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A Business Analysis of Asian Baseball Leagues

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  • Hayley Jang
  • Young Hoon Lee

Abstract

This study reviews previous research on sports economics and applied descriptive analyses to derive policy recommendations for the Korean Baseball Organization and the Nippon Professional Baseball. We discuss various aspects of the contemporary baseball business, and compare them with the American Major League Baseball (MLB). One distinctive characteristic common to both Asian leagues is the governance structure, where member teams are owned by major conglomerates. We explore this characteristic to assess the business objectives of the Korean Baseball Organization and the Nippon Professional Baseball, and find that their sources of competitive balance differ from those in MLB. Our conclusion suggests that their business objective should begin to move slowly toward one similar to that of MLB, and safeguards should be implemented to maintain a reasonable competitive balance. We also conclude that sports diplomacy and the creation of international competition are important because international competition and the success of national teams are critical for fan demand.

Suggested Citation

  • Hayley Jang & Young Hoon Lee, 2016. "A Business Analysis of Asian Baseball Leagues," Asian Economic Policy Review, Japan Center for Economic Research, vol. 11(1), pages 95-112, January.
    • Handle: RePEc:bla:asiapr:v:11:y:2016:i:1:p:95-112
    DOI: 10.1111/aepr.12121
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    References listed on IDEAS

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    1. Eiji Yamamura, 2011. "Game Information, Local Heroes, and Their Effect on Attendance: The Case of the Japanese Baseball League," Journal of Sports Economics, , vol. 12(1), pages 20-35, February.
    2. Young Hoon Lee, 2006. "The Decline of Attendance in the Korean Professional Baseball League," Journal of Sports Economics, , vol. 7(2), pages 187-200, May.
    3. La Croix, Sumner J & Kawaura, Akihiko, 1999. "Rule Changes and Competitive Balance in Japanese Professional Baseball," Economic Inquiry, Western Economic Association International, vol. 37(2), pages 353-368, April.
    4. Young Hoon Lee & Rodney Fort, 2005. "Structural Change in MLB Competitive Balance: The Depression, Team Location, and Integration," Economic Inquiry, Western Economic Association International, vol. 43(1), pages 158-169, January.
    5. Young H. Lee & Trenton G. Smith, 2008. "Why Are Americans Addicted To Baseball? An Empirical Analysis Of Fandom In Korea And The United States," Contemporary Economic Policy, Western Economic Association International, vol. 26(1), pages 32-48, January.
    6. Helmut M. Dietl & Martin Grossmann & Markus Lang, 2011. "Competitive Balance and Revenue Sharing in Sports Leagues With Utility-Maximizing Teams," Journal of Sports Economics, , vol. 12(3), pages 284-308, June.
    7. Craig A. Depken II, 2001. "Fan Loyalty in Professional Sports," Journal of Sports Economics, , vol. 2(3), pages 275-284, August.
    8. Rodney Fort, 2015. "Managerial Objectives: A Retrospective on Utility Maximization in Pro Team Sports," Scottish Journal of Political Economy, Scottish Economic Society, vol. 62(1), pages 75-89, February.
    9. Craig A. Depken II, 2000. "Fan Loyalty and Stadium Funding in Professional Baseball," Journal of Sports Economics, , vol. 1(2), pages 124-138, May.
    10. Chun-Da Chen & Chih-Chun Chen, 2012. "Assessing the Effects of Sports Marketing on Stock Returns," Journal of Sports Economics, , vol. 13(2), pages 169-197, April.
    11. Rodney Fort & James Quirk, 1995. "Cross-subsidization, Incentives, and Outcomes in Professional Team Sports Leagues," Journal of Economic Literature, American Economic Association, vol. 33(3), pages 1265-1299, September.
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    Cited by:

    1. Young Hoon Lee & Yongdai Kim & Sara Kim, 2019. "A Bias-Corrected Estimator of Competitive Balance in Sports Leagues," Journal of Sports Economics, , vol. 20(4), pages 479-508, May.
    2. Yan Feng & Jinbao Wang & Yeujun Yoon, 2020. "Online Webcast Demand vs. Offline Spectating Channel Demand (Stadium and TV) in the Professional Sports League," Sustainability, MDPI, vol. 12(23), pages 1-18, November.
    3. Sang Hun Sung & Doo-Seung Hong & Soo Young Sul, 2020. "How We Can Enhance Spectator Attendance for the Sustainable Development of Sport in the Era of Uncertainty: A Re-Examination of Competitive Balance," Sustainability, MDPI, vol. 12(17), pages 1-15, August.
    4. Takanobu Nakajima, 2016. "Comment on “A Business Analysis of Asian Baseball Leagues”," Asian Economic Policy Review, Japan Center for Economic Research, vol. 11(1), pages 113-114, January.
    5. Renata V. Klafke & Paulo M. Gomes & Demétrio Mendonça Junior & Simone R. Didonet & Ana M. Toaldo, 2021. "Engagement in social networks: a multi-method study in non-profits organizations," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 18(2), pages 295-315, June.
    6. Eiji Yamamura, 2016. "Comment on “A Business Analysis of Asian Baseball Leagues”," Asian Economic Policy Review, Japan Center for Economic Research, vol. 11(1), pages 115-116, January.

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