IDEAS home Printed from https://ideas.repec.org/a/jsf/intjsf/v8y2013i4p280-293.html
   My bibliography  Save this article

Determinants of Professional Sports Firm Values in the United States and Europe: A Comparison Between Sports Over the Period 2004-2011

Author

Listed:
  • Nicolas Scelles

    (University of Sterling)

  • Boris Helleu

    (University of Caen)

  • Christophe Durand

    (University of Caen)

  • Liliane Bonnal

    (University of Poitiers)

Abstract

Since the beginning of the nineties, professional sports firm values have been estimated by American newspapers. In 2004, Forbes proposed for the first time a list of the most valuable European soccer teams. In this article, we compare the determinants of firm values in MLB, the NBA, NFL, NHL, and European soccer over the period 2004-2011. The results show only one variable for which the sign and significance are the same for all the leagues: historical sports performance, with a significantly positive impact in each league. The comparison between the United States and Europe reveals that a majority of differences seem to indicate that the determinants of team values in the United States are not the same as those in Europe. Lastly, we proposed avenues for future research: integrating an international dimension that could be measured through the number of fans on social media and player values.

Suggested Citation

  • Nicolas Scelles & Boris Helleu & Christophe Durand & Liliane Bonnal, 2013. "Determinants of Professional Sports Firm Values in the United States and Europe: A Comparison Between Sports Over the Period 2004-2011," International Journal of Sport Finance, Fitness Information Technology, vol. 8(4), pages 290-293, November.
    • Handle: RePEc:jsf:intjsf:v:8:y:2013:i:4:p:280-293
    as

    Download full text from publisher

    File URL: http://www.fitinfotech.com/IJSF/IJSFbackissueWVU.tpl
    Download Restriction: Full-text download requires subscription from FIT.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Michel Aglietta & Wladimir Andreff & Bastien Drut, 2008. "Bourse et Football," Revue d'économie politique, Dalloz, vol. 118(2), pages 255-296.
    2. Roger G. Noll, 2003. "The Organization of Sports Leagues," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 19(4), pages 530-551, Winter.
    3. Donald L. Alexander & William Kern, 2004. "The Economic Determinants of Professional Sports Franchise Values," Journal of Sports Economics, , vol. 5(1), pages 51-66, February.
    4. Thomas Hoehn & Stefan Szymanski, 2010. "The Americanization of European football," Palgrave Macmillan Books, in: Football Economics and Policy, chapter 3, pages 52-96, Palgrave Macmillan.
    5. Stefan Szymanski, 2010. "The Economic Design of Sporting Contests," Palgrave Macmillan Books, in: The Comparative Economics of Sport, chapter 1, pages 1-78, Palgrave Macmillan.
    6. Christophe Durand & Loïc Ravenel & Boris Helleu, 2005. "Basket professionnel en France : approche stratégique et géomarketing," Post-Print hal-02111144, HAL.
    7. Phillip Miller, 2006. "Private Financing and Sports Franchise Values: The Case of Major League Baseball," Working Papers 0626, International Association of Sports Economists;North American Association of Sports Economists.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gerald T. Healy III & Jing Ru Tan & Peter F. Orazem, 2020. "Measuring Market Power in Professional Baseball, Basketball, Football, and Hockey," The American Economist, Sage Publications, vol. 65(2), pages 214-231, October.
    2. Marc Rohde & Christoph Breuer, 2016. "Europe’s Elite Football: Financial Growth, Sporting Success, Transfer Investment, and Private Majority Investors," IJFS, MDPI, vol. 4(2), pages 1-20, June.
    3. Nicolas Scelles & Boris Helleu & Christophe Durand & Liliane Bonnal & Stephen Morrow, 2017. "Explaining the Number of Social Media Fans for North American and European Professional Sports Clubs with Determinants of Their Financial Value," IJFS, MDPI, vol. 5(4), pages 1-19, November.
    4. Geoffrey Propheter, 2017. "Subsidies and Stadia’ Opulence," Journal of Sports Economics, , vol. 18(1), pages 3-18, January.
    5. Zelenkov, Yu. & Solntsev, I., 2022. "Predicting the value of professional sport clubs. A study of European soccer, 2005-2018," Journal of the New Economic Association, New Economic Association, vol. 56(4), pages 28-46.
    6. Ausloos, Marcel, 2020. "Rank–size law, financial inequality indices and gain concentrations by cyclist teams. The case of a multiple stage bicycle race, like Tour de France," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 540(C).
    7. Nicolas Scelles & Boris Helleu & Christophe Durand & Liliane Bonnal & Stephen Morrow, 2017. "Explaining the Number of Social Media Fans for North American and European Professional Sports Clubs with Determinants of Their Financial Value," Post-Print halshs-02110645, HAL.
    8. Antoine Feuillet & Nicolas Scelles & Christophe Durand, 2017. "A winner’s curse in the bidding process for broadcasting rights in football? The cases of the French and UK markets," Post-Print hal-01935541, HAL.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nicolas Scelles & Boris Helleu & Christophe Durand & Liliane Bonnal, 2016. "Professional Sports Firm Values," Journal of Sports Economics, , vol. 17(7), pages 688-715, October.
    2. Wladimir Andreff, 2009. "Équilibre compétitif et contrainte budgétaire dans une ligue de sport professionnel," Revue économique, Presses de Sciences-Po, vol. 60(3), pages 591-633.
    3. Pehr‐Johan Norbäck & Martin Olsson & Lars Persson, 2021. "Talent development and labour market integration in European football," The World Economy, Wiley Blackwell, vol. 44(2), pages 367-408, February.
    4. Egon Franck, 2024. "The proponents of the European Football Super League have switched from a proposal suggesting that permanent members self-govern their (almost) closed competition to a proposal maintaining the concept," Working Papers 403, University of Zurich, Department of Business Administration (IBW).
    5. Sébastien Dessus & Gaël Raballand, 2011. "L'Etat peut-il rendre compétitif les clubs de football français," Documents de travail du Centre d'Economie de la Sorbonne 11048, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    6. Norbäck, Pehr-Johan & Olsson, Martin & Persson, Lars, 2016. "Talent Development and Labour Market Integration: The Case of EU Football," Working Paper Series 1126, Research Institute of Industrial Economics, revised 14 Mar 2018.
    7. Martin Grossmann & Helmut Dietl & Markus Lang, 2010. "Revenue Sharing and Competitive Balance in a Dynamic Contest Model," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 36(1), pages 17-36, February.
    8. Gerald T. Healy III & Jing Ru Tan & Peter F. Orazem, 2020. "Measuring Market Power in Professional Baseball, Basketball, Football, and Hockey," The American Economist, Sage Publications, vol. 65(2), pages 214-231, October.
    9. Markus LANG & Alexander RATHKE & Marco RUNKEL, 2010. "The Economic Consequences Of Foreigner Rules In National Sports Leagues," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 31, pages 47-64.
    10. Peter-J. Jost, 2021. "Competitive Balance and the Away Goals Rule During Extra Time," Journal of Sports Economics, , vol. 22(7), pages 823-863, October.
    11. Braun, Erik & Gyimesi, András, 2021. "Van-e esélyük a feljutó csapatoknak a bennmaradásra? Az európai labdarúgó-bajnokságok összehasonlítása az első osztály előnye alapján [Do novice top teams have a chance of remaining?]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(7), pages 863-889.
    12. Wladimir Andreff, 2014. "Building Blocks for a Disequilibrium Model of a European Team Sports League," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00971782, HAL.
    13. Gürtler Oliver, 2007. "A Rationale for the Coexistence of Central and Decentral Marketing in Team Sports," German Economic Review, De Gruyter, vol. 8(1), pages 89-106, February.
    14. Konrad, Kai A. & Kovenock, Dan, 2009. "Multi-battle contests," Games and Economic Behavior, Elsevier, vol. 66(1), pages 256-274, May.
    15. Raul Caruso & Francesco Addesa & Marco Di Domizio, 2019. "The Determinants of the TV Demand for Soccer: Empirical Evidence on Italian Serie A for the Period 2008-2015," Journal of Sports Economics, , vol. 20(1), pages 25-49, January.
    16. 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.
    17. Helmut Dietl & Egon Franck & Martin Grossmann & Markus Lang, 2009. "Contest Theory and its Applications in Sports," Working Papers 0029, University of Zurich, Center for Research in Sports Administration (CRSA).
    18. Jeroen Schokkaert & Johan Swinnen, 2016. "Uncertainty of Outcome Is Higher in the Champions League Than in the European Cup," Journal of Sports Economics, , vol. 17(2), pages 115-147, February.
    19. Helmut M. Dietl & Markus Lang & Stephan Werner, 2010. "The Effect of Luxury Taxes on Competitive Balance, Club Profits, and Social Welfare in Sports Leagues," International Journal of Sport Finance, Fitness Information Technology, vol. 5(1), pages 41-51, February.
    20. Thomas Peeters & Stefan Szymanski, 2014. "Financial fair play in European football [v. National Football League, 560 (The Supreme Court May 24, 2010)]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 29(78), pages 343-390.

    More about this item

    Keywords

    professional sports firms; value; United States; Europe; Forbes;
    All these keywords.

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jsf:intjsf:v:8:y:2013:i:4:p:280-293. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Victor Matheson (email available below). General contact details of provider: http://www.fitinfotech.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.