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Journal of Sports Economics
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When Is the Honeymoon Over? National Basketball Association Attendance 1971-2000

John C. Leadley

Western Oregon University

Zenon X. Zygmont

Western Oregon University

This article uses a Tobit analysis to test for the presence of a honeymoon effect for National Basketball Association (NBA) arenas using a pooled cross-section time series sample from 1971 to 2000. No previous NBA attendance-demand or attendance-related study tested for such an effect. The honeymoon effect increases attendance demand 15% to 20% in the first 4 years of the operation of a new arena, an increase that is similar in magnitude to recently constructed Major League Baseball stadiums. The effect is nonlinear and diminishes relatively quickly with the steady state established after Year 10. Because many NBA arenas are subsidized, the effect has public policy implications if revenue projections for a new arena ignore or overestimate the effect.

Key Words: honeymoon effect • basketball • attendance

Journal of Sports Economics, Vol. 6, No. 2, 203-221 (2005)
DOI: 10.1177/1527002504263399
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[Abstract] [PDF]