Tuesday, October 18, 2016

Study Shows Fan Intensity Is Best Predictor Of Revenue

A study by Eli Ben-Porat of HardballTimes.com takes a look at a range of factors that could predict revenue for MLB teams. Statistical indicators like Census Metropolitan Areas, state size, and fan engagement (via social media) are all put into a regression model 'blender' to see what comes out. Not surprisingly, it appears that fan intensity (Facebook, TWITTER  interactions) is the best predictor of increased revenue—no matter whether the team is in a "small market" or a "big market". As Red Sox fans, we sort of get this intuitively—as John Henry and the boys pull in a ridiculous amount of revenue (upwards of $400 million a year) from a relatively "small" market. Anyway, it's an interesting article from a guy who works for the Rogers Empire in Toronto. Pity him, his guys are on the way out soon.