We consider three professional sports and examine if there is a disparate return response to free agent signings with small versus big market franchises. After controlling for player ability, contract characteristics, and negotiation conditions, we find evidence of a more pronounced negative small market effect in response to both basketball and baseball signings, and a more pronounced negative big

The paper investigates the variety of peer effects on individual performance in a team sport. The individual performance of more than 5,000 soccer players, from 234 teams, between 2010 and 2015, is measured with the help of the FIFA video game simulator developed by EA Sports. The study reveals positive peer effects on individual performance although the marginal benefit decreases. Additionally, team

Contestants enter a risky contest when pursuing a sports career or choose a secure outside option. If contestants enter this contest but their sports career fails, they may have asymmetric career opportunities outside of sport. Greater opportunities reduce the risk of entering this contest. However, contestants’ incentives to exert effort decrease. Two types of equilibria exist if the initial pool

Because maximizing stadium attendance demand is of utmost importance, for both sports economists and sport management researchers, understanding the potential determinants of such demand better has become a priority in the last decades. Here, conducting a systematic scoping review, we map this previous research in terms of its characteristics, its nature, and its volume, thus offering a concise perspective

This paper empirically examines the determinants of Summer Olympic success during the period 1996-2016. By modifying the panel Tobit estimator using the Mundlak transform, the results find that population size and the host effect are the only statistically significant determinants of Olympic attainment. We also show that participating in front of a home crowd will stimulate athletic performance equally

This paper exploits a sharp regression discontinuity design to identify the causal impact of the Scottish Premiership League (SPL) “split” on spectator match attendance. We use data drawn from all 19 completed seasons for which this institutional arrangement has been in place. The causal effect of the “split” is to induce, for the last five rounds of games played in the season, a differential in average

Previous research examines head football coaches’ salary only using aggregate athletic department revenues. Using detailed football program fixed and variable revenues provided in the NCAA Membership Financial Reporting System data, head football coaches signing either new and modified contracts are able to capture both variable and fixed revenues when negotiating salaries. Additionally, for the two

This study uses Google Trends data to analyze the impact of the main events in the Tour de France 2019 on cyclists’ online popularity in 12 countries and at a global scale. A fixed effects panel model revealed a strong own-country preference. While online popularity increased with the duration of the Tour, race incidents strongly influenced online popularity. Besides the yellow jersey, winning a stage

We contribute to the happiness literature by analyzing the causal relationship between sports and happiness. Using longitudinal data from the German Socio-Economic Panel (GSOEP), we find a positive correlation between sports participation and reported life satisfaction. This relationship is stronger at younger and older ages than in middle age, and for people in bad health compared to those in average

The 2011 NFL collective bargaining agreement introduced significant changes to rookie compensation, including a rookie wage scale. We test if the new rules changed how sunk costs affect utilization for drafted rookies. Our regression discontinuity results show a robust sunk-cost fallacy that is similar in magnitude to the one documented under the previous agreement. Second-round selections play significantly

We consider correlations between pairs of teams when deriving a win production function for professional baseball teams. Previous empirical studies derived win production estimates based on the assumption that the error terms were independent, but this is not reasonable given that a win is a relative output. The total number of wins per season is fixed: all teams share wins, in that a win for one team

This paper provides a novel contribution to studies of race and labor-market outcomes by using fantasy football statistics as a measure of performance across offensive skill positions and arrest data as a proxy for negative off-the-field behavior. We investigate whether the determinants of salaries and employment vary between 2005-06 and 2015-16, as the 2011 collective bargaining agreement (CBA) introduced

This paper contributes to the expanding literature that investigates the effects of the introduction of a three-points-for-a-win rule in football. To this end, it provides empirical evidence of the effect of the rule on Italy’s most prestigious football league. Our analysis uses data collected over a long period of time and relies on pooled regressions and a regression discontinuity design. The findings

This paper examines the relative performance and access to mounts of female jockeys in American horseracing, the only major professional sport where female and male athletes directly compete on a regular basis. We modeled the determinants of the probability for a jockey finishing a race “in-the-money”—placing first, second, or third, and the determinants for receiving mounts. Among other findings,

Professional teams and leagues claim new stadiums lead to economic development. To test this, we utilize data from the Census Bureau on net establishment and employment changes across 871 Metropolitan and Micropolitan Statistical Areas from 2004 to 2012. Difference-in-differences and panel data techniques allow for a cross-sectional and time series comparison for both teams and new stadia in both professional

This paper compares the predictive accuracy and efficiency of college football point spreads for regular and bowl games. We find that the betting line spread is more accurate as a predictor of the eventual winner for college football games during the regular season than for the bowl games. Although the betting market is mostly efficient with regard to the favorite covering the spread, we do find several

This study examines how running performance (intensive runs, total distance covered) of football teams in previous games impacts betting markets as it relates to expected win probability. Theoretically, bookmakers could interpret team’s running performance as effort or fatigue, with sports science studies suggesting that distance covered reflects effort and intensive runs signal fatigue. Using data

Estimating the causal impact of sport or physical activity on health and well-being is an issue of great relevance in the sport and health literature. The increasing availability of individual level data has encouraged this interest. However, this analysis requires dealing with two types of simultaneity problem: (1) between exercise and response variables; and (2) across the different response variables

We examine loss aversion in the context of professional golf at US Open tournaments. In particular, we analyze data from two courses, Pebble Beach Golf Links and Oakmont Country Club, where they have hosted six and five US Opens, respectively. The United States Golf Association changed the par rating of a hole on each course from a par 5 to a par 4, without fundamentally altering the hole, in each

This paper uses a unique dataset containing more than eight years of daily data to examine the effect of the Super Bowl on hotel room rentals, rates, and room revenue in four recent host cities. The findings include (1) the net gain in rentals is considerably fewer than the gross number of rooms rented, (2) benefits are heterogeneous across cities, (3) the areas that benefit are not always those located

Using data from 2006 to 2019, we show that performance in the NBA Summer League can be used to predict regular season performance for NBA rookies. This result is indicated by general performance (win shares) and also by individual performance measures; for example, players who score more points than anticipated in the Summer League are also more proficient scorers as NBA rookies. Our findings suggest

Data from 16 years of NBA All-Star Games shows star power has two components. First, fans are drawn to live games featuring players whose current play is at a historically high skill level. Second, fans display attachment based on geographical proximity to a team, local superstar recognition, and team success. All-Star games are exhibitions with a roster of different levels of high skill level and

Seeding in tournaments is a process of creating a schedule based on performance in the recent past. It is used in many athletic disciplines to ensure that particularly attractive match ups do not occur until the later stages of the tournament. We exploit the discontinuous nature of the seeding system in the UEFA Champions League and the UEFA Europa League as a natural experiment to estimate the causal

Does hosting a sports team boost the visibility of a city among tourists? I test this proposition by looking at the effect of playing soccer’s UEFA Champions' League on air travel. I compare routes across cities that had their teams randomly drawn into the same group in the first phase of the competition to routes across cities hosting teams randomly allocated to different groups. The average effect

Sporting leagues have various competitive balance measures including player drafts, where teams are awarded picks based on prior performance. Teams, however, have the option to either exercise this pick or trade it as they see fit. An analysis of this trading market in the NFL stated that players obtained through traded picks contributed more to their recruiters in comparison to their counterparts

Players selected in the annual Major League Baseball First-Year Player Draft have a choice of whether to enter the system or pursue a career outside of professional baseball. As with any choice, there are opportunity costs associated with their decision. The purpose of this study was to analyze those opportunity costs by comparing draftees’ expected, non-signing-bonus income to the income of standard

This paper challenges the traditional seeding regime of round-robin tournaments that aims to create balanced groups. In particular, the design of the most prestigious European men’s handball club competition is compared to two alternative formats with equally strong groups via simulations. We find that it is possible to increase the quality of all matches played together with raising the uncertainty

This study looks at the impact of a university making a surprise (“Cinderella”) run in the men’s NCAA basketball tournament. Our results suggest that surprise success in the tournament has little to no impact on the quantity of applications in subsequent years. However, we find that freshmen enrollments increase for private schools two academic years after a Cinderella run (with mixed results on the

The National Football League’s (NFL) television ratings decreased by approximately 8% during the 2016 season, then a further 10% the following season. These declines coincided with league-wide national anthem protests initiated by Colin Kaepernick at the beginning of the 2016 season. Existing research identifies many determinants of demand for sporting events, but athletes’ protests are seldom considered

Ranking mobility belongs to the indicators of dynamic long-term competitive balance, as it is based on season to season changes in league rankings. If the uncertainty of outcome hypothesis holds at the league level, ranking mobility might increase demand for league games. This assumption is tested by using panel regression models on data of 19 European domestic soccer leagues. Ranking mobility is found

The paper investigates home advantages in skeleton. Our study broadens home advantage literature by providing models and estimation strategy applicable to other individual sports with tracks or courses such as biathlon, cross country skiing, etc. We identified two sources of advantages: support from the crowd; familiarity with the track. In the Olympics and the World Championships, home advantage leads

We model a soccer match between two heterogeneous teams as a two-stage contest where each team chooses its attacking and defending effort for each half of the match. We characterize the optimal teams’ efforts as well as the optimal effort allocation between offense and defense. In contrast to the theoretical literature on soccer we show, for example, that the leading team may preempt its competitor

This article examines attendance at league soccer matches before and after hosting an international soccer competition (the FIFA World Cup or the UEFA European Championships). We find significant increases in attendance at clubs that host games in these tournaments. We find smaller but often significant increases in attendance at other league clubs, suggesting that these events may drive fan interest

We test whether human capital deterioration is a function of employer decision making with respect to workload allocation. We examine this question in the context of National Football League running backs, where the structure of nonguaranteed employment contracts has the potential to create divergent incentives for franchises and players. We empirically test how employer-assigned workloads impact changes

The last few years have seen a resurgence of very long, very expensive guaranteed contracts in Major League Baseball. Commentators who examine the outcomes of earlier long-term contracts generally conclude that teams greatly overpay in these situations. These assessments suffer from the use of perfect hindsight, however. In this article, we estimate the economic gain that could be anticipated at the

We estimate a system of demand equations for three aggregate characteristics of a football game—quality of the teams, outcome uncertainty, and schedule—based on the estimation of a hedonic price model for the ticket price of a football match using data from the Spanish football league. We conclude that all three characteristics are not inferior goods (quality as a luxury), and they are price inelastic

This paper assesses the effect of the crowd size on home team advantage, using a natural experiment occurred in Brazilian football. In 2015, the Brazilian Football Confederation (CBF) quasi-randomly assigned games to be played under an alternative schedule on Sundays at 11 a.m. This measure significantly increased attendance in assigned games. Using this alternative schedule as an instrumental variable

There is significant debate about compensation of college athletes in revenue generating sports. In college football, the potential heterogeneity in player value has received little attention in the discussion. The relationship between player quality, team performance, and sport-specific revenue should inform any compensation scheme for college football players. In this article, we provide estimates

Kelly staking has been proven to maximize long-term bankroll growth of bettors with positive expected yield (profitable bettors). However, it demands for an estimation of the true probabilities for each event. Thus, many sport tipsters opt for simpler flat (unit-loss) or unit-win staking plans. We analyze under which assumptions these strategies correspond to the Kelly method and propose a different

This study provides an experiment to examine whether announcer gender impacts audience demand. With special attention to literature detailing the role of women in sports, sports economics, as well as uses and gratifications theory, this study provides an experiment wherein participants watched a sporting event announced by a man or a woman. Afterward, the participants responded to questions regarding

This study analyzes how the importance of a game, or characteristics of the previous game, impacts college football games. The results show that rivalry games are harder to predict, and the strength of the previous opponent influences the outcome of the game. If a team’s previous game was close, this negatively influences the team. There is no evidence that the previous game’s location or a team’s

Existing literature on the economic impact of sports facilities fails to consider whether new facilities positively affect existing businesses. To fill this gap, data on existing establishments in Sacramento, CA, active from 2004 through 2018 were collected. The outcome of interest is existing businesses’ survival time. Using an accelerated failure time model in a difference-in-difference framework

This research examines the impact of defensive coordinators and head coaches on team defensive performance in the National Football League (NFL). We find that elite and very poor defensive coordinators and head coaches can have meaningful impacts on their teams’ defensive performances. A team’s defensive performance is shown to improve with increased defensive coordinator tenure. Similarly, defensive

This article examines customer discrimination considering a unique data set from the most popular sports industry in India, that is, cricket. Relying on Playing XI vote in the Indian Premier League, we analyze whether supporters have different personal preferences toward players based on their location of origin and religion. In contrast to the often-heated rhetoric surrounding discrimination and previous

While one might expect athletes to be strongly averse to extending their career too long when there is a chance of losing everything due to a concussion or a catastrophic injury, experimental subjects consistently played longer than the optimal amount for risk-neutral decisions. A commitment to the length of play in advance, as in the case of long-term contracts, led to a greater chance of staying

We examine whether the moment just before the half-time break is a particularly good time to score a goal. Using detailed data from the top five European football leagues between the 2013-2014 and 2017-2018 seasons, we exploit the quasi-random occurrence of goals scored just before and just after the half-time break. In the former situation, the game is exogenously interrupted by a break immediately

In 2005, Major League Baseball (MLB) introduced a new policy regarding the use of performance-enhancing drugs (PEDs) wherein the league would not only suspend but also publicly name any player who tested positive for banned PEDs. Using the estimated television audience size of MLB games from 2006 to 2012, these PED suspension announcements provide a unique natural experiment to test how consumers react

Using a stochastic production function approach and a dynamic panel data estimator, this study creates estimates of time-varying efficiency in the production of generated revenues for NCAA Division I football bowl subdivision athletic programs. These efficiency estimates are then compared to the use of allocated revenues—fees from students and direct payments from the university budget—by college athletic

In European club football, decision makers often rely on recent match outcomes when evaluating team performance, even though short-term results are heavily influenced by randomness. This can lead to systematic misjudgments. In this article, we propose a complementary approach for performance evaluation. We build upon the concept of expected goals based on quantified scoring chances and develop a chart

This case study investigates how various sporting and cultural events impact economic activity at a single full-service restaurant in center-city Charlotte, NC. We find no evidence of significant changes in daily revenue, customers served, and revenue per customer on the day before, day of, and day after many of the events. The exceptions are National Football League (NFL) home games, swimming events

There is wide evidence for gender differences in competitive behavior and performance under pressure from experimental economics and single-sex professional sports. We analyze these differences in a sport with direct gender competition. Our unique data consist of over 500,000 observations from around 11,000 German ninepin bowling games of which around 15% are from mixed-gender leagues. Men perform

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 Equity in Athletics Disclosure Act (EADA) database and the USA Today NCAA athletics department finance database are two of the most commonly used databases for scholars, policy makers, and other constituents interested in studying the economics of college athletics. Many in the higher education community, however, question the validity of these databases. This study used Benford’s Law of First

This article analyzes fighter marginal products (MP) and marginal revenue products (MRP) for the largest component of Ultimate Fighting Championship (UFC) revenues: content. Most bouts are fought in the presence of fixed content revenues, and most fighters go their entire careers without supplying labor services for variable revenue pay-per-view (PPV) main cards. After demonstrating that winning does

We analyze the impact of doping regulations on the doping decisions of athletes in a Tullock contest. We show that stricter anti-doping regulations may increase the profits of doped athletes, which makes doping more sustainable in the long run. Under certain conditions, a naturally more able athlete may receive a lower payoff than his naturally less able competitor, reversing the natural payoff order

This article explores Russian TV viewership for football games at seven international football tournaments from 2006 to 2018. The research goal is 2-fold. First, we identify the determinants of Russian viewership for football mega-events. We focus on patriotism effects, and we check for any hosting impact of the 2018 FIFA World Cup in Russia. Second, we analyze how these determinants differ in explaining

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

Similar to the National Basketball Association and the National Hockey League, the reverse-order nature of the Australian Football League (AFL) national player draft has often times been speculated to induce tanking. However, a prior study found that there is no evidence of tanking within the AFL. This study tests this assumption under four periods, namely, pre-2006, 2006-2011, 2012-2014, and post-2014

Standard labor market theory says that workers are paid their marginal revenue product (MRP). However, firm revenue is sometimes independent of the productivity of individual workers. This often occurs in professional sports, as the bulk of a team’s revenue comes from league-wide TV contracts negotiated years in advance. This is also true for head coaches at “Group of Five” schools, which form the

Toward the end of the 1990s and into the 2000s, Major League Baseball teams moved away from fixed ticket prices, to first setting prices according to expected game demand, and subsequently to dynamically changing prices in response to demand. Teams have also collaborated with secondary ticket marketplaces to sponsor resale. By exploiting a team panel covering seasons 1999-2017, we use fixed effect