The Effect of Professional Sports on Earnings and Employment In the Retail and Services Sector of US Cities (original) (raw)
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A Note on the Local Economic Impact of Sports Expenditures
Journal of Sports Economics, 2002
Public subsidies for sports stadiums and arenas are often justified as a means to boost the local economy. The argument relies on historical local economic impact multipliers that misrepresent the effect of consumer expenditures on professional sports. Sports expenditures are subject to extraordinary consumer substitution away from other local expenditures, and they suffer unusually large first round leakages from the local economy because, inter alia, players export their earnings to the locale of their permanent residence. This note illustrates the extent of such leakages using information about the permanent residence of players in the National Basketball Association. While 93% of average employees live in the area where they work, only 29% of NBA players do the same. The illustration shows that a standard local economic impact multiplier exaggerates the stimulative effect of sports expenditures by over 400%.
An Event Study of the Economic Impact of Professional Sport Franchises on Local U.S. Economies
Journal of Sports Economics, 2007
It is common for a city to use expensive incentives such as a state-of-the-art stadium or tax exemptions to induce a major professional sport team to relocate to or remain in its area. A city does so because it expects a professional sport team to enhance the local economy. In this article, the authors use an event study approach to evaluate the advisability of this strategy. Their results suggest that major league sports franchises from the four major U.S. team sports (baseball, football, basketball, and hockey) have an adverse impact on local per capita income for U.S. markets in both the short and long run.
The Review: A Journal of Undergraduate Student Research, 2007
In lieu of an abstract, below is the first paragraph of the paper. Imagine being a tax payer whose hard earned tax dollars are supporting the construction of a multimillion dollar sports facility, under the impression that these dollars will supposedly benefit the local economy. Then, after a few years of the team's presence in the community, there is no major capital return after being told numerous times by local officials that there would be. On top of seeing no economic increase, all the employment opportunity that was also promised only appears to be minimal. Although the introduction of a sports team in your community may seem like a good idea, many studies have proven otherwise. Sports franchises are not always economically beneficial to a community. This article is available in The Review: A Journal of Undergraduate Student Research: http://fisherpub.sjfc.edu/ur/vol9/iss1/6 The Economic Impact of Sport Jake Conway, Christine Isselhard, Emily Urbanski Imagine being a tax ...
Growth Effects of Sports Franchises, Stadiums, and Arenas: 15 Years Later
Social Science Research Network, 2018
A 1999 study by Dennis Coates and Brad R. Humphreys found the presence of major sports franchises to have no significant impact on the growth rate of per capita personal income and to be negatively correlated with the level of per capita personal income for a sample of all cities that had been home to at least one franchise in any of three professional sports-baseball, basketball, and football-at some time between 1969 and 1994. This paper returns to the questions Coates and Humphreys asked using an additional 17 years of data and a number of new stadiums, arenas, and franchises. The data cover 1969-2011 and add hockey and soccer franchises to the mix while also including all standard metropolitan statistical areas rather than just those that housed franchises in the major professional leagues. The analysis also adds two new dependent variables: wage and salary disbursements and wages per job. The results here are generally similar to those of Coates and Humphreys; the array of sports variables, including presence of franchises, arrival and departure of clubs in a metropolitan area, and stadium and arena construction, is statistically significant. However, individual coefficients frequently indicate harmful effects of sports on per capita income, wage and salary disbursements, and wages per job.
Down, set, hike: The economic impact of college football games on local economies
Working Papers, 2007
This paper provides an empirical examination of the economic impact of spectator sports on local economies. Confirming the results of other ex post analyses of sports in general, this paper finds no statistically significant evidence that college football games in particular contribute positively to a host's economy. Our analysis from 1970-2004 of 63 metropolitan areas that play host to big-time college football programs finds that neither the number of home games played, the winning percentage of the local team, nor winning a national championship has a discernable impact on either employment or personal income in the cities where the teams play. While successful college football teams may bring fame to their alma mater, fortune appears to be a bit more elusive. JEL Classification Codes: L83
1 Down, Set, Hike: The Economic Impact of College Football Games on Local Economies
2007
This paper provides an empirical examination of the economic impact of spectator sports on local economies. Confirming the results of other ex post analyses of sports in general, this paper finds no statistically significant evidence that college football games in particular contribute positively to a host's economy. Our analysis from 1970-2004 of 63 metropolitan areas that play host to big-time college football programs finds that neither the number of home games played, the winning percentage of the local team, nor winning a national championship has a discernable impact on either employment or personal income in the cities where the teams play. While successful college football teams may bring fame to their alma mater, fortune appears to be a bit more elusive.