Profitability in professional sports and benchmarking: the case of NBA franchises

Abstract

Purpose

The aim of this study is to demonstrate suitability of the continuous improvement framework and use of benchmarking method in the context of sports.

Design/methodology/approach

This study uses non‐financial performance measures that are indicative of performance and are closely related to the desired outcomes. Use of such measures seems necessary in the sports and appropriate in relation to professional sports organizations' recruiting, attendance, and profit maximizing objectives. Analyses of this study are based on data of National Basketball Association (NBA) games over three basketball seasons.

Findings

The results indicated significant correlation between attendance and winning percentages. Furthermore, the results suggest that a team can improve its winning percentages by changes in the roster that help it emulate superior teams. Comparing teams that advanced in a given season and reach the playoffs with those that did not, revealed the more important skill factors for success in the NBA. The results also indicated that some players' skills might be more critical for a given team in reaching the playoffs.

Research limitations/implications

The results presented in this paper are influenced by the NBA's basketball rules. Because basketball rules are not the same for all leagues and such rules change over time, the findings are time‐specific and should be considered in that light. Additionally, the research design used in this study must be modified for other professional sports.

Originality/value

This paper provides an example for application of continuous improvement framework to professional sports.

Citation

Nourayi, M.M. (2006), "Profitability in professional sports and benchmarking: the case of NBA franchises", Benchmarking: An International Journal, Vol. 13 No. 3, pp. 252-271. https://doi.org/10.1108/14635770610668776