Saturday, September 14, 2024

Two sports economics items: Shohei Ohtani impact on tourism & the pay of NFL running backs

See The Dodgers’ Shohei Ohtani Drives In Runs—and Drives Up Tourism: Whether they’re traveling from inside California or from Japan, fans of the MLB superstar are spending big by Dawn Gilbertson of The WSJ. Excerpts:

"Several Japanese tour operators have sold packages featuring Dodgers games. With the Dodgers in first place in their division, those operators are preparing playoff getaways. The 453-room Omni Los Angeles at California Plaza, a few miles from the stadium, has seen bookings from Japanese visitors jump 30% this summer from Expedia alone. And tourists go out of their way to snap photos in front of splashy new Ohtani murals at downtown’s Grand Central Market, the Miyako Hotel in Little Tokyo and a liquor store in Hermosa Beach.

The Dodgers are easily the biggest MLB draw in rival ballparks, averaging 36,077 fans through 68 road games. That average is up nearly 12% from 2023. In road attendance, the Angels have fallen from fifth in Ohtani’s final year with the club—to dead last this season.

Nowhere is the obsession more apparent than Dodger Stadium. Wednesday was Ohtani Bobblehead Night. Not just any bobblehead: This collectible featured Ohtani and his dog, Decoy (Japanese name Dekopin). Adding to the frenzy: A fraction of the bobbleheads were golden, giving the whole place a Willy Wonka feel when the gates opened."

"I found golden bobbleheads from the game listing for up to $17,000 on eBay." [author Dawn Gilbertson said]

Ohtani's impact seems large. But there are offsetting effects. People who come from Japan to see him play increase spending in the USA but then they spend less in Japan. Same for those road games. People are spending more where the Dodgers go but then there is less spending where the Angels play (and those people spending more to see the Dodgers on the road are then spending less on other things in their cities).

Next is The Economics of Running Backs: They used to be highly paid stars. Why do they now make so much less than quarterbacks? by Harvard economics professor Roland Fryer. Excerpts:

"In two of the past three years, a running back hasn’t been selected in the first round. Before that, at least one was chosen in the first round in 38 of the previous 40 years."

"running backs now have shorter careers, reduced salaries and lower draft priorities."

"pay for running backs and fullbacks since 2011 has increased only 11%. For every other offensive position, total pay has increased at least 90%."

Factors from the supply side: 

"Though the number of running backs in the NFL Combine increased between 2003 and 2015, it has declined sharply since. The players’ running speed, strength and explosiveness are essentially unchanged, too, though they have lower average body weights." 

Factors from the demand side:

"an employee’s wage is tied to his marginal productivity—which, in this case, is related to his contribution to victory."

" It’s been more than 20 years since a team won a Super Bowl with an average quarterback and a dominant defense (Brad Johnson and the Tampa Bay Buccaneers in 2003). Several recent Super Bowl champions have had nondominant running backs."

"average passing yards per game have risen around 40% in the past 50 years. Average rushing yards over the same period have fallen. Quarterbacks have become more physically impressive, faster and more explosive. They also have larger hands and increased throwing velocity compared with many of their predecessors."

[there is] "an increasing correlation between passing efficiency and game outcomes. Meantime, the correlation between rushing yards and winning has weakened."

"The NFL is interested in increasing revenue, which depends on viewership. That’s music to my economist ears—and it makes sense. Fans like to watch games with a lot of scoring, and points are earned more efficiently via passing plays. The correlation between annual passing yards and annual revenue is approximately 0.7. The correlation for rushing yards is negative 0.01."

"Passing more freely allows a team to better discern the defense’s schemes and score more effectively."

"The NFL, for its part, has adopted changes that encourage this shift, such as softening what constitutes defensive pass interference and imposing more-protective rules to safeguard quarterbacks."

Related posts:

Would you pay $24 million for a great conversation starter? (2024) (A jersey worn by Babe Ruth sold for $24.12 million) 

What Economists Say About "March Madness"  (2009)

March Madness Is a Moneymaker. Most Schools Still Operate in Red.  (2021)

The economic impact of the Super Bowl is met with skepticism from economists (2024)

Does It Pay to Host the Olympics? (2009)

Economic benefits from mega-events like the Olympics are often overstated (2021)

Striking out: estimating the economic impact of baseball's World Series (2021) 

Some Olympic medal winners get alot of extras (2024)

How Much Is The Average MLB salary? (2021)

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