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Selling the Game: Estimating the Economic Impact of Professional Sports through Taxable Sales

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Author Info

  • Robert A. Baade

    ()
    (Department of Economics and Business, Lake Forest College, Lake Forest, IL 60045, USA)

  • Robert Baumann

    ()
    (Department of Economics, Box 192A, College of the Holy Cross, Worcester, MA 01610-2395, USA)

  • Victor A. Matheson

    ()
    (Department of Economics, Box 157A, College of the Holy Cross, Worcester, MA 01610-2395, USA)

Abstract

Sports leagues, franchises, and civic boosters tout the economic benefits of professional sports as an incentive for host cities to construct new stadiums or arenas at considerable public expense. Past league-sponsored studies have estimated that new stadiums, franchises, and mega-events such as the Super Bowl increase economic activity by potentially hundreds of millions of dollars in host cities. A detailed regression analysis of taxable sales in Florida over the period extending from 1980 to 2005 fails to support these claims. New stadiums, arenas, and franchises, as well as mega-events, appear to be as likely to reduce taxable sales as increase them. Similarly, strikes and lockouts in professional sports have not systematically lead to reductions in local taxable sales.

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Bibliographic Info

Article provided by Southern Economic Association in its journal Southern Economic Journal.

Volume (Year): 74 (2008)
Issue (Month): 3 (January)
Pages: 794-810

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Handle: RePEc:sej:ancoec:v:74:3:y:2008:p:794-810

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Web page: http://www.southerneconomic.org/
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. More from the MMQB (the source of much of my economics inspiration)
    by John Whitehead in Environmental Economics on 2011-05-24 19:04:03
  2. The economic wisdom of Ray Lewis (updated)
    by Victor Matheson in The Sports Economist on 2011-05-23 01:54:00
  3. Cubsidies: The Cubbies Want in on the Subsidy Action
    by Phil Miller in The Sports Economist on 2012-07-17 12:29:12
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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Cited by:
  1. Arne Feddersen & Wolfgang Maennig, 2010. "Sectoral Labour Market Effects of the 2006 FIFA World Cup," Working Papers 033, Chair for Economic Policy, University of Hamburg.
  2. Robert Baade & Victor Matheson, 2011. "An Evaluation of the Economic Impact of National Football League Mega-events," Working Papers 1112, College of the Holy Cross, Department of Economics.
  3. Dennis Coates & Victor Matheson, 2009. "Mega-Events and Housing Costs: Raising the Rent while Raising the Roof?," Working Papers 0902, International Association of Sports Economists & North American Association of Sports Economists.
  4. Robert Baade & Robert Baumann & Victor Matheson, 2011. "Big Men on Campus: Estimating the Economic Impact of College Sports on Local Economies," Regional Studies, Taylor & Francis Journals, vol. 45(3), pages 371-380.
  5. Victor Matheson, 2009. "Economics of the Super Bowl," Working Papers 0914, College of the Holy Cross, Department of Economics.
  6. Robert Baumann & Victor Matheson & Chihiro Muroi, 2008. "Bowling in Hawaii: Examining the Effectiveness of Sports-Based Tourism Strategies," Working Papers 0808, College of the Holy Cross, Department of Economics.
  7. 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.
  8. Robert Baade & Robert Baumann & Victor Matheson, 2008. "Rejecting “Conventional” Wisdom: Estimating the Economic Impact of National Political Conventions," Working Papers 0804, College of the Holy Cross, Department of Economics.
  9. Robert A. Baade & Victor A. Matheson, 2007. "Professional Sports, Hurricane Katrina, And The Economic Redevelopment Of New Orleans," Contemporary Economic Policy, Western Economic Association International, vol. 25(4), pages 591-603, October.
  10. Dennis Coates & Craig A. Depken, II, 2008. "Do College Football Games Pay for Themselves? The Impact of College Football Games on Local Sales Tax Revenue," Working Papers 0802, International Association of Sports Economists & North American Association of Sports Economists.
  11. Robert Baade & Victor Matheson, 2007. "NFL Governance and the Fate of the New Orleans Saints: Some Observations," Working Papers 0709, International Association of Sports Economists & North American Association of Sports Economists.
  12. Robert Baumann & Bryan Engelhardt & Victor Matheson, 2009. "Hail to the Chief: Assessing the Economic Impact of Presidential Inaugurations on the Washington, D.C. Local Economy," Working Papers 0901, College of the Holy Cross, Department of Economics.

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