Professional Sports Teams as Advertisements: The Case of Nippon Professional Baseball

Michael Leeds and Sumi Sakata ()

A chapter in The Sports Business in The Pacific Rim, 2015, pp 161-173 from Springer

Abstract: Abstract Many firms advertise by sponsoring sports activities. Team names, however, remain off-limits in the major North American sports. While teams serve owners’ outside interests, they are not a part of that outside interest. In contrast, most Nippon Professional Baseball (NPB) teams are subsidiaries of larger corporations that treat them as a form of advertising. We study whether owning a sports team is a profitable investment for a Japanese corporation by evaluating the impact of the purchase and sale of NPB teams on the profits of their parent companies. To do so, we perform an event analysis using stock-market data for the five NPB teams that changed hands after the 2004 season. Our findings show that the purchase or sale of an NPB franchise has little long-run effect on the profits of the parent companies.

Keywords: Abnormal Return; Parent Company; Event Window; Cumulative Abnormal Return; National Football League (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:spr:semchp:978-3-319-10037-1_9

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DOI: 10.1007/978-3-319-10037-1_9

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