Steven Salaga

We investigate the joint impact of managers at different hierarchical levels on firm performance in Major League Baseball. We separately quantify the contribution of upper and middle managers and the impact of their match quality—the degree to which managers cooperate effectively across layers to impact firm success. We establish that match quality is a statistically significant and economically meaningful driver of firm performance. Higher-quality managers tend to be matched together across levels and achieve higher match quality during their joint employment. Match quality does not improve over the length of a joint employment spell, but lower match quality is found in pairs with more divergent educational attainment and prior strategic approaches. Hence, match quality is partly innate, and manager pairings may have difficulty improving their cooperation through learning. When we control for match quality, we find significantly lower estimates of heterogeneity in manager ability compared with commonly used estimators of managerial impact. Still, both middle and upper managers retain a meaningful impact on firm performance.

Speculation has long proposed that interest in live sports programming has been fueled by the gambling market. We separate interest in outcome uncertainty from interest in the betting market and uncover that consumers are sensitive to contest outcomes relative to both the sides and totals markets.

We test the integration of repeated decision making of influential agents in asset prices. Our approach exploits a natural experiment in the Major League Baseball (MLB) betting market, where umpire assignments are revealed only for certain games, using over 2.5 million decisions made by these officials. Estimations reveal only partial adjustment to information related to umpire behavioral heterogeneity. We show this is exploitable by informed bettors, providing advantages over more salient, lower quality information. These results suggest that underlying information on influential individual decision making can serve as a high quality indicator of asset values due to persistence across time.

This study examines revenue sharing in sports leagues where franchises engage in multiple types of investments. Previous literature typically treats revenues and investments as homogeneous, but we add to the literature by differentiating between investment types and revenue sources. This is important because investment in talent leads to winning, which is a zero-sum game for the league and therefore owners have an incentive to limit talent investment. However, other investments, such as stadiums, are not a zero-sum game, and therefore the implications of revenue sharing are different for the league. We provide sufficient conditions under which it is more efficient to share media revenue compared to stadium revenue. We conclude by providing applications of this model.

The authors demonstrate that betting market outcomes are a statistically significant and economically relevant driver of local market television viewership in the National Basketball Association. Ratings are higher when the local market team covers the point spread and when point spread outcome uncertainty is increased. They further illustrate that point spread market outcomes have a larger relative impact on viewership in less-popular games and when the local market team is expected to perform poorly. This suggests wagering market access serves as insurance to the league and its franchises against reduced viewership in games that are less appealing to consumers. The results assess the degree to which wagering interest has driven past revenues as well as how the legalization of sports wagering may influence future revenues.

The authors estimate the determinants of college football television viewership across the full quality spectrum of contests and test whether consumer preferences vary based on changes in the attributes of the core product. They utilize national television viewership data at the individual game level over a three season period and estimate numerous consumer demand models using zero-truncated negative binomial regression. The results indicate a lack of support for anticipated outcome uncertainty, but support for contests where actual outcomes are closer than market expectations. Consumer preferences are not consistent across game qualities, which may indicate that game type is linked to variation in the consumer base and reference-dependent preferences. The findings may also explain why the uncertainty of outcome hypothesis is supported in some contexts, but not others. Preference for absolute quality also dominates preference for relative quality. This finding has important implications for contest scheduling. Given the common practice of advance scheduling creates sub-optimal conference and network television schedules, stakeholders could be leaving television revenues on the table.

This study utilizes Nielsen ratings to estimate the factors that influence viewership for Bowl Championship Series telecasts. Our modeling demonstrates increased start-of-game ratings for contests of higher absolute quality, but not of anticipated higher relative quality. Little support is generated for the notion of consumer preference for scoring. However, the relationship between outcome uncertainty and television ratings is dynamic as consumers initially prefer more certain games, but ratings increase systematically throughout a contest when the outcome of that contest becomes more uncertain. Preferences also exist for games in which actual outcomes match pregame expectations.

The authors tested for evidence of racial discrimination in the employment retention of National Football League head coaches. A robust data set spanning the modern history of the sport (1985–2018) was generated to examine managerial employment tenure, dismissal, and subsequent organizational performance. After controlling for performance differences and heterogeneity between head coaches, the authors uncover statistically significant evidence that Non-White head coaches experience longer employment spells relative to White head coaches in the Rooney Rule era. No statistically significant evidence of racial differences in the rate at which head coaches are fired is found. Both employment tenure and dismissal are largely driven by raw performance, and to a lesser degree, relative performance. Finally, the relationship between head coach race and organizational performance is examined, but no statistically significant differences by race are uncovered.

The scholarship on the economics of individual sports is scant relative to that of team sports. This study advances sport management scholarship, particularly sport economics, by using consumer-theory modeling to estimate Ultimate Fighting Championship (UFC) pay-per-view purchases. Our generalized linear models show fan preferences for certain weight classes, star fighters, outcome uncertainty and co-main event quality factors as well as scheduling preferences for holiday weekends. The popular notion that The Ultimate Fighter reality series served as the impetus for the UFC’s growth is supported in part. The study concludes by showing how the modeling results impact firm revenue generation via fight card characteristics.