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When Is the Honeymoon Over? National Basketball Association Attendance 1971-2000

Author

Listed:
  • John C. Leadley

    (Western Oregon University)

  • Zenon X. Zygmont

    (Western Oregon University)

Abstract

This article uses a Tobit analysis to test for the presence of a honeymoon effect for National Basketball Association (NBA) arenas using a pooled cross-section time series sample from 1971 to 2000. No previous NBA attendance-demand or attendance-related study tested for such an effect. The honeymoon effect increases attendance demand 15% to 20% in the first 4 years of the operation of a new arena, an increase that is similar in magnitude to recently constructed Major League Baseball stadiums. The effect is nonlinear and diminishes relatively quickly with the steady state established after Year 10. Because many NBA arenas are subsidized, the effect has public policy implications if revenue projections for a new arena ignore or overestimate the effect.

Suggested Citation

  • 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.
    • Handle: RePEc:sae:jospec:v:6:y:2005:i:2:p:203-221
    DOI: 10.1177/1527002504263399
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    References listed on IDEAS

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    3. Agha, Nola & Rascher, Daniel, 2013. "When can economic impact be positive? Nine conditions that explain why smaller sports can have bigger impacts," MPRA Paper 48016, University Library of Munich, Germany.
    4. Gregory A. Falls & Paul A. Natke & Linlan Xiao, 2022. "College football attendance in the long run: The Football Championship Subdivision," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2172-2183, September.
    5. Jason Winfree, 2009. "Owners incentives during the 2004-05 National Hockey League lockout," Applied Economics, Taylor & Francis Journals, vol. 41(25), pages 3275-3285.
    6. Mongeon, Kevin & Winfree, Jason, 2012. "Comparison of television and gate demand in the National Basketball Association," Sport Management Review, Elsevier, vol. 15(1), pages 72-79.
    7. Brad R. Humphreys & Candon Johnson, 2020. "The Effect of Superstars on Game Attendance: Evidence From the NBA," Journal of Sports Economics, , vol. 21(2), pages 152-175, February.
    8. B Buraimo & R Simmons, 2006. "Market size and attendance in English Premier League football," Working Papers 574562, Lancaster University Management School, Economics Department.
    9. 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.
    10. John Charles Bradbury, 2019. "Determinants Of Revenue In Sports Leagues: An Empirical Assessment," Economic Inquiry, Western Economic Association International, vol. 57(1), pages 121-140, January.
    11. Kevin E. Henrickson, 2012. "Spatial Competition And Strategic Firm Relocation," Economic Inquiry, Western Economic Association International, vol. 50(2), pages 364-379, April.

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