Tag: NFL

This blog post was originally published on Forbes.com
Patrick Riche is Director of the Business of Sports Program at Olin.

“As a Microeconomics professor, one of the topics covered is a discussion of the “utility” (or satisfaction) which consumers derive from their various purchasing decisions.

Invariably, one of the universal truths in the study of economics is the law of  Simply defined, this law suggests that the additional satisfaction we obtain from consuming the next unit of some good or service (i.e. marginal utility) will eventually decline as we consume more and more of the same good/service.

…Going back to late October, Sports Illustrated reported that Monday Night Football was down 24% from 2015, Sunday Night Football was down 19% and Thursday night was down 18%.

But to this economist, there is no question that diminishing marginal utility has to play a significant role as well.With games on Thursday, Sunday, and Monday night, and with games all day Sunday, is it possible that we’ve reached a tipping point in just how much NFL football we can consume?”

Link to article: 2016 NFL TV Ratings Decline: Has Diminishing Marginal Utility Finally Set In?

CNBC turned to Olin’s Patrick Rishe this morning for his take on two big sports stories in the news. Rishe, Director of the Business of Sports Program at Olin, says Twitter’s deal with the NFL to live stream games is a good play to attract a younger audience.

As for the Atlantic Coast Conference’s (ACC) announcement Wednesday to relocate all neutral-site championships from North Carolina just two days after the NCAA announced it will pull all 2017 championships from the state to protest the HB2 “bathroom” law, Rishe predicted the state will lose $125 million – $175 million in 2017 due to lost sports-tourism spending.

In July, the NBA announced its decision to relocate its 2017 All Star Game from Charlotte due to the law that bars transgender people from using government building restrooms in accordance with their gender identities.

In his column on Forbes.com, Rishe identifies four areas the state will likely lose out based on the NBA and NCAA’s decisions to pull out of the state:

• Loss of new spending by non-North Carolina residents (coming to the state for sports events)
• Leakage of spending by North Carolina residents (going to other states to see sports events)
• Loss of new spending by non-local organizations (event-related expenditures)
• Loss of local spending through the multiplier effect (money injected into the NC economy gets spent at local businesses who then spend money at other local businesses)

Link to CNBC video.

The NFL’s decision to move the St. Louis Rams football franchise to Los Angeles has more to do with money than sports, so it’s no surprise that the media has been turning to Olin experts for their views on the news.

Patrick Rishe, director of Olin’s Business of Sports Program has been making the rounds on local radio, TV, and national outlets including  this report on CNBC’s Squawk on the Street and this interivew with CNN Money.

Dan Elfenbein, strategy professor, told St. Louis Public Radio that the loss of the Rams could allow the city to focus attention and investment on more pressing needs like improving public schools. Listen to or read the report, “For some, the NFL’s departure from St. Louis is a ‘gut punch.'”

Members of the Olin Sports Management Association (OSMA) meet with St. Louis Rams’ front office staff prior to the Rams vs. 49ers game at the Edward Jones Dome on Sunday, November 1, 2015.

The group was introduced to internship and other opportunities in sports from marketing to management roles.  At the conclusion of the presentation, the group experienced the Media Podium where pre- and post-game interviews are conducted as well as on-field experience before kickoff.

The group watched a charged-up Rams team play excellent defense to hold the 49ers to only 6 points, as St. Louis won the game 27-6.

Sports Illustrated talked to Olin professor Glenn MacDonald about the possibility that the Rams football franchise might leave St. Louis.

“MacDonald says that the future of St. Louis without the Rams looks similar to the city’s future with the Rams, and as far as cities’ economies go, professional sports teams don’t have much of an impact. Plus, he says, among the ranks of NFL teams, the Rams likely fall near the bottom of the heap in terms of bringing dollars to their city.”
Link to article.