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Location and Survival in the National Hockey League

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  • Jones, J C H
  • Ferguson, D G

Abstract

A model of professional sport franchises is introduced and used to explore the locational and other determi nants of profitability. Particular attention is paid to the effect of location on attendance, market power, and long-run team quality. Whe n estimated using data for the National Hockey League in 1977-78, the model indicates that location has an effect on each of these and tha t their combined effect on profitability is effective in explaining p rior and subsequent decisions concerning league expansion and franchi se relocation. A number of other matters are also addressed, includin g league arguments for antitrust exemption and league policies to res trict expansion. Copyright 1988 by Blackwell Publishing Ltd.

Suggested Citation

  • Jones, J C H & Ferguson, D G, 1988. "Location and Survival in the National Hockey League," Journal of Industrial Economics, Wiley Blackwell, vol. 36(4), pages 443-457, June.
    • Handle: RePEc:bla:jindec:v:36:y:1988:i:4:p:443-57
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    Cited by:

    1. Roger G. Noll, 2013. "Endogeneity in attendance demand models," Chapters, in: Plácido Rodríguez & Stefan Késenne & Jaume García (ed.), The Econometrics of Sport, chapter 7, pages 117-134, Edward Elgar Publishing.
    2. Men-Andri Benz & Leif Brandes & Egon Franck, 2009. "Do Soccer Associations Really Spend On A Good Thing? Empirical Evidence On Heterogeneity In The Consumer Response To Match Uncertainty Of Outcome," Contemporary Economic Policy, Western Economic Association International, vol. 27(2), pages 216-235, 04.
    3. Mark Baimbridge, 1997. "Match attendance at Euro 96: was the crowd waving or drowning?," Applied Economics Letters, Taylor & Francis Journals, vol. 4(9), pages 555-558.
    4. Morten Kringstad & Tor-Eirik Olsen & Tor Georg Jakobsen & Rasmus K. Storm & Nikolaj Schelde, 2021. "Match Experience at the Danish Women’s Soccer National A-Team Matches: An Explorative Study," Sustainability, MDPI, vol. 13(5), pages 1-20, March.
    5. Kelly Goossens, 2006. "Competitive balance in european football: comparison by adapting measures: national measure of seasonal imbalance and Top 3," Rivista di Diritto ed Economia dello Sport, Centro di diritto e business dello Sport, vol. 2(2), pages 77-122, Dicembre.
    6. Yi-hsuan Chiang & Wen-jhan Jane, 2013. "The Effects of Outcome Uncertainties, Patriotism, and Asian Regionalism in the World Baseball Classic," Journal of Media Economics, Taylor & Francis Journals, vol. 26(3), pages 148-161, September.
    7. Brian M. Mills & Rodney Fort, 2018. "Team-Level Time Series Analysis in MLB, the NBA, and the NHL," Journal of Sports Economics, , vol. 19(7), pages 911-933, October.
    8. Boris Helleu & Christophe Durand, 2006. "Sport collectif et compétitions internationales entre clubs : le cas des équipes canadiennes en Amérique du Nord," Post-Print halshs-02110675, HAL.
    9. Carlos A Rabassó & Martin Briars & Fco Javier Rabassó, 2015. "Royal Family Business In Qatar And The Emirates Through Sports Club Management: "Green Washing" Or A Sustainable Model? The Cases Of Fc Barcelona And Manchester City," Post-Print hal-02478321, HAL.
    10. Julian Blackham & Bruce Chapman, 2004. "The Value Of Don Bradman: Additional Revenue In Australian Ashes Tests," Economic Papers, The Economic Society of Australia, vol. 23(4), pages 369-385, December.
    11. Dominik Schreyer & Sascha L. Schmidt & Benno Torgler, 2018. "Game Outcome Uncertainty and Television Audience Demand: New Evidence from German Football," German Economic Review, Verein für Socialpolitik, vol. 19(2), pages 140-161, May.
    12. Pelnar, Gregory, 2007. "Antitrust Analysis of Sports Leagues," MPRA Paper 5382, University Library of Munich, Germany.
    13. Dominik Schreyer & Sascha L. Schmidt & Benno Torgler, 2017. "Game Outcome Uncertainty and the Demand for International Football Games: Evidence From the German TV Market," Journal of Media Economics, Taylor & Francis Journals, vol. 30(1), pages 31-45, January.
    14. J. C. H. Jones & J. A. Schofield & D. E. A. Giles, 2000. "Our fans in the north: the demand for British Rugby League," Applied Economics, Taylor & Francis Journals, vol. 32(14), pages 1877-1887.
    15. Jeffery Borland, 2003. "Demand for Sport," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 19(4), pages 478-502, Winter.
    16. Trung Minh Dang & Ross Booth & Robert Brooks & Adi Schnytzer, 2015. "Do TV Viewers Value Uncertainty of Outcome? Evidence from the Australian Football League," The Economic Record, The Economic Society of Australia, vol. 91(295), pages 523-535, December.
    17. Dirk Semmelroth & Bernd Frick & Robert Simmons & Hojun Sung, 2022. "Where to Go Next? Examining the Effect of Franchise Expansion and Location on Game-Level Attendance in Major League Soccer," Journal of Sports Economics, , vol. 23(5), pages 524-547, June.
    18. John C. Leadley & Zenon X. Zygmont, 2006. "When Is the Honeymoon Over? National Hockey League Attendance, 1970­2003," Canadian Public Policy, University of Toronto Press, vol. 32(2), pages 213-232, June.
    19. Regina Madalozzo & Rodrigo Berber Villar, 2009. "Brazilian Football," Journal of Sports Economics, , vol. 10(6), pages 639-650, December.
    20. P. Dorian Owen & Clayton R. Weatherston, 2004. "Uncertainty of Outcome and Super 12 Rugby Union Attendance," Journal of Sports Economics, , vol. 5(4), pages 347-370, November.
    21. Wade Poplawski & Michael O’Hara, 2014. "The Feasibility of Potential NHL Markets Under the New Collective Bargaining Agreement," Journal of Sports Economics, , vol. 15(1), pages 64-77, February.
    22. Jamal Shamsie & Michael J. Mannor, 2013. "Looking Inside the Dream Team: Probing Into the Contributions of Tacit Knowledge as an Organizational Resource," Organization Science, INFORMS, vol. 24(2), pages 513-529, April.
    23. Brian M. Mills & Mark S. Rosentraub, 2014. "The National Hockey League and Cross-Border Fandom," Journal of Sports Economics, , vol. 15(5), pages 497-518, October.
    24. John C. Leadley & Zenon X. Zygmont, 2005. "When Is the Honeymoon Over? National Basketball Association Attendance 1971-2000," Journal of Sports Economics, , vol. 6(2), pages 203-221, May.

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