UBCO study finds when it comes to the NHL, homegrown talent means more money

Homegrown talent valuable

Photo: UBCO

A unique University of British Columbia Okanagan study examined the benefits of having homegrown players on NHL teams.

Turns out everyone loves a hometown hero and having homegrown players on NHL teams is not only good for the fanbase, it’s also good for the owner's pocketbook.

According to the research, every locally born player who plays a full NHL season increases home game attendance by about 12,000 spectators and boosts team revenue by about US$4.8 million annually.

“This study addresses a critical gap in the literature on fan demand for professional sports. By analyzing both attendance and revenue data, this paper is the first to quantify the relationship between local players and fan demand in professional hockey,” says co-author Édouard Perron.

Perron worked with UBCO’s Dr. Min Hu, an assistant professor in economics, on the study which was recently published in the Journal of Sports Economics.

The study covers 14 NHL seasons from 2005 to 2018, focusing on the post-lockout salary cap era and concluding before the COVID-19 pandemic.

The researchers define a local player as one born in the same state or province as the team they play for, or born within 100 kilometres of the arena where the team plays.

Unlike other professional sports leagues that depend primarily on national revenue streams including TV or media deals, NHL teams rely more heavily on local revenue sources like tickets, parking and concessions.

“Where a player is born plays a more central role in fan identity and marketing due to the league's geographically diverse player development pathways, which differ significantly from those of the NBA or NFL,” said Perron.

“Locally born players are prominently featured in promotional materials, serving as relatable figures who enhance fan loyalty and foster community pride.”

The value of hometown players is comparable across the NHL’s diverse geographic contexts, including comparisons between the Original Six teams, primarily located in the northern region, and non-traditional teams in the southern region.

“The results underscore the strategic value of investing in and promoting local talent, particularly for teams struggling with comparatively low attendance,” said Dr. Hu. “It’s clear that homegrown players strengthen fan engagement by fostering stronger regional connections, acting as both cultural ambassadors and economic drivers.”