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Document Type

Article

Abstract

In 2007 the National Basketball Association (NBA) endured one of the biggest scandals in the history of professional sports. Tim Donaghy, a referee in the National Basketball Association, pleaded guilty to providing inside information on NBA games to gamblers and receiving money from their winning bets. Through econometric analysis, this paper investigates if the Tim Donaghy gambling scandal of 2007 had an effect on the revenues of NBA franchises. All the statistics and data used in this paper are from the 2002-2003 through the 2011-2012 NBA regular seasons, a total of ten seasons. This paper finds that there is strong evidence to suggest that NBA franchise revenues were positively affected by the Tim Donaghy scandal. Possible reasons for this include a “Restored Confidence” effect and a “Moral Value Exemption” effect.

Publication Date

Spring 2014

Journal Title

Major Themes in Economics

Volume

16

Issue

1

First Page

51

Last Page

64

Copyright

©2014 by Major Themes in Economics

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Language

EN

File Format

application/pdf

Included in

Economics Commons

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