Sports business and multisided markets: towards a new analytical framework?

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractDespite still being younger than a decade, the theory of multisided markets has offered numerous valuable insights for the analysis of industries in which a supplier serves two distinct customer groups that are indirectly interrelated through externalities. Examples include payment systems, matching agencies, commercial media, and software platforms. However, professional sports markets have largely been neglected so far in this kind of research although they possess the characteristics of multisided markets. This conceptual paper contributes to filling this gap by describing the platform elements of professional suppliers of sports events and conceptually outlining issues where an application of this theoretical framework is likely to provide valuable insights and to add to the existing knowledge. Among these problems are integrative pricing strategies of sports clubs towards such different customer groups like attendees, broadcasters, sponsors, etc., including their welfare and antitrust implications, design decisions of sports associations in order to promote positive feedback loops among the customer groups as well as management strategies to reinforce positive externalities among customer groups and alleviate negative ones.

The impact of English Premier League broadcasts on Danish spectator demand: a small league perspective

“…A full -or highly utilized -stadium presents a positive image of the product, possibly resulting in queue-and crowding-in-effects (Feehan, 2006). This can further increase the attractiveness for (potential) sponsors and (future) television broadcasters alike (Budzinski & Satzer, 2011).…”

The Application of Sports Technology and Sports Data for Commercial Purposes

“…Football is a segmented marketplace. Budzinski and Satzer [75] argue that the business of sports is characterized as multisided markets, in which there is a strong interdependence between different business markets 20 that would engage the fans rather than just…" This citation speaks well with strategies like that of Manchester United, which aimed to strategically capitalize on players with good grounding in various market places, e.g., Park Ji-Sung from South Korea or Javier Hernández from Mexico. It is evident in the data that there is an interesting dynamic between how data influences team and player performance dynamics while influencing business dynamics, e.g., the multisided market analogy, and football economic factors as well.…”

“…Next to the simple enhancement towards cases of more than two distinct customer groups ('multisided' markets), the term 'platform' markets is preferred by some. Yet, 'two-sided' or 'multisided' respectively seem to be the established terms, wherefore we will use them in the following" ( [75], p. 69).…”

Statistical Analysis of Championship Matches Outcomes in World Wrestling Entertainment (WWE) Pay-Per-View Events

“…According to Watanabe [1], demands for sports usually come in two general forms; live attendance and PPV buy. Details can also be sourced from Borland and MacDonald [2]; Budzinski and Setzer [3]; Watanabe [4] and Tainsky et al [5] The WWE PPV events were originally for the traditional big Four WWE events (Royal Rumble, WrestleMania, Summer Slam, and Survivor Series), but the successes of the PPV events have led to a significant increase in the number of the events over the years. The PPV events organized by WWE are unique, themed, annually recurring, often based on some definite stipulations, and sometimes played based on the brand (Raw, Smackdown) or development (NXT) and most importantly, it contains the title or championship matches.…”