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    The Effect of Diversity on Revenue in Major League Baseball

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    SmythEffectSS20222.pdf (598.5Kb)
    Author
    Smyth, Alexandra; Adams, Caroline; Butler, Mary
    Date
    2022-04-22
    Type
    Presentation
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    URI
    https://dspace.sewanee.edu/handle/11005/21835
    Subject
    Scholarship Sewanee 2022; University of the South; Diversity; revenue; sports; Major League Baseball
    Abstract
    Major League Baseball’s popularity is decreasing and as such, the league seeks to diversify and increase viewership, especially among younger generations. There is not significant literature that measures the relationship between roster diversity and revenue. Therefore, our paper estimates the effect of a team’s diversity on their revenue. We estimate three Ordinary Least Squares equations for the 2005 Major League Baseball Season using data from Statista and Baseball Reference. We measure diversity as the share of players on the roster that are born in Asia, Latin America, and other (outside of the United States) countries. After controlling for city-level characteristics, we find no statistically significant effect of diversity on revenue.
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