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Prosperity or Blight? A Question of Major League Stadia Locations

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  • Arthur C. Nelson

    (Georgia Institute of Technology)

Abstract

Literature challenges the economic wisdom of major league sports stadia, especially when subsidized, but they continue to be constructed. If officials decide that a new stadium will be built, does it matter where it goes? This article theorizes that when major league stadia locate in the central business district (CBD), the metropolitan statistical area’s share of regional wealth increases and that share rises as more major league teams play there. The reason is that people attending games in the CBD are more likely to spend money before and after games in the CBD than if they attend games at non-CBD locations. By contrast, non-CBD stadia may create opportunity costs. The moat of parking that surrounds many such stadia may discourage development from locating nearby. Investments that could have generated more economic activity are diverted, sometimes outside the metropolitan area. Empirical evaluation supports theoretical expectations.

Suggested Citation

  • Arthur C. Nelson, 2001. "Prosperity or Blight? A Question of Major League Stadia Locations," Economic Development Quarterly, , vol. 15(3), pages 255-265, August.
    • Handle: RePEc:sae:ecdequ:v:15:y:2001:i:3:p:255-265
    DOI: 10.1177/089124240101500305
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    References listed on IDEAS

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    1. Robert A. Baade & Richard F. Dye, 1988. "Sports Stadiums and Area Development: A Critical Review," Economic Development Quarterly, , vol. 2(3), pages 265-275, August.
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    Cited by:

    1. Geoffrey Propheter, 2014. "Local Sales Tax Revenue Redistribution and Sports: The Case of Major League Soccer in Bridgeview," Public Budgeting & Finance, Wiley Blackwell, vol. 34(3), pages 73-91, September.
    2. Plessis Stan du & Maennig Wolfgang, 2010. "Ökonomische Wirkungen der Fußball-WM 2010: Eine erste Ex-post-Analyse," Review of Economics, De Gruyter, vol. 61(3), pages 262-278, December.
    3. Robert W. Wassmer, 2001. "Metropolitan Prosperity from Major League Sports in the CBD: Stadia Locations or Just Strength of the Central City? A Reply to Arthur C. Nelson," Economic Development Quarterly, , vol. 15(3), pages 266-271, August.
    4. Sparvero, Emily & Chalip, Laurence, 2007. "Professional Teams as Leverageable Assets: Strategic Creation of Community Value," Sport Management Review, Elsevier, vol. 10(1), pages 1-30, May.
    5. WOLFGANG MAENNIG & STAN Du PLESSIS, 2007. "World Cup 2010: South African Economic Perspectives And Policy Challenges Informed By The Experience Of Germany 2006," Contemporary Economic Policy, Western Economic Association International, vol. 25(4), pages 578-590, October.
    6. Dennis Coates & Brad R. Humphreys, 2008. "Do Economists Reach a Conclusion on Subsidies for Sports Franchises, Stadiums, and Mega-Events?," Econ Journal Watch, Econ Journal Watch, vol. 5(3), pages 294-315, September.
    7. Herman L. Boschken, 2008. "A Multiple-perspectives Construct of the American Global City," Urban Studies, Urban Studies Journal Limited, vol. 45(1), pages 3-28, January.
    8. Abbiasov, Timur & Sedov, Dmitry, 2023. "Do local businesses benefit from sports facilities? The case of major league sports stadiums and arenas," Regional Science and Urban Economics, Elsevier, vol. 98(C).
    9. Agha, Nola & Rascher, Daniel, 2013. "When can economic impact be positive? Nine conditions that explain why smaller sports can have bigger impacts," MPRA Paper 48016, University Library of Munich, Germany.
    10. Dehring, Carolyn A. & Depken II, Craig A. & Ward, Michael R., 2008. "A direct test of the homevoter hypothesis," Journal of Urban Economics, Elsevier, vol. 64(1), pages 155-170, July.
    11. Deepak Premkumar & Austin Quackenbush & Georgeanne Artz & Peter Orazem, 2013. "If You Build it, Will They Come?: Fiscal Federalism, Local Provision of Public Tourist Amenities, and the Vision Iowa Fund," The Review of Regional Studies, Southern Regional Science Association, vol. 43(2,3), pages 155-173, Winter.
    12. Mark S. Rosentraub, 2006. "The Local Context of a Sports Strategy for Economic Development," Economic Development Quarterly, , vol. 20(3), pages 278-291, August.
    13. Geoffrey Propheter, 2020. "Does Proximity to a New Sports Facility Affect Existing Businesses’ Survival Time?," Journal of Sports Economics, , vol. 21(5), pages 451-476, June.
    14. Dennis Coates, 2007. "Stadiums And Arenas: Economic Development Or Economic Redistribution?," Contemporary Economic Policy, Western Economic Association International, vol. 25(4), pages 565-577, October.

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