Public Goods

When analyzing a sports team, while in a business mind frame, there is one thing to know – sports entertainment is a public good. There are many kinds of goods, there is personal property, a classification where the property of a person is part of the person them self whereby the owner has the rights to exclude others from its use, and dispose as he/she pleases. There is private property which follows a similar rule, save disposal. Lastly there are public goods. Goods which are non-exclusive and non-rivalrous, effectively meaning that any and everyone can enjoy it’s use. Public goods are extremely important to know about when measuring the value of a sports team. Often times it is said that for sporting organizations the costs outweigh the benefits. However in saying this critics most often refer only to economic activity benefits. An approach called the Contingent Valuation Method measures intangibles, and environmental ammenities such as civic pride, and community spirit. 

A team of researches sent out questionnaires to 1,200 residents of Jacksonville, Florida, home of the Jacksonville Jaguars asking questions about the way they felt about the team. What they found was that only 38% of the questionnaires were returned. They held answers to questions like “do you feel a personal victory when Jacksonville wins?” and “Do you enjoy watching the game when Jacksonville loses?” and other questions similar in nature.

Later in the survey they ask the amounts that these residents are willing to pay, in taxes to aid the football and basketball teams of their city. The results are in the graph below. 

<a href=’http://chartgizmo.com/ChartPage?id=44643&#8242; target=’_blank’>Chart page</a>

What this information, though very basic, is used for is for sporting organizations to present to local governments and other businesses in an effort to promote the need of an official sports team. The common misconception is that all of this data centers around monetary value. The responses that researches came up with showed that most people get genuine enjoyment and satisfaction from a sporting team despite wins and losses and are willing to pay a little extra money to keep the sports around. 

Knowing this, there is pressure on sporting organizations to provide comfortable situations for fans to enjoy, and keep a winning organization. The pressure also involves maintaining a reputable brand. An example is the Yankees for their winning reputation.

Sports involves many different layers of analysis, including measuring intangible assets. All of these measurements are used to  advocate sports benefits. 

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