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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)

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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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Publisher 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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Find related papers by JEL classification:
L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Recreation; Tourism

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  1. Robert Baade & Robert Baumann & Victor Matheson, 2007. "Big Men on Campus: Estimating the Economic Impact of College Sports on Local Economies," Working Papers 0726, International Association of Sports Economists. [Downloadable!]
    Other versions:
  2. 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. [Downloadable!]
    Other versions:
  3. 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. [Downloadable!]
  4. 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. [Downloadable!]
  5. Robert Baumann & Victor Matheson & Chihiro Muroi, 2008. "Bowling in Hawaii: Examining the Effectiveness of Sports-Based Tourism Strategies," Working Papers 0807, International Association of Sports Economists. [Downloadable!]
    Other versions:
  6. 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. [Downloadable!]
  7. 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. [Downloadable!]
    Other versions:
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This page was last updated on 2009-11-6.


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