Abstract
Previous research on competitive balance has examined the impact of league balance on local demand. Instead we examine how the competitiveness of the local team impacts consumer interest in other league games. Our modeling shows an 8.93 percent increase in NFL playoff television ratings for out-of-market games when the local team is actively competing in the same playoff tournament. Additionally, we find a 4.94 percent ratings premium when the out-of-market game features teams from the same conference as the local team and the local team is still active. We conclude that local team success is indeed related to increased interest in out-of-market games.
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