Selling the Big Game: Estimating the Economic Impact of Mega-Events through Taxable Sales
AbstractProfessional sports leagues, franchises, and civic boosters, have used the promise of an all star game or league championship as an incentive for host cities to construct new stadiums or arenas at considerable public expense. Past league-sponsored studies have estimated that Super Bowls, All-Star games and other sports mega-events increase economic activity by hundreds of millions of dollars in host cities. Our analysis fails to support these claims. Our detailed regression analysis of taxable sales in Florida over the period 1980 to 2004 reveals that on, average, mega-events ranging from the World Cup to the World Series have been associated with reductions in taxable sales in host regions of $5 to $10 million per month. Likewise, strikes in Major League Baseball, the National Hockey League, and the National Basketball League, each of which has resulted in the cancellation of large parts of entire seasons, appear to have also had no demonstrable negative effect on taxable sales in host cities. Length: 31 pages
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Bibliographic InfoPaper provided by College of the Holy Cross, Department of Economics in its series Working Papers with number 0510.
Date of creation: Jul 2005
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impact analysis; sports; mega-event; championship;
Other versions of this item:
- Robert Baade & Robert Baumann & Victor Matheson, 2006. "Selling the Big Game: Estimating the Economic Impact of Mega-Events through Taxable Sales," Working Papers 0610, International Association of Sports Economists & North American Association of Sports Economists.
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
- R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-07-03 (All new papers)
- NEP-GEO-2005-07-03 (Economic Geography)
- NEP-SPO-2005-07-03 (Sports & Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Robert Baade & Victor Matheson, 2004.
"The Quest for the Cup: Assessing the Economic Impact of the World Cup,"
Taylor & Francis Journals, vol. 38(4), pages 343-354.
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- Robert Baade & Robert Baumann & Victor Matheson, 2005. "Predicting the Path to Recovery from Hurricane Katrina through the Lens of Hurricane Andrew and the Rodney King Riots," Working Papers 0515, College of the Holy Cross, Department of Economics.
- Victor Matheson, 2004.
"Economic Multipliers and Mega-Event Analysis,"
0402, College of the Holy Cross, Department of Economics.
- Victor Matheson & Robert Baade, 2005. "Have Public Finance Principles Been Shut Out in Financing New Sports Stadiums for the NFL in the United States?," Working Papers 0511, College of the Holy Cross, Department of Economics.
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- John J. Siegfried & Andrew Zimbalist, 2000. "The Economics of Sports Facilities and Their Communities," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 95-114, Summer.
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