Professional sports league franchises are both on-field competitors and business partners. In this paper, we examine whether local franchise characteristics are associated with the consumption of goods that are produced by other franchises within the same league. Specifically, we investigate how uncertainty over whether the local market team reaches the postseason affects interest in out-of-market National Football League broadcasts. We find that consumers possess a conditional interest in other league contests depending on the degree to which the local franchise is in the race to reach the playoffs. This effect increases at a diminishing rate and reaches a maximum when local franchise playoff probability is approximately 60 %.
Review of Industrial Organization – Springer Journals
Published: Aug 19, 2015
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