Nola Agha

The Economic Impact of Stadiums and Teams: The Case of Minor League Baseball

This article uses an extensive unique data set to investigate the efficiency of government subsides for minor league baseball teams and stadiums by measuring pecuniary gains in a local economy. Specifically, a dynamic panel data model incorporating 238 Metropolitan Statistical Areas (MSAs) that hosted affiliated or independent minor league teams between 1985 and 2006 shows that AAA teams, A+ teams, AA stadiums, and rookie stadiums are all associated with significant positive effects on the change in local per capita income. The presence of positive effects is strikingly different from decades of nonpositive results at the major league level.

An explanation of economic impact: why positive impacts can exist for smaller sports

Purpose – The purpose of this paper is to understand why some sports show a positive economic impact and other sports do not, and to identify a common set of explanatory factors explaining the differences. Design/methodology/approach – This explanatory research reviews the economic impact literature to identify the underlying conditions that would theoretically allow any sport, large or small, to generate positive economic effects. Findings – Nine conditions are identified that, when present, could allow a community to experience a positive economic impact from a team or stadium. These are then used to explain the discrepancy in known empirical outcomes in major and minor league baseball (MiLB). It appears as if major league teams are more likely to violate the conditions than minor league teams. This research finds theoretical support for previous suggestions that smaller teams and events may be beneficial to local economies. In doing so, it also explains previous empirical results that found some MiLB c...

Rebranding: the effect of team name changes on club revenue

ABSTRACT Research question: The purpose of this study is to explore the financial effect of four types of team name changes, three of which have not been previously studied. We do so in the context of development leagues where rebranding occurs with considerable frequency, thus affecting a great number of sport managers. Research methods: The effect of rebranding on club revenue was derived by combining the results of two analyses. The first used an economic demand equation to examine the attendance variations of 475 Minor League Baseball teams in 244 cities in the United States and Canada between 1980 and 2011 that engaged in one (or more) of four different types of name changes. The second examined changes in merchandise sales after a rebranding effort. Results and Findings: The results indicate that development teams fail to derive financial gains from adopting the names of their major league parent clubs. Instead, teams that abandon unique local names see large attendance decreases suggesting that local names generate greater brand awareness and brand image than their major league counterparts. The largest merchandise gains are generated by teams that adopt new, local names. Implications: These findings further our understanding of the outcomes of brand management and rebranding efforts by acknowledging that former and future names have varying levels of brand equity that have real effects on consumer purchasing behaviors and subsequent financial gains and losses.

Reputation and the league standing effect: the case of a split season in minor league baseball

ABSTRACT Split season league design resets standings at the midpoint of the season, thus allowing for two periods in which a team can potentially achieve success in a single season. This context allows us to test both the reputation of the first half winner and the league standing effect on demand. Examination of game-level data from the 2010 Southern League reveals fans are unaffected by measures of both team quality and league standing in the second half of the season. On the other hand, the first half winners saw an 11% increase in attendance as a percent of stadium capacity, suggesting that in the second half of the season winners matter more than winning.

Annual Attendance Demand in Minor League Baseball: A Review and Critique

Considerable time has been spent on identifying the demand determinants in major league sports. Much less attention has focused on minor league baseball despite its unique business structure: with free inputs provided by strategic alliance partners, minor league teams rely more heavily on their home stadiums, promotions, local brand, and partnerships with Major League clubs to generate demand. This conceptual research first defines the characteristics of minor league baseball that make it unique from demand in Major League Baseball. Next, it discusses theoretical demand determinants and provides a review of empirical results. It concludes by identifying the problems in current MiLB demand modelling and offers suggestions for improvements and future research.