The Little State University Athletic Department faces an immediate budgeting crisis. Due to state budgeting woes, the legislature has reduced its allocation to Little State significantly for the upcoming year. The impact of this reduction included a loss of $800,000 to the athletic department, which represents approximately ten percent of the athletic budget. LSU Athletic Director Beth Duncan must determine how to best make the necessary cuts while preserving a strong department and minimizing the impact on student-athletes.
Chad D. McEvoy and Dianna P. Gray
Nels Popp, Terry Eddy and Chad McEvoy
In this case study, readers are placed in the role of a National Collegiate Athletics Association (NCAA) Division I Athletics Director and challenged to consider the issue of selling the corporate naming rights to the department’s premier on-campus sports venue. Readers are exposed to a myriad of issues impacting such a decision and must weigh out such factors as: (a) the appropriateness of corporate commercialization in college athletics, (b) the pressure to balance a tight athletic department budget, (c) the impact of changing a facility name which holds significant nostalgic value to the fan base, (d) what type of sponsors might be an appropriate fit for a corporate naming rights sponsorship, and (e) what are the current trends among sport facility naming rights within college athletics. The case study is supported by many scholarly research citations but also includes important appendices, including a database of 44 current college athletic facility naming rights deals, populated with key variables. This database will assist readers in the difficult process of attempting to value naming rights for a fictional facility depicted in the case study.
Daniel A. Rascher, Mark S. Nagel, Matthew T. Brown and Chad D. McEvoy
A fundamental belief in professional sport leagues is that competitive balance is needed to maximize demand and revenues; therefore, leagues have created policies attempting to attain proper competitive balance. Further, research posits that objectives of professional sport teams’ owners include some combination of winning and profit maximization. Although the pursuit of wins is a zero sum game, revenue generation and potential profit making is not. This article focuses upon the National Football League’s potential unintended consequences of creating the incentive for some teams to free ride on the rest of the league’s talent and brand. It examines whether an owner’s objectives to generate increased revenues and profits are potentially enhanced by operating as a continual low-cost provider while making money from the shared revenues and brand value of the league. The present evidence indicates that, overall, being a low-cost provider is more profitable than increasing player salaries in an attempt to win additional games.
Daniel A. Rascher, Chad D. McEvoy, Mark S. Nagel and Matthew T. Brown
Sport teams historically have been reluctant to change ticket prices during the season. Recently, however, numerous sport organizations have implemented variable ticket pricing in an effort to maximize revenues. In Major League Baseball variable pricing results in ticket price increases or decreases depending on factors such as quality of the opponent, day of the week, month of the year, and for special events such as opening day, Memorial Day, and Independence Day. Using censored regression and elasticity analysis, this article demonstrates that variable pricing would have yielded approximately $590,000 per year in additional ticket revenue for each major league team in 1996, ceteris paribus. Accounting for capacity constraints, this amounts to only about a 2.8% increase above what occurs when prices are not varied. For the 1996 season, the largest revenue gain would have been the Cleveland Indians, who would have generated an extra $1.4 million in revenue. The largest percentage revenue gain would have been the San Francisco Giants. The Giants would have seen an estimated 6.7% increase in revenue had they used optimal variable pricing.
Jonathan A. Jensen, Brian A. Turner, Jeffrey James, Chad McEvoy, Chad Seifried, Elizabeth Delia, T. Christopher Greenwell, Stephen Ross and Patrick Walsh
Published 4 decades ago, “Basking in Reflected Glory: Three (Football) Field Studies” (Cialdini et al., 1976) is the most influential study of sport consumer behavior. This article features re-creations of Studies 1 and 2, exactly 40 years after the original publication. The results of Study 1 were reproduced, with participants more than twice as likely to wear school-affiliated apparel after wins and 55% less likely after losses. The study also extends the BIRGing literature in its investigation of the influence of gender and the effect’s salience over time. Study 2’s results were not reproduced. However, study participants were significantly more likely to use first-person plural pronouns, providing further empirical evidence of BIRGing behaviors. This article makes a novel contribution to the sport consumer behavior literature by advancing the study of one of the field’s most foundational theories and serving as an impetus for future investigations of BIRGing motivations.