Stars at the Gate

TLDR

The NBA has the lowest competitive balance among the four major North American professional sports leagues. The study investigates how NBA star players influence fan interest to sustain consumer demand. Star power’s effect on fan interest appears only when using a multiplicative model; linear models miss this relationship, and other related results are also reported.

Abstract

Investigations into the level of competitive balance within the four major North American professional team sports leagues suggest that the National Basketball Association (NBA) exhibits the lowest level of competitive balance. Given the role competitive balance plays in maintaining consumer demand, the authors examine the role the star attractions of the NBA play in promoting fan interest. The evidence presented suggests the choice of functional form alters the significance of the relationships uncovered. Specifically, the significance of star power is only uncovered in a multiplicative model rather than in the commonly employed linear form. Additional empirical results are reported in the text.