Assessing the relative efficiency of sports organizations: a case study of the Korean professional teams

The Korean professional sports industry is experiencing immense competitive pressure. Thus, it is imperative for sports organization in Korea to improve the cost efficiency and organizational efficiency in order to gain a competitive edge. The purpose of this study is to assess the relative efficiency of the sports organizations' performance. To do this end, we use the data gathered from the Korean baseball organization (KBO) and Korean Basketball League (KBL). This study proposes full results of DEA analysis such as efficiency score, slacks in inputs and outputs of inefficient organizations, window analysis. We also analyze the productivity changes of the organizations over time using the Malmquist Index method. Malmquist Index is used to separate the changes over time in the efficiency of each organization individually, from the shift of the best practice frontier over time typically due to changes in technology.