Graduation Year


Date of Submission


Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts

Reader 1

Ricardo Fernholz

Rights Information

2023 Matthew V San Luis


This study attempts to discover the impact that macroeconomic factors in a sports franchise’s local economy have on sports franchise valuations. The leagues involved in this study are the National Basketball Association (NBA) and the National Football League (NFL) from 2014-2019. This study uses a fixed effect panel data model along with individual year OLS regressions to yield its results. The results show that household median income and population are significantly positively correlated with sports franchise valuations and that unemployment rate is negatively correlated with sports franchise valuations but to a lesser extent of significance. The results also show that certain sports franchises in both leagues have valuations that are driven more by economically unobservable factors when compared to the other franchises in their respective leagues. In other words, some franchises are inherently more valuable than others for reasons explained by economically unobservable factors, such as brand value or historical significance. These findings can help owners or prospective owners of sports franchises make decisions, as well as policymakers in local government during negotiations.

This thesis is restricted to the Claremont Colleges current faculty, students, and staff.