Stephen L. Shapiro

The Effects of Roster Turnover on Demand in the National Basketball Association

The purpose of this study was to examine the effects of roster turnover on demand in the National Basketball Association (NBA) over a five-year period (2000-2005) and compare these results to previous research on turnover in Major League Baseball (MLB). A censored regression equation was developed to examine the relationship between roster turnover and season attendance, while controlling for other potentially confounding variables in the model. The censored regression model was used to account for the capacity constraints by forecasting the level of demand beyond capacity using information from the uncensored observations. The regression model was found to be significant with a log-likelihood statistic of 110.446. Previous attendance, current winning percentage, previous winning percentage, number of all-star players, and team history were found to be significant predictors of attendance. However, the variables measuring the effects of roster turnover were not found to be significant. There were substantial differences in the effect of roster turnover on attendance in the NBA compared with MLB. In addition, these findings provide evidence for using censored regression when dealing with constrained variables. Sellouts in the NBA appear to have an effect on all of the variables in the demand model. Future research will need to be conducted to help sport managers understand the role of roster turnover in specific professional leagues and to better understand the importance of using a censored regression model.

Examining the impact of league entry fees on online fantasy sport participation and league consumption

Abstract After American legislators explicitly exempted fantasy sports from online gambling laws, legal theorists have debated whether or not playing fantasy sports for money warranted such an exemption. However, there is currently no survey-based research which has examined the relationship between gambling and the attitudes and behaviours of fantasy players. The current study surveyed 253 fantasy participants and separated respondents into groups based on whether or not they play fantasy baseball for money. Results indicate that those who play for money are increasingly motivated by the social benefits associated with participation and are not motivated by the opportunity to win money. This finding runs counter to research on traditional forms of gambling, which often reports strong anti-social tendencies associated with increased gambling along with a strong motivation for financial gain. Further, from the league and team perspective, those who play fantasy baseball for money actually exhibited higher levels of team-related consumption.

If we build it, will they come? Examining the effect of expansion teams and soccer-specific stadiums on Major League Soccer attendance.

Purpose – Two of the primary growth strategies for Major League Soccer (MLS) have been team expansion and the construction of soccer-specific stadiums. Therefore, the purpose of this paper is to determine the relationship between these factors and game-specific MLS spectator attendance. Design/methodology/approach – Two multiple regression models, one using multi-level mixed effects linear regression and another using interval regression, were developed to explain the variation in attendance utilizing the two factors of interest along with other control factors that have been identified as attendance determinants in previous literature. Game-specific data were collected for five MLS seasons, 2007-2011. Findings – The two regression models explained approximately 40 percent of the variation in spectator attendance and the results showed that expansion teams and soccer-specific stadiums were significantly related to attendance. However, the effect of soccer-specific stadiums was minimized due to the extreme...

The displaced fan: the importance of new media and community identification for maintaining team identity with your hometown team

ABSTRACT Research question: Individuals who move away from their hometowns often remain fans of their hometown teams. In this study, we examine the impact of new media, differences between hometown and current community identification, and the impact of proximity to a National Football League (NFL) market on the team identification of displaced fans. Research methods: To study these questions, an online survey was conducted. The sample included adult Americans (n = 347) who identify as fans of their hometown NFL teams and currently live more than 100 miles away from their hometowns. Structural equation modeling, analysis of variance, and analysis of covariance were used to examine the data. Results/findings: Through use of a structural model, we demonstrated that social media, Internet streaming, and hometown identification affected hometown team identification. In addition, mean comparisons demonstrated that fans with higher levels of identification with their hometown communities than their current residences also displayed higher levels of hometown team identification than fans more highly identified with their current residences. Whether an individual moves to another primary NFL market after leaving the hometown was not found to have a statistically significant impact on identification with the hometown team. Implications: Engagement is critical to continued identification amongst sport fans. In this paper, we offer justification for both reaching out to non-local fans and keeping them engaged, and insight into possible avenues for fostering engagement. This may partially explain why professional teams in areas with rapid influxes of residents from other cities struggle to build a highly identified fan base.

The Beckham effect: examining the longitudinal impact of a star performer on league marketing, novelty, and scarcity

ABSTRACT Research question: The purpose of this study was to examine the impact of Major League Soccer’s (MLS) league marketing strategy to make a significant investment in an international star athlete. Soccer star David Beckham’s impact was examined longitudinally to assess changes in consumer preference over time. Novelty seeking behavior and scarcity were two theories used to hypothesize consumer preference during Beckman’s tenure in MLS, and to understand the potential return on this substantial league investment. Research methods: The sampling frame for this study was all MLS games that occurred during David Beckham’s tenure, from 2007 to 2012. A total of 1473 game observations were examined in this investigation. A censored panel regression was estimated using both random and fixed effects models. A total of 25 determinants of attendance were examined, including Beckham’s overall impact, home and road impact, and year-by-year impact. Results and findings: Findings showed David Beckham’s presence had a significant impact on MLS attendance. Specifically the biggest impact was seen in attendance at road games, providing evidence of a return on the marketing investment made by the league. Additionally, when examining the year-by-year impact of Beckham, both a novelty and scarcity effect were present. Implications: These findings contribute to the marketing literature on the impact of star performers in the sport and entertainment industry. The current investigation extends the knowledge on strategic marketing at the league level, particularly for a single-entity ownership model. Additionally, this examination highlights the factors that help to explain consumer preference changes over a prolonged period, such as novelty and scarcity.

Factors Impacting Ticket Price Paid by Consumers on the Secondary Market for a Major Sporting Event

In an era of dynamically priced tickets, sport marketers benefit from a greater understanding of factors impacting the price consumers are willing to pay. Past research has investigated external factors affecting ticket price on the secondary market, but little work has investigated internal factors and no prior research has utilized actual price paid as a dependent variable. The current study found age, income, prior attendance, timing of purchase, and seat location influenced secondary ticket price paid, explaining 44.9% of the variance, while fan identification and alumni status did not impact the amount patrons paid for tickets to a major college men’s basketball tournament. Subscribe to JASM

Hashmoney: exploring Twitter hashtag use as a secondary ticket market price determinant

The growth and prevalence of sport event ticket transactions on secondary ticket market platforms such as StubHub has led to the creation of a body of academic research studying this new phenomenon. Factors such as team performance and perceptions of fairness have been explored for their relationship with the price of secondary market tickets. This exploratory study introduces a new potential price determinant – social media activity – itself a popular online phenomenon that has inspired considerable academic research. This exploratory study of prices for eight National Football League games adds use of official team hashtags on Twitter to a multiple regression model, controlling for other price determinants established in previous research two models, one to predict prices for tickets sold on StubHub, the second to predict prices for tickets available on StubHub, demonstrate that increased Twitter hashtag use is a significant positive predictor of ticket prices on the secondary market.

Examining the relationship between legitimacy-building strategies and firm revenues

Research question: The secondary ticket market has traditionally lacked the perception that it was a safe and legitimate place to acquire tickets. The current study examined the relationship between legitimacy-building strategies, such as lobbying for the deregulation of anti-ticket-scalping laws and engaging in partnerships with established sport organizations, and the revenues generated by the largest secondary market firm, StubHub. This study was conducted within the context of National Football League (NFL) ticket resale. Research methods: StubHub provided ticket resale figures for all 256 regular season games which took place during the 2007 NFL season. Hierarchical regression was utilized in order to examine the relationships between both price restrictions and secondary market partnerships, and ticket resale price and ticket resale volume. Results and findings: Results indicate secondary market partnerships have a significant influence on firm revenues, increasing the number of transactions while accounting for only slight decreases in price. Anti-scalping laws have a less pronounced association with resale volume and price. Implications: This research extends academic literature on secondary market operations and provides practical implications as primary and secondary market firms as well as state and local legislatures may use the findings to inform their decision-making.