Title: Revenue generation in professional sport: a diagnostic analysis

Authors: Norman J. O'Reilly, John P. Nadeau

Addresses: School of Sports Administration, Faculty of Management, Laurentian University, 935 Ramsey Lake Road, Sudbury, Ontario, P3E 2C6, Canada. ' Eric Sprott School of Business, Carleton University, 1125 Colonel By Drive, Ottawa, Ontario K1S 5B6, Canada

Abstract: Consistent with the literature, the current research suggests that a myriad of factors contribute to the revenue generation ability of major professional sport teams. Diagnostic analysis on the 2002–2003 National Hockey League, National Basketball Association, National Football League, and Major League Baseball seasons uncovers the antecedents of a measured deviation. Over 35 potential independent variables were identified and reduced to 13 factors. Linear regression identifies eight factors significantly related to revenue generation; namely Home Game Experience, Heritage, Market Support, Winning, Competition, Market Characteristics, Market Age and Radio Appeal. Results suggest that product and place considerations are most important in achieving revenue while promotion and price considerations play only a minor role. In this regard, managers of professional sport teams are provided with guidance. Recommendations for future work include alternate ways of operationalising variables and developing a more sophisticated model to represent both direct and indirect relationships.

Keywords: professional sport; sport marketing; revenue generation; sport management; marketing mix; National Hockey League; National Basketball Association; National Football League; Major League Baseball; economic success; financial viability; North America; sports teams.

DOI: 10.1504/IJSMM.2006.010564

International Journal of Sport Management and Marketing, 2006 Vol.1 No.4, pp.311 - 330

Published online: 01 Aug 2006 *

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