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Novelty Effects Of New Facilities On Attendance At Professional Sporting Events

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  • DENNIS COATES
  • BRAD R. HUMPHREYS

Abstract

We investigate the effect of new facilities on attendance in professional baseball, basketball, and football from 1969 to 2001. We find a strong, persistent effect in baseball and basketball, and little effect in football. Size and duration estimates imply that baseball teams sell 2,500,794 additional tickets over the first eight seasons, basketball teams 293,878 over the first nine seasons, and football teams 137,792 over the first five seasons, implying an increase in revenues that could defray public subsidies that state and local governments provide for new sports construction projects. Rough calculations suggest that stadium subsidies are an inefficient method of subsidizing professional sports franchises. (JEL "R39", "D12", "L83") Copyright 2005 Western Economic Association International.

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Bibliographic Info

Article provided by Western Economic Association International in its journal Contemporary Economic Policy.

Volume (Year): 23 (2005)
Issue (Month): 3 (07)
Pages: 436-455

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Handle: RePEc:bla:coecpo:v:23:y:2005:i:3:p:436-455

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References

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  1. Dennis Coates & Brad R. Humphreys, 1999. "The growth effects of sport franchises, stadia, and arenas," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 18(4), pages 601-624.
  2. Dennis Coates & Thane Harrison, 2004. "Baseball Strikes and the Demand for Attendance," UMBC Economics Department Working Papers 04-101, UMBC Department of Economics.
  3. Eckard, E Woodrow, 2001. "Free Agency, Competitive Balance, and Diminishing Returns to Pennant Contention," Economic Inquiry, Western Economic Association International, vol. 39(3), pages 430-43, July.
  4. Jaume Garcia & Placido Rodriguez, 2002. "The Determinants of Football Match Attendance Revisited: Empirical Evidence from the Spanish Football League," Journal of Sports Economics, , vol. 3(1), pages 18-38, February.
  5. Coates, Dennis & Humphreys, Brad R., 2003. "The effect of professional sports on earnings and employment in the services and retail sectors in US cities," Regional Science and Urban Economics, Elsevier, vol. 33(2), pages 175-198, March.
  6. Brad R. Humphreys, 2002. "Alternative Measures of Competitive Balance in Sports Leagues," Journal of Sports Economics, , vol. 3(2), pages 133-148, May.
  7. Leo Kahane & Stephen Shmanske, 1997. "Team roster turnover and attendance in major league baseball," Applied Economics, Taylor and Francis Journals, vol. 29(4), pages 425-431.
  8. Dennis Coates & Brad R. Humphreys, 2001. "The Economic Consequences of Professional Sports Strikes and Lockouts," Southern Economic Journal, Southern Economic Association, vol. 67(3), pages 737-747, January.
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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. More New Stadiums
    by jamesreade in International Journal of Sport Finance Blog on 2009-07-28 03:56:09
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Cited by:
  1. Daniel, Rascher, 2008. "Franchise Relocations, Expansions, and Mergers in Professional Sports Leagues," MPRA Paper 25809, University Library of Munich, Germany.
  2. Dennis Coates & Brad R. Humphreys, 2008. "The Effect of On-Field Success on Stock Prices: Evidence from Nippon Professional Baseball," Working Papers 0805, International Association of Sports Economists & North American Association of Sports Economists.
  3. B Buraimo & R Simmons, 2006. "Market size and attendance in English Premier League football," Working Papers 574562, Lancaster University Management School, Economics Department.
  4. Rodney J. Paul & Andrew P. Weinbach, 2011. "Minor League Baseball Attendance in the Pacific Northwest: A Study of the Effects of Winning, Scoring, Demographics and Promotions in the Northwest and Pioneer Baseball Leagues," Ekonomika a Management, University of Economics, Prague, vol. 2011(2).
  5. Craig Depken, 2007. "Another look at anti-scalping laws: Theory and evidence," Public Choice, Springer, vol. 130(1), pages 55-77, January.

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