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Valuation of NFL Franchises
Valuation of NFL Franchises Author: Sam Hill Advisor: Connel Fullenkamp Acknowledgement: Samuel Veraldi Honors thesis submitted in partial fulfillment of the requirements for Graduation with Distinction in Economics in Trinity College of Duke University Duke University Durham, North Carolina April 2010 1 Abstract This thesis will focus on the valuation of American professional sports teams, specifically teams in the National Football League (NFL). Its first goal is to analyze the growth rates in the prices paid for NFL teams throughout the history of the league. Second, it will analyze the determinants of franchise value, as represented by transactions involving NFL teams, using a simple ordinary-least-squares regression. It also creates a substantial data set that can provide a basis for future research. 2 Introduction This thesis will focus on the valuation of American professional sports teams, specifically teams in the National Football League (NFL). The finances of the NFL are unparalleled in all of professional sports. According to popular annual rankings published by Forbes Magazine (http://www.Forbes.com/2009/01/13/nfl-cowboys-yankees-biz-media- cx_tvr_0113values.html), NFL teams account for six of the world’s ten most valuable sports franchises, and the NFL is the only league in the world with an average team enterprise value of over $1 billion. In 2008, the combined revenue of the league’s 32 teams was approximately $7.6 billion, the majority of which came from the league’s television deals. Its other primary revenue sources include ticket sales, merchandise sales, and corporate sponsorships. The NFL is also known as the most popular professional sports league in the United States, and it has been at the forefront of innovation in the business of sports. -
Dodgers and Giants Move to the West: Causes and Effects an Honors Thesis (HONRS 499) by Nick Tabacca Dr. Tony Edmonds Ball State
Dodgers and Giants Move to the West: Causes and Effects An Honors Thesis (HONRS 499) By Nick Tabacca Dr. Tony Edmonds Ball State University Muncie, Indiana May 2004 May 8, 2004 Abstract The history of baseball in the United States during the twentieth century in many ways mirrors the history of our nation in general. When the Brooklyn Dodgers and New York Giants left New York for California in 1957, it had very interesting repercussions for New York. The vacancy left by these two storied baseball franchises only spurred on the reason why they left. Urban decay and an exodus of middle class baseball fans from the city, along with the increasing popularity of television, were the underlying causes of the Giants' and Dodgers' departure. In the end, especially in the case of Brooklyn, which was very attached to its team, these processes of urban decay and exodus were only sped up when professional baseball was no longer a uniting force in a very diverse area. New York's urban demographic could no longer support three baseball teams, and California was an excellent option for the Dodger and Giant owners. It offered large cities that were hungry for major league baseball, so hungry that they would meet the requirements that Giants' and Dodgers' owners Horace Stoneham and Walter O'Malley had asked for in New York. These included condemnation of land for new stadium sites and some city government subsidization for the Giants in actually building the stadium. Overall, this research shows the very real impact that sports has on its city and the impact a city has on its sports. -
The Steam Roller
THE COFFIN CORNER: Vol. 2, No. 3 (1980) THE STEAM ROLLER by John Hogrogian The state of Rhode Island sits squarely in the shadow of Boston as far as major-league professional sports is concerned. Ocean State residents generally take a rooting interest in the Red Sox, Patriots, Celtics, and Bruins. But more than half a century ago, in 1928, Rhode Island had its own National Football League champions, the Providence Steam Roller. The story of that team is the story of an era of professional football much different from that of today. In the Roaring Twenties, the American public found a host of popular heroes in its sporting greats. Standing with Charles Lindbergh on the pedestal of unalloyed admiration were such men as baseball player Babe Ruth, boxer Jack Dempsey, and tennis player Bill Tilden. College football players also shared in this adulation, with Red Grange of Illinois, Ernie Nevers of Stanford, and the Four Horsemen of Notre Dame national figures because of their gridiron exploits. College football was an immensely popular spectator sport, with teams such as Notre Dame, Stanford, Yale, and Dartmouth drawing huge followings both in person and through the newspapers and newsreels. Professional football, in stark contrast, was struggling to survive, a neglected stepchild in the sports boom. The National Football League was entering only its ninth season in the fall of 1928, and instead of roaring crowds in huge metropolitan stadia, small, intimate audiences in mostly smaller fields viewed the league's contests. Pro football held the same place in 1928 that pro track and field holds today, a fledgling professional sport living in the shadow of a popular collegiate version. -
National Football League Franchise Transactions
THE COFFIN CORNER: Vol. 4 (1982) The following article was originally published in PFRA's 1982 Annual and has long been out of print. Because of numerous requests, we reprint it here. Some small changes in wording have been made to reflect new information discovered since this article's original publication. NATIONAL FOOTBALL LEAGUE FRANCHISE TRANSACTIONS By Joe Horrigan The following is a chronological presentation of the franchise transactions of the National Football League from 1920 until 1949. The study begins with the first league organizational meeting held on August 20, 1920 and ends at the January 21, 1949 league meeting. The purpose of the study is to present the date when each N.F.L. franchise was granted, the various transactions that took place during its membership years, and the date at which it was no longer considered a league member. The study is presented in a yearly format with three sections for each year. The sections are: the Franchise and Team lists section, the Transaction Date section, and the Transaction Notes section. The Franchise and Team lists section lists the franchises and teams that were at some point during that year operating as league members. A comparison of the two lists will show that not all N.F.L. franchises fielded N.F.L. teams at all times. The Transaction Dates section provides the appropriate date at which a franchise transaction took place. Only those transactions that can be date-verified will be listed in this section. An asterisk preceding a franchise name in the Franchise list refers the reader to the Transaction Dates section for the appropriate information. -
Nothing Minor About It the American Association/AFL of 1936-50
THE COFFIN CORNER: Vol. 12, No. 2 (1990) Nothing minor about it The American Association/AFL of 1936-50 By Bob Gill Try as I might, I can’t seem to mention the era before World War II without calling it “the heyday of pro football’s minor leagues.” But it’s not just an idle comment. In the 1930s several flourishing regional “circuits” of independent teams coalesced into outstanding minor leagues. From today’s perspective, one of the least likely locales for such a circuit was the New York-New Jersey area, where fans had the New York Giants and the Brooklyn Dodgers to satisfy their hunger for pro football. Despite that, the area produced the best of all the pre-war minor leagues: the American Association (soon to be immortalized in another best-selling PFRA publication). The AA was formed in June 1936, in response to a proposal by Edwin (Piggy) Simandl, manager of the Orange Tornadoes. Charter members were Brooklyn, Mt. Vernon, New Rochelle, Orange, Passaic, Paterson, Staten Island and White Plains. Several of these cities had been represented in two earlier leagues, the 1932 Eastern League and the 1933 Interstate League, both of which failed after a single season. However, those leagues didn’t have Joe Rosentover as president. Despite the early demise of his own Passaic club, Rosentover remained at the helm of the league for its whole existence. The AA’s first season was somewhat like that of its main rival, the Dixie League, which also opened for business in 1936. No team established any clear superiority, and at the end of November Rosentover announced a playoff series matching the top four teams, two each from what the newspapers sometimes called the New York group and the New Jersey group. -
The Staten Island Stapletons
THE COFFIN CORNER: Vol. 7, No. 6 (1985) THE STATEN ISLAND STAPLETONS By John Hogrogian Special thanks to N.F.L. Properties, Inc. for permission to publish this article. Trollies rolled down Broadway and Calvin Coolidge was president when the NFL came to New York City in 1925. In the years since Tim Mara founded the Giants, NFL teams have made their home in each of the City's five boroughs. The Giants played in the Polo Grounds in upper Manhattan through 1955, then moved to Yankee Stadium in the Bronx through 1973. The Brooklyn Dodgers football team thrived in Ebbets Field during the 1930s and 1940s. The Jets made their home in Shea Stadium in Queens from 1964 until recently. And, in the sleepiest of the boroughs, the Staten Island Stapletons played NFL ball from 1929 through 1932. The Stapes struggled through life on a shoestring, but helped keep the NFL afloat as it fought for life in the Depression. The Stapes started out in 1915, five years before the NFL was born in the midwest. Dan Blaine, a good halfback and a native of the working-class neighborhood known as Stapleton, along with three other players formed the team to play other semi-pro squads from New York and New Jersey. The Stapes played more for fun than money. Just as well: crowds were small; salaries averaged $10 per game. Nevertheless, they managed to do well, winning several local semi-pro titles before World War I. After military service, Blaine took over sole ownership in 1919. Blaine himself prospered in the 1920s. -
NFL 1926 in Theory & Practice
THE COFFIN CORNER: Vol. 24, No. 3 (2002) One division, no playoffs, no championship game. Was there ANY organization to pro football before 1933? Forget the official history for a moment, put on your leather thinking cap, and consider the possibilities of NFL 1926 in Theory and Practice By Mark L. Ford 1926 and 2001 The year 1926 makes an interesting study. For one thing, it was 75 years earlier than the just completed season. More importantly, 1926, like 2001, saw thirty-one pro football teams in competition. The NFL had a record 22 clubs, and Red Grange’s manager had organized the new 9 team American Football League. Besides the Chicago Bears, Green Bay Packers and New York Giants, and the Cardinals (who would not move from Chicago until 1959), there were other team names that would be familiar today – Buccaneers (Los Angeles), Lions (Brooklyn), Cowboys (Kansas City) and Panthers (Detroit). The AFL created rivals in major cities, with American League Yankees to match the National League Giants, a pre-NBA Chicago Bulls to match the Bears, Philadelphia Quakers against the Philly-suburb Frankford Yellowjackets, a Brooklyn rival formed around the two of the Four Horsemen turned pro, and another “Los Angeles” team. The official summary of 1926 might look chaotic and unorganized – 22 teams grouped in one division in a hodgepodge of large cities and small towns, and is summarized as “Frankford, Chicago Bears, Pottsville, Kansas City, Green Bay, Los Angeles, New York, Duluth, Buffalo, Chicago Cardinals, Providence, Detroit, Hartford, Brooklyn, Milwaukee, Akron, Dayton, Racine, Columbus, Canton, Hammond, Louisville”. -
Estimated Age Effects in Baseball
ESTIMATED AGE EFFECTS IN BASEBALL By Ray C. Fair October 2005 Revised March 2007 COWLES FOUNDATION DISCUSSION PAPER NO. 1536 COWLES FOUNDATION FOR RESEARCH IN ECONOMICS YALE UNIVERSITY Box 208281 New Haven, Connecticut 06520-8281 http://cowles.econ.yale.edu/ Estimated Age Effects in Baseball Ray C. Fair¤ Revised March 2007 Abstract Age effects in baseball are estimated in this paper using a nonlinear xed- effects regression. The sample consists of all players who have played 10 or more full-time years in the major leagues between 1921 and 2004. Quadratic improvement is assumed up to a peak-performance age, which is estimated, and then quadratic decline after that, where the two quadratics need not be the same. Each player has his own constant term. The results show that aging effects are larger for pitchers than for batters and larger for baseball than for track and eld, running, and swimming events and for chess. There is some evidence that decline rates in baseball have decreased slightly in the more recent period, but they are still generally larger than those for the other events. There are 18 batters out of the sample of 441 whose performances in the second half of their careers noticeably exceed what the model predicts they should have been. All but 3 of these players played from 1990 on. The estimates from the xed-effects regressions can also be used to rank players. This ranking differs from the ranking using lifetime averages because it adjusts for the different ages at which players played. It is in effect an age-adjusted ranking. -
Los Yankees De Nueva York Dieron Una Gran Muestra Ofensiva
1927 Los Yankees de Nueva York dieron una gran muestra ofensiva durante toda la temporada de 1927, y con su excelente pitcheo, dominaron la tabla de posiciones durante toda la campaña finalizando con una marca de 110-44 en ganados y perdidos, conformando así un equipo de los mejores en la historia del beisbol de las Grandes Ligas. Los Atléticos de Philadelphia, comandados por Ty Cobb, quedaron en segundo sitio de la Liga Americana a ¡19 juegos! del primer lugar. De nueva cuenta, el gran Babe Ruth exhibe su gran poder con el madero al llegar a la mágica cifra de 60 cuadrangulares, algo insólito en este deporte; su promedio con gente en base llegó a ser de 0.487. Su compañero Lou Gehrig no lo hizo tan mal, puesto que concluyó la campaña con 47 palos de vuelta entera. Es digno mencionar que entre Ruth y Gehrig conectaron casi la cuarta parte de los 439 cuadrangulares que se contabilizaron en la liga. Gehrig produjo 175 carreras siendo el líder en el circuito, aunque Ruth anotó más veces al pisar el plato en 164 ocasiones, 9 más que su compañero. El premio al jugador más valioso fue otorgado a Gehrig por encima de Harry Heilmann de Detroit, quien bateó para 0.398. Destacaron en la ofensiva neoyorquina Earle Combs con 137 carreras anotadas, primero en hits con 231 y en triples con 23 con 0.356 de promedio; Bob Meusel conectó para 0.337 con 47 dobletes y Mark Koening que fue segundo en carreras con 99 anotaciones. Tony Lazzeri fue tercero en jonrones con 18 acumulando un porcentaje de 0.309. -
The Rock Island Independents
THE COFFIN CORNER: Vol. 5, No. 3 (1983) THE ROCK ISLAND INDEPENDENTS By Bob Braunwart & Bob Carroll On an October Sunday afternoon in 1921, the Chicago Cardinals held a 7-0 lead after the first quarter at Normal Park on the strength of Paddy Driscoll's 75-year punt return for a touchdown and his subsequent extra point. If there was a downside for the 4,000 assembled Cardinal fans, it was the lackluster performance of the visitors from across state--The Rock Island Independents. But the Independents were not dead. As a matter of fact, their second quarter was to be quite exciting--and certainly one of the most important sessions in the life of their young halfback, Jim Conzelman. It would be nice if we only knew in what order the three crucial events of that second quarter occurred, but newspaper accounts are unclear and personal recollections are vague. Certain it is that the Islanders ruched the ball down the field to the Chicago five. At that point, Quarterback Sid Nichols lofted a short pass to Conzelman in the end zone. After Jim tied the score with a nice kick, the teams lined up to start all over. At the kickoff, Conzelman was down the field like a shot--the Cardinals were to insist he was offsides. Before any Chicagoan could lay hand on the ball, Jim grasped it and zipped unmolested across the goal line. Another kick brought the score to 14-7, as it was to remain through the second half. The third event of that fateful second quarter was the most unusual, but whether it happened before Conzelman's heroics to inspire him or after them to reward him is something we'll probably never know. -
OCTOBER 24, 2019 the Unsung Hero of the ’24 Senators Alexandria’S Sally Z
Alexandria Times Vol. 15, No. 43 Alexandria’s only independent hometown newspaper. OCTOBER 24, 2019 The unsung hero of the ’24 Senators Alexandria’s Sally Z. Harper remembers her baseball-playing father BY DENISE DUNBAR The Washington Nationals are vying for just the second World Series title in D.C. history. Fans eager- ly await the Nationals’ first home game of the 2019 fall classic Friday night as the team attempts to em- ulate the 1924 Washington Senators, winners over the New York Giants in seven thrilling games. Many fans know that aging Walter Johnson, one of the greatest pitchers in major league base- ball history, won game seven in relief after losing his two starts earlier in the ‘24 series. Others are familiar with Leon Allen “Goose” Goslin, the Sen- ators’ young slugging left fielder; 34-year-old Sam Rice, their stellar right fielder; and Bucky Harris, the young player-manager second baseman – all of whom were destined for the Baseball Hall of Fame. Fewer people recall the pitching hero of that series, an unassuming lefty from North Carolina MEMORABILIA FROM named Tom Zachary, who won both of his starts, TOM ZACHARY'S BASE- came within one out of tossing two complete games BALL CAREER, CLOCK- WISE FROM TOP LEFT: and pitched to a 2.04 run average against the Giants. HIS WATCH FOB FOR However, there’s one longtime Alexandria resi- WINNING THE 1924 WORLD SERIES, HIS dent who recalls Zachary quite well: Sally Z. Harp- 1933 BASEBALL CARD er. To her, Zachary was simply “Daddy.” AND A NEWSPAPER CLIPPING DESCRIBING HIS GAME 2 VICTORY SEE ZACHARY | 6 IN THE 1924 SERIES. -
How to Get from Dayton to Indianapolis by Way of Brooklyn, Boston, New York, Dallas, Hershey and Baltimore
THE COFFIN CORNER: Vol. 17, No. 5 (1995) HOW TO GET FROM DAYTON TO INDIANAPOLIS BY WAY OF BROOKLYN, BOSTON, NEW YORK, DALLAS, HERSHEY AND BALTIMORE By Bob Carroll Originally published in Ragtyme Sports Once upon a time -- well, in March of 1995, to be exact -- Ragtyme Sports published Rick Hines' story on Y.A. Tittle, one of my all-time favorite bald quarterbacks. Maybe I enjoyed reminiscing about Y.A. too much because I read right past an error in the article without noticing it, an error that has since given rise to a series of letter-to-the-editor corrections that may have simply confused the issue further. To remind everybody, what Rick wrote was "... the [Baltimore] Colts were one of four AAFC teams taken in by the NFL. The other teams from the defunct AAFC to merge with the NFL were the [Cleveland] Browns, New York Yankees and San Francisco 49ers." The question seems simple enough: which teams and how many of them from the old All-America Football Conference (1946-1949) were taken into the the National Football League in 1950? What Rick wrote was wrong. But also it was sort of right, as I will explain later. Eric Minde, a reader who knows his AAFC potatoes (as my sainted grandpa used to say}, jumped all over Rick. In Issue 4, Eric said: "... the article about Y.A. Tittle identifies the New York Yankees as an AAFC team that transferred to the NFL -- this is also wrong! The New York Yankees folded with the AAFC -- it was the Boston Yanks already in the NFL before the AAFC came into existence that became the New York Bulldogs, then later renamed the New York Yanks." This is right as far as it goes.