Profitability Of Nhl

The world of sport enterprise is filled with obligations. One of the most important obligations to a professional sport team is achieving profit. There are many ways a professional sports team determines their profitability. The study done in this specific article relates profitability and other factors in reference to the National Hockey League (NHL).

In the introduction, the author presents an overview of the different professional sport teams and their franchises. Information regarding the competitive environment that has grown immensely in the past few decades is provided. Professional sport teams have become very competitive and so owners are trying to establish different ways maximize profitability into their teams. The author states that while research has been done, this specific study is a new and unexplored way of developing a model for all professional sport teams to follow in order to maximize profitability. The author attempts to look at the professional sport industry as a whole rather than compared to an individual team or athlete.

In this particular study, the author wishes to consider the professional sport leagues with a market value of more than $100 million. By narrowing this down, the author is left with only four choices: National Basketball Association, the National Hockey League, the National Football League, and Major League Baseball. The NHL was chosen based on a few different factors. The NHL does not require revenue sharing, nor is there any salary cap. Also, the revenue produced from the television and media are rarely shared. The author hopes to achieve a fluid concept for all professional sport leagues by concentrating on the NHL.

Since the NHL consists of only thirty teams, the sample size of one season would not be sufficient. Therefore, a sample of 90 cases was used in this study by combining three seasons. Since there are so many different factors that can lead to