Professional Sports Organizations and Business Analytics: Monopoly Power vs Debt Financing

Abstract

In this essay, we consider the factors that explain the reticence of PSOs to be early adopters of analytics. We examine the relatively privileged position that professional sports franchises at the highest echelon in the U.S. and Canada enjoy and compare it the industry dynamics firms face in competitive environments. We remark upon the expansion of the league via debt financing, and why that promotes increased use of analytics. We also offer several propositions about the growth of analytics, and we conclude with some thoughts about what the future may hold for PSOs and analytics.