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Determinants of Professional Sports Firm Values in the United States and Europe: A Comparison Between Sports over the Period 2004-2011

Author

Listed:
  • Nicolas Scelles

    (University of Stirling)

  • Boris Helleu

    (CesamS - Centre d'étude sport et actions motrices - UNICAEN - Université de Caen Normandie - NU - Normandie Université)

  • Christophe Durand

    (CesamS - Centre d'étude sport et actions motrices - UNICAEN - Université de Caen Normandie - NU - Normandie Université)

  • Liliane Bonnal

    (CRIEF [Poitiers] - Centre de recherche sur l'intégration économique et financière - UP - Université de Poitiers = University of Poitiers)

Abstract
Since the beginning of the nineties, professional sports firm values have been estimated by American newspapers. In 2004, Forbes proposed for the first time a list of the most valuable European soccer teams. In this article, we compare the determinants of firm values in MLB, the NBA, NFL, NHL, and European soccer over the period 2004-2011. The results show only one variable for which the sign and significance are the same for all the leagues: historical sports performance, with a significantly positive impact in each league. The comparison between the United States and Europe reveals that a majority of differences seem to indicate that the determinants of team values in the United States are not the same as those in Europe. Lastly, we proposed avenues for future research: integrating an international dimension that could be measured through the number of fans on social media and player values.

Suggested Citation

  • Nicolas Scelles & Boris Helleu & Christophe Durand & Liliane Bonnal, 2013. "Determinants of Professional Sports Firm Values in the United States and Europe: A Comparison Between Sports over the Period 2004-2011," Post-Print halshs-02111067, HAL.
    • Handle: RePEc:hal:journl:halshs-02111067
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-02111067
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    References listed on IDEAS

    as
    1. Michel Aglietta & Wladimir Andreff & Bastien Drut, 2008. "Bourse et Football," Revue d'économie politique, Dalloz, vol. 118(2), pages 255-296.
    2. Roger G. Noll, 2003. "The Organization of Sports Leagues," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 19(4), pages 530-551, Winter.
    3. Donald L. Alexander & William Kern, 2004. "The Economic Determinants of Professional Sports Franchise Values," Journal of Sports Economics, , vol. 5(1), pages 51-66, February.
    4. Thomas Hoehn & Stefan Szymanski, 2010. "The Americanization of European football," Palgrave Macmillan Books, in: Football Economics and Policy, chapter 3, pages 52-96, Palgrave Macmillan.
    5. Stefan Szymanski, 2010. "The Economic Design of Sporting Contests," Palgrave Macmillan Books, in: The Comparative Economics of Sport, chapter 1, pages 1-78, Palgrave Macmillan.
    6. Christophe Durand & Loïc Ravenel & Boris Helleu, 2005. "Basket professionnel en France : approche stratégique et géomarketing," Post-Print hal-02111144, HAL.
    7. Phillip Miller, 2006. "Private Financing and Sports Franchise Values: The Case of Major League Baseball," Working Papers 0626, International Association of Sports Economists;North American Association of Sports Economists.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Gerald T. Healy III & Jing Ru Tan & Peter F. Orazem, 2020. "Measuring Market Power in Professional Baseball, Basketball, Football, and Hockey," The American Economist, Sage Publications, vol. 65(2), pages 214-231, October.
    2. Marc Rohde & Christoph Breuer, 2016. "Europe’s Elite Football: Financial Growth, Sporting Success, Transfer Investment, and Private Majority Investors," IJFS, MDPI, vol. 4(2), pages 1-20, June.
    3. Nicolas Scelles & Boris Helleu & Christophe Durand & Liliane Bonnal & Stephen Morrow, 2017. "Explaining the Number of Social Media Fans for North American and European Professional Sports Clubs with Determinants of Their Financial Value," IJFS, MDPI, vol. 5(4), pages 1-19, November.
    4. Geoffrey Propheter, 2017. "Subsidies and Stadia’ Opulence," Journal of Sports Economics, , vol. 18(1), pages 3-18, January.
    5. Zelenkov, Yu. & Solntsev, I., 2022. "Predicting the value of professional sport clubs. A study of European soccer, 2005-2018," Journal of the New Economic Association, New Economic Association, vol. 56(4), pages 28-46.
    6. Ausloos, Marcel, 2020. "Rank–size law, financial inequality indices and gain concentrations by cyclist teams. The case of a multiple stage bicycle race, like Tour de France," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 540(C).
    7. Nicolas Scelles & Boris Helleu & Christophe Durand & Liliane Bonnal & Stephen Morrow, 2017. "Explaining the Number of Social Media Fans for North American and European Professional Sports Clubs with Determinants of Their Financial Value," Post-Print halshs-02110645, HAL.
    8. Antoine Feuillet & Nicolas Scelles & Christophe Durand, 2017. "A winner’s curse in the bidding process for broadcasting rights in football? The cases of the French and UK markets," Post-Print hal-01935541, HAL.

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    More about this item

    Keywords

    Team; Forbes; Europe; Professional sports firms; United States; Value;
    All these keywords.

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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