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Do New Digs Mean more Wins?

Author

Listed:
  • Kevin G. Quinn
  • Paul B. Bursik
  • Christopher P. Borick
  • Lisa Raethz

Abstract

Team owners often argue that a new venue will lead to more wins for the team. This premise is examined here by modeling teams as multiproduct, profit-maximizing firms. Teams' competitive quality and playing venues are two inputs in the production of outputs (e.g., game tickets sold, media programming, etc.). The degree of input complementarity or substitutability between competitive quality and venue quality plays a critical role. The authors empirically test the effect of new venues on winning percentage for Major League Baseball (MLB), National Football League (NFL), National Basketball Association (NBA), and National Hockey League (NHL) teams, finding no significant effect except in the case of MLB teams.

Suggested Citation

  • Kevin G. Quinn & Paul B. Bursik & Christopher P. Borick & Lisa Raethz, 2003. "Do New Digs Mean more Wins?," Journal of Sports Economics, , vol. 4(3), pages 167-182, August.
    • Handle: RePEc:sae:jospec:v:4:y:2003:i:3:p:167-182
    DOI: 10.1177/1527002503251966
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    References listed on IDEAS

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    Cited by:

    1. Stefan Szymanski, 2023. "Anticipating the honeymoon: Event study estimation of new stadium effects in Major League Baseball using the imputation method," Economic Inquiry, Western Economic Association International, vol. 61(4), pages 1077-1102, October.
    2. Geoffrey Propheter, 2017. "Subsidies and Stadia’ Opulence," Journal of Sports Economics, , vol. 18(1), pages 3-18, January.
    3. Andrew W. Nutting, 2013. "Immediate Effects of On-The-Job Training and Its Intensity," Journal of Sports Economics, , vol. 14(3), pages 303-320, June.
    4. Duane W. Rockerbie & Stephen T. Easton, 2019. "Of Bricks and Bats: New Stadiums, Talent Supply, and Team Performance in Major League Baseball," Journal of Sports Economics, , vol. 20(1), pages 3-24, January.
    5. Anna Bykova & Dennis Coates, 2022. "Professional team sporting success: do economic and personal freedom provide competitive advantages?," Economics of Governance, Springer, vol. 23(3), pages 323-358, December.
    6. Andrew W. Nutting & Joseph Price, 2017. "Time Zones, Game Start Times, and Team Performance," Journal of Sports Economics, , vol. 18(5), pages 471-478, June.

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