organizations like FanStand, were going to have to adapt to survive. How will the pandemic change the way sport technology organizations, like FanStand, generate revenue, operate, and function? Background Information Indianapolis Background Information Indianapolis is the largest metropolitan area in the state
Suzannah Armentrout, Jen Zdroik, and Julia Dutove
Mark Dodds, Larry DeGaris, Alan L. Morse, Luisa Velez-Colon, and David Perricone
Claire Monroe was challenged to increase a minor league baseball team’s revenue and was in charge of developing a marketing plan to target female baseball fans. This would be a new target market for the team. The increasing female fan base can create revenue for baseball franchises through ticket, merchandise, and concession sales, as well as connecting with sponsors who specifically target female customers. Although there are many gender similarities in regards to fan avidity, there are important differences between the sexes in terms of motivation, media, and merchandise needs. Claire must research the target audience, analyze marketing research data, and make recommendations to increase female attendance to have those women spend more money on baseball-related items.
This article uses a simple approach to address the issue of how revenue sharing in professional sports leagues can affect the allocation of free agent players to teams. To affect the allocation of free agents, the imposition of revenue sharing must alter the ranking of bidding teams in terms of maximum salary offers. Two types of revenue sharing systems are considered: traditional gate revenue sharing and pooled revenue sharing. The article suggests that team rankings for ability to pay are not affected by pooled revenue sharing, however the distribution of player salaries will be affected asymmetrically. Traditional gate revenue sharing can alter the ability to pay rankings for teams, depending upon playing schedules and the closeness of revenues between closely ranked teams. Revenue data for two professional sports leagues provide evidence in favor of the model predictions.
Sheri J. Brock, Danielle Wadsworth, Nikki Hollett, and Mary E. Rudisill
The School of Kinesiology at Auburn University is using Movband Technology to support online learning in their physical activity program. Active Auburn is a 2-hr credit course that encourages students (n = 2,000/year) to become physically active through online instruction and tracking physical activity using Movband technology. Movband technology allows for uploading and monitoring group physical activity data. The implementation of this technology has allowed the School of Kinesiology to: (a) promote physical activity on our campus, (b) serve a large number of students, (c) reduce demand on classroom/physical activity space, and (d) promote our research and outreach scholarship as well, by collecting physical activity profiles for students enrolled in the course. Students report they enjoy the course and that they appreciate the “freedom to exercise” when it best fits into their schedule. This course generates considerable revenue to support course instruction and much more for the School of Kinesiology.
Adam Karg, Jeremy Nguyen, and Heath McDonald
-day revenue and the role of attendance in both creating stadium atmosphere and providing opportunities to build fan engagement, we extend past research to examine the impact of a wide range of factors on the decision to attend. Research into no-show behavior in sport has lagged behind industry observation of
Chadron Hazelbaker and Matthew Martin
Revenues $3 million $1.7 million Total Sport Expenses $3.7 million $2.1 million Title IX In the United States, the late 1950s and early 1960s was a period of great social change. In the wake of athletes like Jackie Robinson and Althea Gibson breaking color barriers in American professional sports, the
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.
This article uses economic theory to examine the variables that affect the competitive balance in a professional sports league and the impact of revenue sharing. The generally accepted proposition that revenue sharing does not affect the competitive balance in a profi t-maximizing league has been challenged by many. It is shown that the competitive balance and the impact of revenue sharing not only depend on the relative size of the market of the clubs, but that they are also affected by the objectives of the club owners and the importance to spectators of absolute team quality and uncertainty of outcome. Furthermore, the clubs’ hiring strategies, including the talent supply conditions, turn out to be important elements affecting competitive balance and the impact of revenue sharing.
Ian S.C. Patrick, Daniel F. Mahony, and Joseph M. Petrosko
Research has indicated that need-based distributions are often perceived to be the fairest method for distributing resources in intercollegiate athletics. Mahony, Hums, and Riemer (2005) examined definitions of need and identified 3 subprinciples: need because of lack of resources, need because of high operating expenses, and need to be competitively successful. The current study examined the perceived fairness of distributions based on these subprinciples of need, equality of treatment, and revenue production, as well as the differences in perceptions based on gender, NCAA division, and scenario. Although need because of lack of resources was consistently rated as fairer than most or all of the other distribution methods, perceptions of the other methods varied based on the scenario. Further analysis indicated that men were more likely to perceive revenue production as fair, whereas women preferred equality. In addition, Division I administrators were more likely to rate need to be competitively successful and revenue production as fair.
Michael G. Wenz
This paper proposes a payroll tax and revenue sharing model for Major League Baseball that better aligns the incentives of individual team owners with league-wide goals of competitive balance and cartel profit maximization. The author demonstrates why the current system is poorly suited for improving competitive balance, then argue for a system of transfer payments based on a more aggressive payroll tax combined with a subsidy distributed based on on-field performance rather than market size or financial performance. High-payroll teams would contribute disproportionately to the revenue-sharing pool, while successful teams would receive disproportionately large subsidies. By increasing the marginal value of a win through the performance-based subsidies, small-market teams will see increased incentives to invest in playing talent. The author presents some limited financial data and suggest how to calibrate the model to yield the optimal level of competitive balance and optimal revenue split between players and owners.