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Personal Seat Licenses : Who ’ s Winning this Round of the Stadium Financing Game ? by
| Content Provider | Semantic Scholar |
|---|---|
| Author | Chao, E. |
| Copyright Year | 2018 |
| Abstract | This thesis examines whether sports teams or fans are benefitting from the rise of personal seat license (PSL) programs in the National Football League. Using data collected from STR Marketplace, a secondary market and online brokerage for PSLs, we conducted two analyses. We first calculated the return on investment for seat licenses to determine the role of PSLs as profitable alternative financial assets. Then, we modeled an investor’s excess return relative to returns on the traditional equity market to determine the efficiency of PSLs as an inexpensive means of financing for teams. We came to two corresponding conclusions: 1) PSLs are usually profitable investments and 2) sports franchises bear a higher cost of capital to issue seat licenses relative to their estimated cost of equity had they sold ownership rights on the equity market instead. Since PSLs are apparently a relatively expensive means of financing for teams, we ultimately crown licensees as the winners of this round of the stadium financing game. Personal Seat Licenses 5 |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | http://www.stern.nyu.edu/sites/default/files/assets/documents/Esther%20Chao_Thesis_NYUNY%20Honors%202018.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
