Sports Economics: Current Research

By John Fizel; Elizabeth Gustafson et al. | Go to book overview

Tony Gwynn to choose to remain in small markets and be underpaid.


NOTES

The authors thank Rodney Fort and John Fizel for comments on earlier drafts of this chapter.

1.
These criteria are set by the Major League Baseball Expansion Committee ( Nakarmura, 1994). Twenty-one of the twenty-eight owners must approve the idea of expansion, and then a vote on the cities takes place.
2.
The history of Major League Baseball has revealed several recent periods of expansion. The American and National Leagues consisted of 16 teams in 1968, but as the year 2000 approaches, there are thirty teams with homes in the United States and Canada, and two more expansion franchises, although not yet announced, appear inevitable some time after the two newest teams begin play in 1998.
3.
Up until 1980, individual team owners had veto power to prevent the incursion of new or relocated teams, but this has now been replaced by a three-fourths majority vote. However, in practice, "expansion into an existing territory can be blocked by one or at most three existing team owners" ( Quirk and Fort, 1992, p. 300).
4.
For example, see the studies by Baade and Dye ( 1988, 1990).
5.
The results from the logit model are available upon request from Bruggink. All estimated models exhibit a good fit and correct signs on the coefficients.
6.
The Baltimore/ Washington, DC area is an exception to this rule because the Baltimore Orioles originally infringed on the Washington Senators' territory when the former relocated from St. Louis. Because DC has since lost its team through relocation, MLB officials have acknowledged its potential for rebirth of a franchise.
7.
For a city to increase the "expected number of teams" from 0.3 to 0.5 (which would move it from a wannabee to a real contender), it would have to increase its population by 1.5 million or move itself 222 miles further away from its current location.
8.
For the combined Baltimore/ Washington, DC market, the expected value of ( MLB - 1) will be used to make predictions for the Washington, DC/ northern Virginia market. The -1 represents the Orioles.

-59-

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