Chapter 6. Just remember Karl “Carl” Pearson Let’s run some correlations! Analyze Correlate ▪ Bivariate

Build ValueChapter 6

TeamSportsMarketing.com

SPSS is still fun….

Just remember Karl “Carl” Pearson


What factors are correlated with attendance?

Let’s run some correlations!Analyze

Correlate▪Bivariate


What factors predict attendance?

Let’s run some multiple regressions!Analyze

Regression▪ Linear


What kinda dang deal is that?


Must be multicollinearity!!


Larger VIF scores indicate multicollinearity


We know they’re positively correlated…so these variables can’t be negatively related to attendance.


Independent Variables

Current team winning percentage: number of wins divided by total games played for the current season.Prior team winning percentage: number of wins divided by total games played for the last season.Team player payroll: total salaries paid to players each year.Stadium quality: the absolute value of the median of range of stadium construction (1912 to present year) minus the year the stadium was built.Fan Cost Index (FCI): the average cost of four tickets (two adults + two children) + four small soft drinks + two small beers + four hot dogs + two programs + parking + two adult-size caps.Income per capita: the average annual income in the metropolitan statistical area (MSA)Population Franchise Index (PFI): (population/NYC population) + (franchises in city/8) + (2 if two MLB teams; 0 if only 1)


The final solution

Dependent Variable: Attendance as % of MLB Stadium Capacity 2000-2009 Independent Variables Standardize

d Beta

t-value Sig.(1-tail)

Stadium Quality .302 6.35 .001

Payroll (Current Yr) .241 3.80 .001

Winning % Current Year .215 4.49 .001

Winning % Previous Year .190 3.82 .001

Population+franchises+2 teams .154 2.90 .001

Fan Cost Index: Current Year .107 1.65 .050

Income Per Capita .085 1.71 .042

Explained Variance (R2) for Attendance = 57.7%

Explained Variance (R2) of Attendance for next year’s prices (FCI) = 37.8%


Last year’s attendance

Predicts this year’s prices. So, what do we learn from MLB data?

What drives attendance and allows teams to charge higher prices?

1. Stadium quality2. Star players3. Winning (last year and this year)4. Population & rivalries5. Perceived ticket value6. Per capita income


In what sports are facilities more important? Why?

BaseballBasketballHockeySoccerFootball


Is winning everything?

What about the Florida Marlins and Tampa Bay Rays?

Is it just a Florida thing?

Or do they just have crummy stadiums and get rid of their star players?


What does this tell us?

Marlins Attendance

1993 37,838

1994 33,695

1995 23,783

1996 21,565

1997 29,190

1998 21,363

1999 16,906

2000 15,134

2001 15,765

2002 10,038

2003 16,290

2004 22,091

2005 22,792

What years did the Marlins win the World Series? What did this do for them? Why?


Population & Rivalry

Why do you think having rivalry teams in Chicago, LA, NYC, and San Francisco helps attendance?


Why do teams offer discounts?

Sports organizations are able to charge higher prices when they have quality venues, star players, winning teams, recent winning seasons, and larger populations from which to draw.

So, which organizations are bound to be charging lower prices?


Strategic marketing planning

Analyzing the environment (competition, laws/regulations, society/culture, technology, and the economy),

Determining target markets, and

Designing marketing mixes (product, price, promotion, place) to meet the needs/wants of target markets.

Why did the XFL fail?

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Chapter 6. Just remember Karl “Carl” Pearson Let’s run some correlations! Analyze Correlate ▪ Bivariate