This study attempts to explain the effect geographical location has on a National Hockey League (NHL) team's revenue. The effect location has will be compared to other determinants of revenue in the NHL. Data sets were collected from the 2006-2007 and the 2007-2008 seasons. Regression results were analyzed from these data sets. This study found that attendance, city population, and win percentage has a positive and significant effect on revenue.
The National Hockey League (NHL) has had troubles in the past with turning a profit. However, recently the NHL has improved revenues since the lockout season of 2004- 2005. Even though the league as a whole is doing better, about half the teams each year still have negative revenues. As many different sport studies have shown in the past, that winning teams are able to draw more fans, and thus, more revenue as well. The sole purpose of this study is to find out what helps a team win hockey games, which creates higher attendance, and ultimately, higher revenue. This study accomplishes this by using Ordinary Least Squares (OLS) and Generalized Method of Moments (GMM) regression along with data from the 2006-2009 seasons to discover the factors that contribute to a NHL team's success. One major finding of this study is that Major Penalties, or more specifically fighting, no longer has a significant impact on helping a team win. By discovering the factors that help a team win, each team can go after the optimal players that will contribute most to winning games.
In 2000, three seasons after the institution of a revenue sharing plan, Major League Baseball commissioned the Blue Ribbon Panel to assess competitive balance within the league. Their report found that small market teams are at a considerable disadvantage due to the larger revenue bases of teams located in more heavily populated areas. However, these results have often been challenged. This thesis builds upon existing models in an attempt to determine the extent to which market size and local revenue independently affect competitive balance. Additionally, it seeks to analyze any effects of baseball's revenue sharing plan on competitive balance. While the findings support the claim that revenue sharing enhances competitive balance, they fail to establish market size as a positive determinant of local revenue.