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NBA Expansion and Relocation: A Viability Study of Various Cities

Author

Listed:
  • Rascher, Daniel
  • Rascher, Heather

Abstract

An examination of possible expansion or relocation sites for the NBA is undertaken using a two-equation system requiring two-stage probit least squares to estimate. The location model forecasts the best cities for an NBA team based on the underlying characteristics of current NBA teams. The results suggest that Louisville, San Diego, Baltimore, St. Louis, and Norfolk appear to be the most promising candidates for relocation or expansion.

Suggested Citation

  • Rascher, Daniel & Rascher, Heather, 2004. "NBA Expansion and Relocation: A Viability Study of Various Cities," MPRA Paper 25740, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:25740
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    File URL: https://mpra.ub.uni-muenchen.de/25740/1/MPRA_paper_25740.pdf
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    References listed on IDEAS

    as
    1. McDonald, Mark & Rascher, Daniel, 2000. "Does Bat Day Make Cents? The Effect of Promotions on the Demand for Major League Baseball," MPRA Paper 25739, University Library of Munich, Germany.
    2. Klein, Benjamin, 1995. "The economics of franchise contracts," Journal of Corporate Finance, Elsevier, vol. 2(1-2), pages 9-37, October.
    3. Hausman, Jerry A & Leonard, Gregory K, 1997. "Superstars in the National Basketball Association: Economic Value and Policy," Journal of Labor Economics, University of Chicago Press, vol. 15(4), pages 586-624, October.
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    Cited by:

    1. Daniel, Rascher & Matt, Brown & Mark, Nagel & Chad, McEvoy, 2009. "Where did National Hockey League Fans go During the 2004-2005 Lockout?: An Analysis of Economic Competition Between Leagues," MPRA Paper 25804, University Library of Munich, Germany.
    2. Heffernan, Jackie & O'Brien, Danny, 2010. "Stakeholder influence strategies in bidding for a professional sport franchise license," Sport Management Review, Elsevier, vol. 13(3), pages 255-268, August.
    3. Daniel, Rascher, 2008. "Franchise Relocations, Expansions, and Mergers in Professional Sports Leagues," MPRA Paper 25809, University Library of Munich, Germany.
    4. 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.
    5. 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.

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    More about this item

    Keywords

    basketball; NBA; franchise location; probit; regression; econometrics; two-stage;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions

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