Where to Go Next? Examining the Effect of Franchise Expansion and Location on Game-Level Attendance in Major League Soccer

Abstract

Using a large dataset with over 4,000 game-level observations from Major League Soccer over the period 2006 to 2019 we investigate the determinants of attendance demand. Focusing on franchise expansion and location effects, we find that some decisions made by the organization had positive impacts on league revenues. While going to cities with a large population and already hosting nearby NFL or NBA teams is positively associated with game attendance, the presence of geographically close MLB and NHL teams is detrimental to MLS revenues. Our results suggest a need for a more nuanced and selective approach to MLS expansion policy.

Franchising: Is The North American Model About to Be Duplicated in European Soccer?

“…In North America, by contrast, only economically more profitable metropolises justify the presence of at least one team from one of the four major leagues: the National Basketball Association (NBA), the National Football League (NFL), the National Hockey League (NHL), and the Major League Baseball (MLB). Of course, for giant metropolises such as New York or Los Angeles, several different sports teams can coexist, given the size of the population and economic activity (Semmelroth et al, 2022).…”