Football, the most profitable and popular professional sport in America, is an economic powerhouse for cities, television networks, restaurants, and fans. In 2014, the National Football League (NFL) had a total revenue of $7.24 billion and strives to reach $25 billion by 2027. While a portion of the revenue is earned through television network partnerships and advertisements, ticket sales revenue still accounts for a large sum of NFL revenue. These ticket revenues assist in paying numerous team expenses; including player costs like amortized signing bonuses, performance bonuses, salaries, benefits as well as assisting in paying for team costs, stadium costs and administrative expenses. Ticket sales revenue are crucial to the longevity of a
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The determinants addressed included promotional activity, current season winning percentage, and previous season winning percentage. The secondary factors included student enrollment, city population, and miles between competing institutions. DeSchriver & Jensen estimated demand models using OLS and fixed-effect regression analysis. The study discovered as the season continued, the winning percentage of the current season plays a role in game attendance, but not until after the first three weeks. Alternatively, the study found that the previous seasons winning percentage plays a role in ticket sales revenue at the beginning of the season, but diminishes as the season progresses. The study prompted us to consider the household city median income as an impact on ticket sales revenue, as well as, utilizing the previous season home winning record over current season home winning record. The current season winning record changes for every game of the current season, therefore impacting ticket sales revenue differently every game, as well. Due to this, it was too difficult to take current season wins into consideration for our …show more content…
The study utilizes the previous season’s winning percentage, average income of the area, the population of the area, and implementation of a new stadium to decipher each factors impact on ticket prices. The study completes an empirical analysis to help professional teams adjust prices to directly capture the amount a fan is willing to pay. The study concluded a positive correlation between a team’s previous season’s winning percentage, average income of the area, population, and a team’s first-year in a new stadium and ticket prices. Thus, as any one of these increase, ticket prices will also increase a fraction of that percentage. The study identifies what impacts ticket prices, but not the effect of ticket prices on total ticket sales revenue. Therefore, we take the study a step further by identifying how the team’s previous season record, median income of area, and ticket price all impact ticket sales revenue.
The purpose of this statistical analysis is to examine potential determinants that influence NFL ticket sales revenue. The variables in this analysis are as follows: The 2013 home wins of each team (HOME), the 2014 household city median income in which the stadium is located (INCOME), and the average 2014 regular season ticket price of each team
The determinants addressed included promotional activity, current season winning percentage, and previous season winning percentage. The secondary factors included student enrollment, city population, and miles between competing institutions. DeSchriver & Jensen estimated demand models using OLS and fixed-effect regression analysis. The study discovered as the season continued, the winning percentage of the current season plays a role in game attendance, but not until after the first three weeks. Alternatively, the study found that the previous seasons winning percentage plays a role in ticket sales revenue at the beginning of the season, but diminishes as the season progresses. The study prompted us to consider the household city median income as an impact on ticket sales revenue, as well as, utilizing the previous season home winning record over current season home winning record. The current season winning record changes for every game of the current season, therefore impacting ticket sales revenue differently every game, as well. Due to this, it was too difficult to take current season wins into consideration for our …show more content…
The study utilizes the previous season’s winning percentage, average income of the area, the population of the area, and implementation of a new stadium to decipher each factors impact on ticket prices. The study completes an empirical analysis to help professional teams adjust prices to directly capture the amount a fan is willing to pay. The study concluded a positive correlation between a team’s previous season’s winning percentage, average income of the area, population, and a team’s first-year in a new stadium and ticket prices. Thus, as any one of these increase, ticket prices will also increase a fraction of that percentage. The study identifies what impacts ticket prices, but not the effect of ticket prices on total ticket sales revenue. Therefore, we take the study a step further by identifying how the team’s previous season record, median income of area, and ticket price all impact ticket sales revenue.
The purpose of this statistical analysis is to examine potential determinants that influence NFL ticket sales revenue. The variables in this analysis are as follows: The 2013 home wins of each team (HOME), the 2014 household city median income in which the stadium is located (INCOME), and the average 2014 regular season ticket price of each team