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The value of competitioncompetitive competition. Thus all team managers maygain from increased competitiveness among leaguemanagers in the form of higher attendance andincreased sponsorship activity. These benefits mayhelp all teams achieve a degree of profitability.This study was conducted with data from NMPLs,and as such these findings may not be generalisableto major professional leagues or amateur sportsleagues. However, by using the sample frame ofNMPLs, we were able to isolate the effects ofcompetitive balance from other factors that mayinfluence attendance, such as media coverage andstar player attraction in major professional leagues,and fan identity in college sports.Since this study used exclusively archival data, theresearch was limited by the availability of that data.Other league-related predictor variables of interestinclude the percentage of the season’s games playedat weekends and the prices of tickets. We suspect thatweekend games see higher attendances than gamesplayed during the week because of the greater amountof disposable time available to customers at theweekend. Since this data was only available for twoleagues, NLL and AFL, it was not included here.Historical ticket price data are nearly non-existent forthe leagues studied here. We could derive a leagueaverage ticket price for the most recent season.However, ticket prices from as recent as five years agoare not readily available. As price is one of theelements of the marketing mix, its effects should bestudied in future marketing research.Finally, this study shows that people value leaguemanagement efforts to provide a suspenseful outcome.This study is consistent with conclusions from otherstudies on recreational pursuits (Arnould & Price,1993) as well as major professional sports leagues(Holt, 1995). As fans demonstrate consistentconsumption, sponsors follow. Sponsors allocatepromotional dollars to effectively and efficiently reachlarge numbers of consumers. A properly managedsports league will have a large audience (i.e. fans)because the league can attract them by offering acompelling product. Regardless of individual or teamsport, non-major or major professional league, thecreation and maintenance of a compelling productremains the top marketing goal for leaguemanagement.© 2009 International Marketing ReportsBiographiesMichael A. Levin (PhD Texas Tech University) is anassistant professor of marketing at Otterbein College.His research interests include effectiveness andefficiency at the individual, organisational and societallevels. His work has appeared in MarketingManagement Journal.Robert E McDonald (PhD University of Connecticut) isUnited Supermarkets Professor of Marketing at RawlsCollege of Business, Texas Tech University. Hisresearch interests include strategy, organisationallearning, innovation, non-profit organisations, brandingand the scholarship of teaching and learning. Hiswork has appeared in the Journal of World Business,the Journal of Advertising and the Journal ofMacromarketing.RESEARCH PAPER● OCTOBER 2009 ● International Journal of Sports Marketing & Sponsorship21
The value of competitionRESEARCH PAPERReferencesArnett, D.B. & Laverie, D.A. (2000) Fan characteristics andsporting event attendance: examining variance in attendance,International Journal of Sports Marketing and Sponsorship 2(3),219-238.Arnould, E.J. & Price, L.P. (1993) River magic: extraordinaryexperience and the extended service encounter, Journal ofConsumer Research 20(1), 24-45.Australian Football League (2005) Club financial review.Retrieved from: http://afl.com.au.Baade, R.A. & Tiehen, L.J. (1990) An analysis of major leaguebaseball attendance 1969-1987, Journal of Sport and SocialIssues 14(1), 14-32.Baimbridge, M. (1997) Match attendance at Euro 96: was thecrowd waving or drowning? Applied Economic Letters 4(9),555-558.Baimbridge, M. (1998) Outcome uncertainty in sportingcompetition: the Olympic Games 1896-1996, AppliedEconomics Letters 5(3), 161-165.Baird, K. (2004) Dominance in college in football and the role ofscholarship restrictions, Journal of Sports Management 18(3),217-235.Bennett, R.W. & Fizell, J.L. (1995) Telecast deregulation andcompetitive imbalance: regarding NCAA division I football,American Journal of Economics and Sociology 54(2), 183-199.Berri, D.J., Schmidt, M.B. & Brook, S.L. (2004) Stars at thegate: the impact of star power on NBA gate revenues, Journal ofSports Economics 5(1), 33-50.Borland, J. (1987) The demand for Australian Rules Football,Economic Record 63(182), 87-89.Borland, J. & Lye, J. (1992) Attendance at Australian RulesFootball: a panel study, Applied Economics 24(9), 1053-1058.Boyd, T.C. & Krehbiel, T.C. (2003) Promotion timing in majorleague baseball and the stacking effects of factors that increasegame attractiveness, Sports Marketing Quarterly 12(3),173-183.Cocco, A. & Jones, J.C.K. (1997) On going south: theeconomics of survival and relocation of small market NHLfranchises in Canada, Applied Economics 29(11), 1537-1552.Deighton, J. (1992) The consumption of performance, Journalof Consumer Research 19(3), 362-372.DeSchriver, T. (1999) Factors affecting spectator attendance atNCAA division II football contests, International Sports Journal3(2), 55-65.Dobson, S., Goddard, J. & Wilson, J.O.S. (2001) Leaguestructure and match attendances in English Rugby League,International Review of Applied Economics 15(3), 335-351.Downward, P. & Dawson, A. (2000) The Economics ofProfessional Team Sports. New York: Routledge.Ferguson, D.G., Stewart, K., Jones, J.C.H. & LeDressay, A.(1991) The pricing of sports events: do teams maximise profit?The Journal of Industrial Economics 29(3), 297-310.Fink, J.S., Trail, G.T. & Anderson, D. (2002) Environmentalfactors associated with spectator attendance and sportconsumption behaviour: gender and team differences, SportMarketing Quarterly 11(1), 8-19.Fort, R. (2003) Sports Economics. Upper Saddle River, NJ:Prentice Hall.Garcia, J. & Rodriguez, P. (2002) Determinant of football matchattendance revisited: empirical evidence from the SpanishFootball League, Journal of Sports Economics 3(1), 18-38.Greenstein, T.M. & Marcum, J.P. (1981) Factors affectingattendance of major league baseball: team performance, Reviewof Sport & Leisure 6(2), 21-34.Hansen, H. & Gauthier, R. (1989) Factors affecting attendanceat professional sports events, Journal of Sports Management3(1), 15-32.Holt, D.B. (1995) How consumers consume: a typology ofconsumption practices, Journal of Consumer Research 22(3),1-16.Hunt, S.D. (2000) A General Theory of Competition. ThousandOaks, CA: Sage Publications.Hunt, S.D. & Morgan, R.M. (1995) The comparative advantagetheory of competition, Journal of Marketing 59 (April), 1-15.Hunt, S.D. & Morgan, R.M. (1996) The resource-advantagetheory of competition: dynamics, path, dependencies, andevolutionary dimensions, Journal of Marketing 60 (October),107-114.Hunt, S.D. & Morgan, R.M. (1997) Resource-advantage theory:a snake swallowing its tail or a general theory of competition?Journal of Marketing 61(October), 74-82.Hynds, M. & Smith, I. (1994) The demand for test matchcricket, Applied Economic Letters 1(7), 103-106.22 International Journal of Sports Marketing & Sponsorship ● OCTOBER 2009 ●
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