NFL Market Research

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NFL Market Research

  1. 1. Marketing Analysis The affects of Team Performance on Monetary Value Alexandra Daher Karen Hernandez Christopher Mowbray
  2. 2. Table of Contents <ul><li>Background </li></ul><ul><li>Objectives of Study </li></ul><ul><li>Methodology </li></ul><ul><li>Hypothesis Questions/Analysis </li></ul><ul><li>Conclusions </li></ul><ul><ul><li>Hypothesis Testing </li></ul></ul><ul><ul><li>Outside Factors </li></ul></ul>
  3. 3. Background <ul><li>Largest American Football League in the World. </li></ul><ul><li>Formed in 1920 </li></ul><ul><ul><li>11 Teams </li></ul></ul><ul><ul><li>Ohio Akron Pros </li></ul></ul><ul><ul><li>Canton Bulldogs </li></ul></ul><ul><ul><li>Cleveland Tigers Just to name a few… </li></ul></ul><ul><ul><li>Dayton Triangles </li></ul></ul><ul><li>Today the League consist of 32 Teams </li></ul><ul><li>2 conferences (AFC, NFC) </li></ul><ul><ul><li>4 Subdivisions of 4 teams (NORTH, SOUTH, EAST, WEST) </li></ul></ul><ul><li>17 week schedule, 16 games </li></ul><ul><ul><li>Teams play all 3 other teams in their division twice </li></ul></ul><ul><li>6 teams with the best record from each conference play in </li></ul><ul><li>the single elimination playoffs to ultimately play in the Super </li></ul><ul><li>Bowl. </li></ul>
  4. 4. Objectives of Study <ul><li>Overall Objective </li></ul><ul><li>Gain a better understanding of all the factors influencing team performance and monetary value during the NFL, AFC 2004 season. </li></ul><ul><li>Objective 1 </li></ul><ul><li>Identify correlations between performance and monetary values. </li></ul><ul><li>In regards to; 2004 revenue, franchise value, made playoffs, 2004 record, points per game, penalty yards, total yards, yards per game, passing yards, team id, total first downs, time of possession. </li></ul><ul><li>Objective 2 </li></ul><ul><li>Identify the differences between the AFC and NFC. </li></ul><ul><li>Objective 3 </li></ul><ul><li>Identify what factors influence franchise revenue for the redskins. </li></ul>
  5. 5. Objective 1 (In Detail): Correlation between Performance and Monetary Value <ul><li>Ho: There is no relationship between performance and monetary value. </li></ul><ul><li>Ha: There is a relationship between performance and monetary value. </li></ul>
  6. 6. Objective 1 <ul><li>There corresponding correlation values were .766, -.465, and .375 respectively </li></ul>
  7. 7. Objective 1 <ul><li>The next test we ran was to make sure that teams making the playoffs generated higher revenue. </li></ul><ul><li>Average revenue of 169.15 million for teams making playoffs </li></ul><ul><li>Average revenue was 162.25 million for teams not making the playoffs </li></ul><ul><li>Sig. value of .417 which is not significant. </li></ul>
  8. 8. Objective 1 <ul><li>Ho: There is no relationship between performance and monetary value. </li></ul><ul><li>Ha: There is a relationship between performance and monetary value. </li></ul><ul><li>Based on the results of both tests we can accept our null hypothesis. </li></ul><ul><li>There is no relationship between performance and monetary value. </li></ul>
  9. 9.   Objective 2(In Detail): Identify the differences between AFC and NFC <ul><li>We wanted to get a better understanding and idea about how similar and different the conferences were. </li></ul><ul><li>Differences in revenue. </li></ul><ul><li>Ho: NFC generates the same amount of revenue as the AFC does. </li></ul><ul><li>Ha: NFC generates more revenue than the AFC. </li></ul>
  10. 10. Objective 2 <ul><li>AFC had an average 2004 revenue of 164.44 million dollars </li></ul><ul><li>the NFC had an average 2004 revenue of 168.69 million dollars. </li></ul><ul><li>reject our null hypothesis and accept the alternative </li></ul><ul><li>The NFC had more revenue than the AFC. </li></ul>
  11. 11. Objective 2 <ul><li>Ho: The NFC has a better 2004 average record than the AFC. </li></ul><ul><li>Ha: The NFC does not have a higher 2004 average record than the AFC. </li></ul><ul><li>AFC had a higher average record in 2004 of .547 </li></ul><ul><li>NFC had a 2004 average record of .453 </li></ul>
  12. 12. Objective 2 <ul><li>Ho: The NFC generates a higher average yards per game than the AFC does. </li></ul><ul><li>Ha: The NFC does not have higher average yards per game than the AFC does . </li></ul><ul><li>The average for the NFC was 226.7 yards per game </li></ul><ul><li>The AFC had 223.84 yards per game. </li></ul><ul><li>Accept the null hypothesis! </li></ul><ul><li>the NFC has a higher average yards per game than the AFC. </li></ul>
  13. 13. Objective 2 <ul><li>Ho: The NFC generates more points per game than the AFC does on average. </li></ul><ul><li>Ha: The NFC does not generate more points per game than the AFC does on average. </li></ul><ul><li>Results show that the NFC generates fewer points per game on average than the AFC does </li></ul><ul><li>Reject the null accept the alternative. </li></ul>
  14. 14. Objective 3 (In detail): Factors that influence the Redskins <ul><li>Redskins had a significantly higher franchise value and revenue for the 2004 year compared to any other team. </li></ul><ul><li>We created a Z-score. </li></ul><ul><li>After examining all the teams only one team was considered an outlier, that team was the Redskins with a Z-score of 3.26. </li></ul>
  15. 15. Conclusion <ul><li>Why were Relationships Insignificant? </li></ul><ul><ul><li>2004 Revenue is most likely a direct outcome from 2003 values </li></ul></ul><ul><ul><li>Most revenue comes from outside factors </li></ul></ul><ul><ul><ul><li>Ticket Sales, Concession Sales, Parking, Stadium Size, Advertisement and Promotion </li></ul></ul></ul><ul><li>Star Player </li></ul><ul><ul><li>Tom Brady (Ticket sales boosted) </li></ul></ul><ul><li>Stadium Size </li></ul><ul><ul><li>A stadium that holds 91,000 will most likely generate more revenue than a stadium that holds 36,000. </li></ul></ul><ul><li>Location </li></ul><ul><ul><li>Locations next to another football team ( Competition) </li></ul></ul><ul><ul><ul><li>Denver Broncos vs. New York Jets </li></ul></ul></ul><ul><ul><li>City vs. Rural area MORE FANS, MORE MONEY </li></ul></ul><ul><li>Previous year performance ( Making playoffs matters for PR) </li></ul><ul><li>Conference makes a big deal </li></ul><ul><li>Stadium and Weather have an affect on rushing yards, passing yards. </li></ul>
  16. 16. Conclusion <ul><ul><li>Hall of Famer Coach </li></ul></ul><ul><ul><ul><li>Joe Gibbs </li></ul></ul></ul><ul><ul><li>Stadium Size </li></ul></ul><ul><ul><ul><li>92,000 Largest football stadium in the NFL. </li></ul></ul></ul><ul><ul><li>Location </li></ul></ul><ul><ul><ul><li>Washington DC, (High Population) </li></ul></ul></ul><ul><ul><li>History </li></ul></ul><ul><ul><li>One of the oldest football teams in the NFL </li></ul></ul><ul><ul><li>1932, called “Boston Football Braves” </li></ul></ul><ul><ul><ul><li>Played in Boston at Fenway Park </li></ul></ul></ul><ul><ul><ul><li>Moved to DC for better attendance </li></ul></ul></ul>

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