The Paradox of Fan Loyalty

This paper explores the loyalty of sports fans and the associated impact of team loyalty on team quality. Since disloyal fans are often maligned even though they help team quality, this is evidence that fans care about characteristics of the team apart from team quality. Therefore, an identity framework is used to show preferences of different subsets of fans. The model allows for heterogeneity in the loyalty of fans and argues that fan loyalty increases profits but lowers team quality and player salaries. While disloyal fans may increase team quality, they may hurt the team’s identity. Strategies for teams under this model are briefly discussed. The author would also like to thank Charles Brown, Brian Mills, and Steven Salaga for helpful suggestions.