Using econometrics to determine factors thatinfluence attendance at NBA games Regression model to measure how mucheach variable impacts attendance Determine whether or not winningpercentage is the strongest variable
PRICE = Average ticket price for the season(as measured byTeam Marketing Report) ALLSTAR =The number of All Stars that theteam had that season CAP = If the team’s payroll was above theLuxuryTax of $70.3 million (1 or 0) WIN =Winning percentage of the team
R2 = 0.512 Adj. R2 = 0.434 Largest coefficient is forWIN. Meaning that winningpercentage greatly effects (29 times more for every %increase in winning percentage) CAP is a negative coefficient. Spending more moneydoes not necessarily increase fan attendance Ticket prices do not deter fans from attending games.Price inelastic.
If wins are still the biggest factor why dolosing teams still reach a higher attendance? Larger individual markets Player/fan preference Proximity and availability of substitutes (hockey,football, baseball) Unknown sports phenomena of expectations
Wins do equal more attendance for most teams Exceptions do exist due to larger markets,substitutes, etc. “Premium” players have little effect onattendance Historic fan base drives continued success inattendance of losing teams