1 Economists Take on Sport Franchise Valuation

How big of an industry is sports? This question calls for several further definitions, such as what does “how big” mean; and how are other industries measured and not least, what do we consider “sports”. The article below takes a look at where many have started to answer the questions above, with the most visible of spectator-driven sports in North America – the Big Four leagues (NFL, MLB, NBA and NHL).

Pay special attention to the areas of finance the choose to make their argument. You do not need to get bogged down in the methods (part 2 of the piece), but make sure you understand the revenue sharing argument made in part 3 and can follow the revenue numbers and other variables in part 4.

The following is a resource at the Iowa State Libraries:

Healy, Tam & Orezam working paper on Sport Franchise Power and Valuations



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