Contents for IJSF Issue 10:1
| Entire issue of IJSF 10:4 Authors: Arne Feddersen, Babatunde Buraimo, Joachim Prinz, and Jane Ruseski, David J. Berri, Michael A. Leeds, and Peter von Allmen, Nicholas M. Watanabe, Paulo Reis Mourão and Cesar Cima, |
| Abstract:This is the entire issue in PDF format that you can download |
| Editors’ Note: A Fond Farewell, pp. 3-4 Authors: Arne Feddersen, Babatunde Buraimo, Joachim Prinz, and Jane Ruseski |
| Abstract:This issue of the International Journal of Sport Finance (IJSF) is the first under a new editorial team. So far, IJSF has experienced outstanding leadership from Dennis Howard and Bill Gerrard during the first three volumes (2006-2008) and then from Robert Simmons, Bernd Frick, and Brad Humphreys over the last six volumes (2009-2014). With the publication of this issue, we aim to follow the excellent examples set during the first nine years with Arne Feddersen assuming duties as editor and Babatunde Buraimo, Joachim Prinz, and Jane Ruseski assuming the roles of associate editors. |
| Salary Determination in the Presence of Fixed Revenues, pp. 5-25 Authors: David J. Berri, Michael A. Leeds, and Peter von Allmen |
| Abstract:The assumption that workers are paid their marginal product underlies the theory of competitive labor markets and is the basis for comparison with non-competitive markets. Many firms, however, generate revenue in fixed lump-sums that are unrelated to the efforts of current workers. For example, many professional sports receive substantial income from broadcast rights, which are negotiated at wide intervals. We develop a theory of compensation in the presence of “fixed revenue” and test our theory using data from the National Basketball Association. Our results indicate that TV revenue tends to equalize players’ salaries. Players’ performance and popularity tend to enhance players’ bargaining positions. Popularity with fans particularly helps players with greater bargaining power. |
| Sources of Direct Demand: An Examination of Demand for the Ultimate Fighting Championship, pp. 26-41 Authors: Nicholas M. Watanabe |
| Abstract:Sport demand literature notes multiple sources of demand for a sport product. Two forms of direct demand come in the form of live attendance by patrons and purchases of pay-per-view (PPV) to watch sporting contest through a television set (Borland & Macdonald, 2003). That is, attendance and PPV purchases are both direct consumption of the sporting product. Recent theoretical discussion has noted the importance understanding both live attendees and television viewers of sport events in order for organizations to behave more strategically (Budzinski & Satzer, 2011). This study attempts to examine two sources of direct demand for the Ultimate Fighting Championship (UFC), one of the most popular combat sport organizations in the world. Prior research into the UFC has provided individual examinations of single sources of demand for televised events (Watanabe, 2012) or attending events in person (Tainsky et al., 2012). This research examines events from 2001 through 2012 and finds that an individual sport product may have different determinants for live attendance and television viewership. |
| Studying the Golden Generations’ Effects and the Changes in the Competitive Balance of the Portuguese Soccer League, pp. 42-61 Authors: Paulo Reis Mourão and Cesar Cima |
| Abstract:Competitive balance is recognized as an important source of market efficiency, a fact found to be true of soccer markets, studied here. In this paper, we measure the competitive balance of the Portuguese Soccer League “Primeira Liga” using data compiled since the 1980/1981 season. Employing different measures of competitive balance, we test for trends in competitive balance using the most appropriate (considering that we are working with time series) techniques and explore how this trend had changed because of the existence of the Golden Generation of soccer players (e.g., Figo, Rui Costa, or João Vieira Pinto). We conclude that competitive balance in the Portuguese Soccer League does not exhibit a regular trend and that the Golden Generation contributed to more balanced seasons. This finding has several important implications, among them the need for Portuguese soccer leagues to increase competitive balance to ensure the sustainability of soccer wages, revenues and profits by putting special effort into the development of highly-skilled, young soccer players. |
| Reversal of Fortune or Glaring Misallocation: Is a New Football Stadium Worth the Cost to a University?, pp. 62-86 Authors: Joel G. Maxcy and Daniel J. Larson |
| Abstract:American universities, belatedly following their professional sports counterparts, are constructing new stadiums. A portion of the funds typically provided to athletic departments are drawn from general university resources. Besides increased revenue flows, indirect benefits that contribute to university objectives are typically cited as part of the demand for a new college stadium. Examples of these spillover benefits are an enhanced campus community, a higher quality student body, and more alumni donations. We analyze a university’s stadium proposal and apply standard capital budgeting techniques to the proposed stadium’s estimated cash flows. It is revealed that the project is a sound financial investment only under the most optimistic circumstances. Yet, the investment can be worthwhile to the university if the net value of the spillover benefits exceeds the financial loss. We consider all likely spillovers, and conclude that it is more likely the desired spillover benefits can be more efficiently achieved with other investment choices. |
| This Game is Being Played Under Protest, pp. 88-100 Authors: Jason A. Winfree |
| Abstract:Madden (in press) hopes that it is “Game Over” regarding the “Walrasian Fixed Supply Conjecture” and “Contest-Nash” solutions. In this paper, I argue that framing the debate as such misses the point of Winfree and Fort (2012). Furthermore, Madden (in press) argues that under certain assumptions, which need to be made, the model that follows was previously given in Madden (2011). However, I argue that Madden (2011) is one of many models that might follow and his assumptions do not hold in all leagues. |
