Are sports teams multiproduct firms?

Stewart, Kenneth G.; Jones, J. C. H.

doi:10.1007/s00181-009-0315-5

Cited by 8 publications

(7 citation statements)

References 25 publications

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“…This value placed on a star's visibility by firms in weaker competitive positions is interesting but unexpected and may be an artefact of our data. Sports teams can be viewed as multiproduct firms with two outputs: on‐field performance and entertainment (Stewart & Jones, 2010). Within this context, a star's prior output may be more highly valued for the on‐field performance product, particularly when a team is competitive.…”

Section: Discussionmentioning

confidence: 99%

Assessing star value: The influence of prior performance and visibility on compensation strategy

Terry

McGee

Kass

et al. 2022

Human Res Mgmt Journal

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The greatest competition among rivals in many industries is not for market share but human capital. In the so-called talent war, organizations compete aggressively to attract star employees-individuals with disproportionate productivity and external visibility-in pursuit of competitive advantage. Building on human capital and resource-based view theories, we argue that firms' compensation strategies are influenced by the intangible assets that define stars. With data from Major League Baseball, we find that organizations are likely to pay higher wages to stars based on their prior performance and visibility. Furthermore, our data indicate that firm competitive position influences which of these intangible assets holds greater value for managers. We discuss the implications of these findings for organizations waging war for talent and suggest directions for future research on a matter that is far from over.

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Section: Discussionmentioning

confidence: 99%

Assessing star value: The influence of prior performance and visibility on compensation strategy

Terry

McGee

Kass

et al. 2022

Human Res Mgmt Journal

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“…Stewart and Jones (2010, p. 488) characterize teams as follows: “The essential premise of sports economics is that teams may be modeled as profit maximizing firms serving a demand for their product in their output market”; they argue that teams are actually multiproduct firms with two outputs—performance and entertainment. Yet teams are not necessarily the entity to analyze for profit motives.…”

Section: Literature Reviewmentioning

confidence: 99%

Talent Recruitment and Firm Performance

Weinberg

2016

Journal of Sports Economics

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Firms rely heavily on their investments in human capital to achieve profits. This research takes advantage of detailed information on worker performance and confidential information on firm revenue and operating costs to investigate the relationship between talent migration and firm profitability in major league sports, one of the few industries in which detailed information about the past performance of each individual worker (athlete) is known to all potential employers. I use confidential microdata from the 2007 Economic Censuses, and from the 2007 and 2008 Service Annual Surveys to investigate the link between individual worker performance and team profitability, controlling for many other aspects of the sports business, specifically taking account of the mobility of athletic “stars” and “superstars” from one team to another. The investigations in this article provide limited support for the hypothesis that hiring talented individuals (stars) will increase a firm’s profit. However, there is no convincing support for the incremental benefit of hiring superstars. The peculiar characteristics of major league sports suggest that these results are probably not generalizable.

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“…The sport industry stands out from other industries since firms, consisting generally in teams, want to maximize their profit, "serving a demand for their product in their output market" (Stewart and Jones, 2010;Weinberg, 2016), offering two outputs, namely performance and entertainment.…”

Section: Introductionmentioning

confidence: 99%

“…Economically, football is a product that customers consume attending matches or following the media and somehow it is the associations, clubs, the sports equipment industry as well as media that are producing football (Stewart and Jones, 2010;BMWi and BISp, 2015).…”

Section: Introductionmentioning

confidence: 99%

Managing sporting success and economic efficiency in the professional football: Identification of determinant factors through the academic literature

Kalemba¹,

Campa²

2017

Eur. Account. Manag. Rev.

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Football moves crowds, both fans and millions of euros. Football clubs are not any longer just sport teams that focus on winning competitions, but they have turned into complex business units with a high economic and social impact.The main purpose of this study is to conduct a review on the existing international academic literature for providing an insight into the management of sporting success and economic efficiency in the international professional football industry.Findings show that sporting success is influenced, on one hand, by human capital and positive results on an international competition level and, on the other hand by the financial support through sport organizations' related attributes and investments.Further, sporting success creates economic efficiency leading consequently to a higher profitability of football organizations. This paper can be helpful for managers, practitioners as well as academics, as currently does not exist any literature review on this topic.

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Are sports teams multiproduct firms?

Abstract: Sports economics, Hedonic price, Multi-output production, Symmetric generalized McFadden,

Cited by 8 publications

References 25 publications

Assessing star value: The influence of prior performance and visibility on compensation strategy

Assessing star value: The influence of prior performance and visibility on compensation strategy

Talent Recruitment and Firm Performance

Managing sporting success and economic efficiency in the professional football: Identification of determinant factors through the academic literature

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