessarily worth the most in terms of PV. She will also see the impact that different discount rates can have in making her decisions, as well as learn about deferred compensation within professional sports.
B. David Tyler and Joe Cobbs
Rivalry is ubiquitous across sports, yet the representation and specification of rivalry varies widely. Such discrepancy poses problems when distinguishing between multiple out-groups and when employing rivalry to explain related questions such as demand for sport consumption. In this paper, we critically examine the many differing conceptions of rivalry and to discern properties of rivalry across different sports. We survey college football fans (N = 5,304) to empirically test the exclusivity, scale, and symmetry of rivalry; then, we replicate the study twice in the context of professional sports (1,649 National Football League fans; 1,435 National Hockey League fans). Results consistently indicate that fans perceive multiple rivals (nonexclusive), rivalry intensity varies among rivals (continuous in scale), and opposing fans rarely share equivalent perceptions of the rivalry (bidirectional). Accordingly, we develop and test a parsimonious 100-point rivalry allocation measure that specifies these three properties of rivalry.
Sheranne Fairley and B. David Tyler
Sport fandom, particularly game attendance, offers an opportunity for social interaction. However, actual attendance at sport events is unrealistic for many individuals. In an attempt to foster a sense of community among such fans, sport marketers have begun to create additional consumption sites by televising live games in central locations, such as in a movie theater. This study examines the motives and experiences of fans who attend a cinema to view live baseball games. Data were collected through participant observation, a survey distributed to event attendees (n = 188), and focus groups. Results suggest that the sense of community and social environment created at the cinema were key factors in the viewing experience. The cinema provided individuals a collective viewing experience with likeminded fans, which helped create a stadium-like environment. This atmosphere, which affords the opportunity to focus on the game (compared with viewing at home or in pubs), allows fans to feel more connected to the team as they believe the cinema offers an authentic environment. Thus, providing sites for fans to view the game with likeminded fans outside of the stadium can be used as a means of creating social ties that could lead to increased fan loyalty. For some individuals, the cinema experience was preferred over that of the ballpark.
Matthew Katz, Aaron C. Mansfield, and B. David Tyler
Sport management researchers have increasingly noted a relationship between sport spectatorship and well-being, with the line of inquiry predicated on transformative sport service research. In this study, the authors contribute to transformative sport service research by utilizing multilevel egocentric network analysis to examine the consumption networks of National Football League fans over the course of one season. The authors utilized a network theory approach to explore how emotional support is created and embedded within sport fans’ networks of interpersonal ties and social relationships. Through multilevel modeling, the authors highlighted how attributes of both the ego (i.e., focal actor) and alter (i.e., individual with whom ego shares a tie) affect emotional support. Previous studies of transformative sport service research and the link between well-being outcomes and sport spectatorship have implicitly examined only ego-level attributes (i.e., team identification), yet the present work suggests that emotional support depends on the interpersonal ties and network structures within which sport fans are embedded.
B. David Tyler, Steve C. Morse, and Ryan K. Cook
Small-scale sporting events play an important role in bringing tourists to destinations. In this case, students take the role of the fictional national events director for EVP Beach Volleyball as he analyzes hotel data from three destinations to determine which locale would most benefit from EVP’s participants and fans. The primary goal is for students to learn to conduct basic analysis on a large, real dataset using Microsoft Excel. A second goal is to introduce students to the key performance indicators of the hotel industry: Occupancy Rate, Average Daily Rate (ADR), and Revenue Per Available Room (RevPAR). These metrics are central to hoteliers’ daily operations and familiarity with them will help students speak that language when interacting with people in the field. Thirdly, the case introduces key concepts surrounding the economic impact of sport events, particularly relating to the value of visitor spending.
Joe Cobbs, B. David Tyler, Jonathan A. Jensen, and Kwong Chan
Accessing and exploiting organizational resources are essential capabilities for competitive sport organizations, particularly those engaged in motorsports, where teams lacking resources frequently dissolve. Corporate sponsorship represents a common method for resource acquisition, yet not all sponsorships equally benefit the sponsored organization. Sponsorship utility can be dependent on institutional dynamics such as league governance that produces competitive disparities. Through this study we extend the resource-based view to assert that sponsorships vary in their propensity to contribute to team survival, warranting prioritization in sponsorship strategy based on access to different sponsor resources. To empirically investigate the influence of a variety of sponsorships, survival analysis modeling was used to examine 40 years of corporate sponsorship of Formula One racing teams. One finding from the longitudinal analysis was that sponsorships offering financial or performance-based resources enhance team survival to a greater degree than operational sponsorships. However, such prioritization is subject to team experience, changes in institutional monetary allocation, and diminishing returns.