Article

Location, Location, Location?

Karl W. Einolf

in The Oxford Handbook of Sports Economics

Published in print May 2012 | ISBN: 9780195387780
Published online September 2012 | | DOI: http://dx.doi.org/10.1093/oxfordhb/9780195387780.013.0015

Series: Oxford Handbooks

 Location, Location, Location?

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This article explores the location of franchises in sports leagues. It specifically examines the location of franchises within the four major sports leagues in the continental United States: Major League Baseball (MLB), the National Football League (NFL), the National Hockey League (NHL), and the National Basketball Association (NBA). Moreover, a facility location model is used to investigate the optimal placement of sports franchises in a league and to identify the best expansion prospects for a sports league. It is shown that the p-median model's optimal solution is less likely to be the best option for an organization if its facilities are less dependent on the income available at a node on the network. It is noted that the four major sports leagues in the continental United States do not all locate franchises optimally, according to the model.

Keywords: Major League Baseball; National Football League; National Hockey League; National Basketball Association; sports franchises; facility location model; continental United States

Article.  5982 words. 

Subjects: Economics ; Industry Studies ; Financial Institutions and Services

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