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Article
Publication date: 9 May 2016

Timothy D. DeSchriver, Daniel A. Rascher and Stephen L. Shapiro

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…

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Abstract

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 success of the Seattle Sounders in drawing about twice as many fans as the next highest drawing franchise, yet playing in an American football stadium.

Research limitations/implications

While many of the standard factors such as the presence of holidays and novelty players, competition from other professional teams, and day of week, competition from other professional teams; team quality failed to show significance. Expansion teams drew better than incumbent teams and the impact from soccer-specific stadia is weak given the success of the Seattle franchise (and possibly negative when excluding Seattle). Censoring of the dependent variable had a discernible impact on many of the attendance factors.

Practical implications

These findings may be useful to managers of MLS and their teams along with other professional teams and/or leagues that are investigating the use of either team expansion or the construction of new facilities to increase spectator attendance.

Originality/value

This is the first study to investigate the relationship between expansion and new stadium construction in MLS over multiple years. The results indicate that MLS’s decision to use team expansion and the construction of soccer-specific stadiums has been beneficial with respect to spectator attendance.

Details

Sport, Business and Management: An International Journal, vol. 6 no. 2
Type: Research Article
ISSN: 2042-678X

Keywords

Article
Publication date: 8 May 2017

Nicholas Watanabe and Brian Soebbing

The purpose of this paper is to examine the impact of team performance, price dispersion – having multiple ticket prices for a single event, and market characteristics on fan…

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Abstract

Purpose

The purpose of this paper is to examine the impact of team performance, price dispersion – having multiple ticket prices for a single event, and market characteristics on fan attendance. By considering the context of the Chinese Super League (CSL), this study considers multiple strategies for enhancing the demand for sport in relation to factors on- and off-the-field of play.

Design/methodology/approach

This study uses economic demand theory to examine consumer interest in sporting events in relation to pricing. Through employing econometric modeling, regression analysis is used to estimate results from match-level data encompassing multiple seasons.

Findings

The findings estimated from the linear regressions indicate that using multi-tiered pricing for sporting events does not significantly enhance demand in this context. Furthermore, it is found that consumers are responsive to matches against rival teams and strong opponents.

Research limitations/implications

The results run counter to prior literature on price dispersion, indicating that attendance demand may not always be influenced by the number of price points.

Practical implications

The findings help to develop an understanding of how team performance and pricing are important parts of meeting organizational goals in sport. From this, strategies can be formed to help stakeholders and managers in improving organizational performance.

Originality/value

This research is one of the first to consider the CSL, where both single and multiple price points exist for sporting events. Thus, it helps to build both theoretical and empirical knowledge in regards to the importance of pricing systems.

Details

Sport, Business and Management: An International Journal, vol. 7 no. 2
Type: Research Article
ISSN: 2042-678X

Keywords

Article
Publication date: 6 July 2020

Robert Sroka

This article intends to shine a light on venue-related tax increment financing (TIF) through the first comprehensive inventory of its use at the major league level.

Abstract

Purpose

This article intends to shine a light on venue-related tax increment financing (TIF) through the first comprehensive inventory of its use at the major league level.

Design/methodology/approach

For each 2018 venue in the five North American major leagues, data was collected on TIF contributions to direct venue capital costs as well as to projects using TIF to enable real estate development ancillary to a venue. Neighborhoods surrounding a venue were also assessed for the presence of a TIF district. With both the direct and ancillary elements, data was collected from government, industry, academic, mapping and media sources. A review of this data set and findings are followed by a discussion of implications and directions for future work.

Findings

Over one-third of the TIF eligible permanent stadiums and arenas studied in the five major leagues have a direct or strong TIF connection. Direct TIF contributions to sports venues, as well as TIF use intended to generate real estate development around these venues, are most frequent and financially significant in arenas and soccer-specific stadiums. Additionally, arena and stadium projects using TIF often accompany ancillary real estate development.

Originality/value

A primary purpose of this article is to provide a previously missing general reference resource to governments and citizens of jurisdictions considering facility TIF use on the scope, nature, extent and identity of TIF projects related to major league sports venues. More generally, the inventory and assessment of TIF use in professional sports venues offered by this article sets the stage for future research on associative relationships between TIF contributions and facility finance outcomes as well as the normative value of venue-related TIF.

Details

Sport, Business and Management: An International Journal, vol. 10 no. 4
Type: Research Article
ISSN: 2042-678X

Keywords

Case study
Publication date: 7 June 2021

Muralee Das and Susan Myrden

Resource-based view (RBV) theory (Barney, 1991; Barney and Mackey, 2016; Nagano, 2020) states that a firm’s tangible and intangible resources can represent a sustainable…

Abstract

Theoretical basis

Resource-based view (RBV) theory (Barney, 1991; Barney and Mackey, 2016; Nagano, 2020) states that a firm’s tangible and intangible resources can represent a sustainable competitive advantage (SCA), a long-term competitive advantage that is extremely difficult to duplicate by another firm, when it meets four criteria (i.e. not imitable, are rare, valuable and not substitutable). In the context of this case, we believe there are three sources of SCA to be discussed using RBV – the major league soccer (MLS) team player roster, the use of artificial intelligence (AI) technologies to exploit this roster and the league’s single-entity structure: • MLS players: it has been widely acknowledged that a firm’s human resource talent, which includes professional soccer players (Omondi-Ochieng, 2019), can be a source of SCA. For example, from an RBV perspective, a player on the Los Angeles Galaxy roster: > cannot play for any other team in any other league at the same time (not imitable and are rare), > would already be a competitive player, as he is acquired to play in the highest professional league in the country (valuable) and > it would be almost impossible to find a clone player matching his exact talent characteristic (not substitutable) anywhere else. Of course, the roster mix of players must be managed by a capable coach who is able to exploit these resources and win championships (Szymanski et al., 2019). Therefore, it is the strategic human resource or talent management strategies of the professional soccer team roster that will enable a team to have the potential for an SCA (Maqueira et al., 2019). • Technology: technology can also be considered a source of SCA. However, this has been a source of contention. The argument is that technology is accessible to any firm that can afford to purchase it. Logically, any MLS team (or for that matter any professional soccer team) can acquire or build an AI system. For many observers, the only obvious constraint is financial resources. As we discuss in other parts of the case study, there is a fan-based assumption that what transpired in major league baseball (MLB) may repeat in the MLS. The movie Moneyball promoted the use of sabermetrics in baseball when making talent selection (as opposed to relying exclusively on scouts), which has now evolved into the norm of using technology-centered sports analytics across all MLB teams. In short, where is the advantage when every team uses technology for talent management? However, if that is the case, why are the MLB teams continuing to use AI and now the National Basketball Association (NBA), National Football League (NFL) and National Hockey League are following suit? We believe RBV theorists have already provided early insights: > “the exploitation of physical technology in a firm often involves the use of socially complex firm resources. Several firms may all possess the same physical technology, but only one of these firms may possess the social relations, cultural traditions, etc., to fully exploit this technology to implementing strategies…. and obtain a sustained competitive advantage from exploiting their physical technology more completely than other firms” (Barney, 1991, p. 110). • MLS League Single-Entity Structure: In contrast to other professional soccer leagues, the MLS has one distinct in-built edge – its ownership structure as a single entity, that is as one legal organization. All of the MLS teams are owned by the MLS, but with franchise operators. The centralization of operations provides the MLS with formidable economies of scale such as when investing in AI technologies for teams. Additionally, this ownership structure accords it leverage in negotiations for its inputs such as for player contracts. The MLS is the single employer of all its players, fully paying all salaries except those of the three marquees “designated players.” Collectively, this edge offers the MLS unparalleled fluidity and speed as a league when implementing changes, securing stakeholder buy-ins and adjusting for tailwinds. The “socially complex firm resources” is the unique talent composition of the professional soccer team and most critically its single entity structure. While every team can theoretically purchase an AI technology talent management system, its application entails use across 30 teams with a very different, complex and unique set of player talents. The MLS single-entity structure though is the resource that supplies the stability required for this human-machine (technology) symbioses to be fully accepted by stakeholders such as players and implemented with precision and speed across the entire league. So, there exists the potential for each MLS team (and the MLS as a league) to acquire SCA even when using “generic” AI technology, as long as other complex firm factors come into play.

Research methodology

This case relied on information that was widely reported within media, press interviews by MLS officials, announcements by various organizations, journal articles and publicly available information on MLS. All of the names and positions, in this case, are actual persons.

Case overview/synopsis

MLS started as a story of dreaming large and of quixotic adventure. Back in 1990, the founders of the MLS “sold” the league in exchange for the biggest prize in world soccer – the rights to host the 1994 Fédération Internationale de Football Association World Cup before they even wrote up the business plan. Today, the MLS is the highest-level professional men’s soccer league competition in the USA. That is a major achievement in just over 25-years, as the US hosts a large professional sports market. However, MLS has been unable to attract higher broadcasting value for its matches and break into the highest tier of international professional soccer. The key reason is that MLS matches are not deemed high quality content by broadcasters. To achieve higher quality matches requires many inputs such as soccer specific stadiums, growing the fan base, attracting key investors, league integrity and strong governance, all of which MLS has successfully achieved since its inception. However, attracting high quality playing talent is a critical input the MLS does not have because the league has repeatedly cautioned that it cannot afford them yet to ensure long-term financial sustainability. In fact, to guarantee this trade-off, the MLS is one of the only professional soccer leagues with an annual salary cap. So, the question is: how does MLS increase the quality of its matches (content) using relatively low cost (low quality) talent and still be able to demand higher broadcast revenues? One strategy is for the MLS to use AI playing technology to extract higher quality playing performance from its existing talent like other sports leagues have demonstrated, such as the NFL and NBA. To implement such a radical technology-centric strategy with its players requires the MLS to navigate associated issues such as human-machine symbioses, risking fan acceptance and even altering brand valuation.

Complexity academic level

The case is written and designed for a graduate-level (MBA) class or an upper-level undergraduate class in areas such as contemporary issues in management, human resource management, talent management, strategic management, sports management and sports marketing. The case is suitable for courses that discuss strategy, talent management, human resource management and brand strategy.

Details

The CASE Journal, vol. 17 no. 2
Type: Case Study
ISSN: 1544-9106

Keywords

Article
Publication date: 19 July 2022

Diego Gutierrez, James J. Zboja, Kristie Briggs and Kathleen M. Sheehan

The primary purpose of this study is to examine how fan attendance at team special events and player appearances impact fan consumption (as measured by merchandise sales)…

Abstract

Purpose

The primary purpose of this study is to examine how fan attendance at team special events and player appearances impact fan consumption (as measured by merchandise sales). Insights obtained could shed light on opportunities for professional soccer teams to expand revenues through enhanced fan consumption of goods and services.

Design/methodology/approach

A sample of 499 season ticket holders were used to assess fan consumption by measuring merchandise sales. Ordinary least squares (OLS) regressions were run for merchandise sales as the dependent variable of fan consumption. The control variables were age, gender (male = 1, 0 otherwise), and whether an individual has children.

Findings

The key independent variables of attending special events and fan–player bonding were both found to have a statistically significant impact on merchandise sales. Results show that each additional special event attended generates up to $33.71 in merchandise sales for the club. Similarly, each fan–player bonding experience attended also has a direct impact, increasing merchandise consumption by $23.00.

Social implications

The results of this study provide insights that can help fan consumption grow within the professional United States soccer industry and better allow team managers to make decisions about the possible benefits of holding more special events and fan–player bonding experiences. The findings also confirm the impact personal relationships with fans can have on the bottom line of sport franchises.

Originality/value

Though this study adds to the body of literature by expanding previous work on fan consumption, there are limited studies on the social aspects of consumption which are examined and analyzed within this study, particularly of note is the study of merchandise sales as proxy for fan consumption.

Details

Sport, Business and Management: An International Journal, vol. 13 no. 2
Type: Research Article
ISSN: 2042-678X

Keywords

Article
Publication date: 5 October 2012

James Santomier and John Gerlach

The purpose of this article is to examine selected public policy and funding issues of six New York Metropolitan Area sport venues and to discuss their implications for the future…

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Abstract

Purpose

The purpose of this article is to examine selected public policy and funding issues of six New York Metropolitan Area sport venues and to discuss their implications for the future of sport venue construction.

Design/methodology/approach

The design of this paper is a descriptive case study, which is appropriate when the question to be answered is how or why, when there is no necessary control of behavioral events, and when the study is focused on contemporary events. A systematic review of public documents and available research related to the recent development and funding of selected sport venues was conducted. In addition, a critical appraisal and financial analysis was performed on selected data collected from a variety of proprietary facility reports and public documents.

Findings

Based on a systematic examination of public documents and available research it was determined that a complex mix of local, regional, and state politics has impacted significantly the dynamics of professional sport venue development in the New York Metropolitan Area. It is also apparent that there has been a significant lack of transparency with respect to public policy. In addition, it appears that sport venue development in the entire US will experience a trend toward integration with retail, commercial, and residential real estate development that appears to be a result of political pressure and the need to rapidly recoup investment costs associated with sport venue construction.

Research limitations/implications

Because this is a descriptive case study, the findings, etc., are limited to those specific venues and public policy issues that were selected for examination.

Practical implications

This case study should provide educators and practitioners with insight into the complexity of mission critical decisions that are involved in the development and funding of sport venues. It also should provide insight into the political process related to sport venue construction and the importance of transparency in communicating with the public.

Social implications

This case study may provide educators and practitioners with insight into the relationship among public policy, venue financing, and selected social issues.

Originality/value

This case study provides original insight into the key elements of funding sport venues in the New York Metropolitan Area. It will provide educators and practitioners with a frame of reference for further examination of the development of sport venues worldwide.

Details

Sport, Business and Management: An International Journal, vol. 2 no. 3
Type: Research Article
ISSN: 2042-678X

Keywords

Open Access
Article
Publication date: 27 June 2022

Timothy Kellison and Beth A. Cianfrone

In this study, the authors examine consumer attitudes toward a professional soccer club’s proenvironmental initiatives and evaluate whether key themes are consistent with those…

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Abstract

Purpose

In this study, the authors examine consumer attitudes toward a professional soccer club’s proenvironmental initiatives and evaluate whether key themes are consistent with those found in previous research of fans in different sporting contexts.

Design/methodology/approach

The authors analyzed empirical material provided by 147 highly identified supporters of a Major League Soccer team. Using template analysis, the authors compared codes, categories and themes with those previously identified in a reference group of National Football League (NFL) fans.

Findings

Twenty-three preliminary codes, nine categories and four themes were established by the researchers. Three themes – Considering Environmental Action, Business Insights and Impacting the Fan Experience – were all consistent with the NFL reference group. A fourth theme, Public Visibility, focused on the possibility that the club’s proenvironmental initiatives could provide a competitive advantage over rival cities and positively influence local programming and behaviors.

Originality/value

The results of this study support the notion that fan characteristics may differ across various demographic and structural contexts and fans’ recognition that a club could leverage its community standing to promote proenvironmental action.

Details

International Journal of Sports Marketing and Sponsorship, vol. 24 no. 1
Type: Research Article
ISSN: 1464-6668

Keywords

Article
Publication date: 12 April 2019

Becca Leopkey and Dana Ellis

The purpose of this paper is to explore how a legacy of event hosting competencies from one event can contribute to advancing the overall hosting capacity of a nation for future…

Abstract

Purpose

The purpose of this paper is to explore how a legacy of event hosting competencies from one event can contribute to advancing the overall hosting capacity of a nation for future events. More specifically, the project focuses on determining the event hosting capacity legacies from the Men’s Under-20 2007 Fédération Internationale de Football Association (FIFA) event in Canada and how they contributed toward winning the rights for the Women’s FIFA World Cup 2015 event.

Design/methodology/approach

A qualitative case study design focusing on FIFA events held in Canada in 2007 and 2015 was used.

Findings

Four broad event hosting capacity legacies from the U-20 2007 event that potentially impacted Canada’s ability to secure the WWC 2015 were identified. These legacies included: exemplifying success, advancement of hosting concepts, staff and leadership experience and development and enhancement of sporting infrastructure.

Research limitations/implications

The findings formed the basis of a discussion on the increasing formalization of event organizing committees, the need to consider collective (i.e. multiple events) legacies in the development of hosting strategies as well as the importance of developing the trust of the local community to support future sport event bids and hosting.

Originality/value

The originality and value of this research paper lies in its use of empirical case study findings to illustrate the potential for hosting capacity legacies of sporting events as well as the level and type of event under investigation (i.e. large-scale, football/soccer).

Details

Sport, Business and Management: An International Journal, vol. 9 no. 1
Type: Research Article
ISSN: 2042-678X

Keywords

Abstract

Details

Construction Industry Advance and Change: Progress in Eight Asian Economies Since 1995
Type: Book
ISBN: 978-1-80043-504-9

Article
Publication date: 17 January 2023

Bruno Melo Moura, André Luiz Maranhão de Souza-Leão, Ewerton Pacheco da Silva and Guilherme Monteiro Alves dos Santos

Sports leagues, such as Major League Soccer (MLS), aim at expanding their audience at global level through alternative media other than television (TV). Brazil stands out among…

Abstract

Purpose

Sports leagues, such as Major League Soccer (MLS), aim at expanding their audience at global level through alternative media other than television (TV). Brazil stands out among football media consumer audiences as one of the main markets worldwide. Brazilian MLS consumers play the role of fans to converge between TV media and digital platforms, in a phenomenon that has been called Social TV.

Design/methodology/approach

The aim of the current research is to investigate how Brazilian MLS fans' consumption process is established through Social TV; it was done based on netnography performed between 2018 and 2020.

Findings

Results have indicated that Social TV is a catalyst of practices associated with fan culture: cultural convergence, technologies appropriations, poaching experiences and production of a collective intelligence.

Research limitations/implications

Current research reinforces how ethnography methodology has been gaining room as likely consumer market research, working as alternative method based on the prevalence of focus group and survey techniques.

Practical implications

Social TV phenomenon presents itself as a possibility to expand and direct marketing strategies focused on sports management, just as the media often consumed by fans.

Originality/value

From the results, it is possible assuming that connections between fans are punctually guided by their relationship with the cultural object consumed by them in a network relationship whose actors deindividualize sociocultural practices such as consumption. Thus, the main contribution of the study lies on identifying how fan culture can be autonomously established in the market arena in comparison to other cultures.

Details

Sport, Business and Management: An International Journal, vol. 13 no. 3
Type: Research Article
ISSN: 2042-678X

Keywords

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