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Down, Set, Hike: The Economic Impact of College Football Games on Local Economies

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Author Info

  • Robert Baade

    ()
    (Department of Economics and Business, Lake Forest College)

  • Robert Baumann

    ()
    (Department of Economics, College of the Holy Cross)

  • Victor Matheson

    ()
    (Department of Economics, College of the Holy Cross)

Abstract

This paper provides an empirical examination of the economic impact of spectator sports on local economies. Confirming the results of other ex post analyses of sports in general, this paper finds no statistically significant evidence that college football games in particular contribute positively to a host’s economy. Our analysis from 1970-2004 of 63 metropolitan areas that play host to big-time college football programs finds that neither the number of home games played, the winning percentage of the local team, nor winning a national championship has a discernable impact on either employment or personal income in the cities where the teams play. While successful college football teams may bring fame to their alma mater, fortune appears to be a bit more elusive.

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File URL: http://college.holycross.edu/RePEc/hcx/Matheson-Baumann_CollegeFootball.pdf
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Bibliographic Info

Paper provided by College of the Holy Cross, Department of Economics in its series Working Papers with number 0702.

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Length: 19 pages
Date of creation: Feb 2007
Date of revision:
Publication status: Published in Journal of Sports Economics, Vol. 9:6, December 2008, 628-643.
Handle: RePEc:hcx:wpaper:0702

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Phone: (508)793-3362
Fax: (508) 793-3708
Web page: http://www.holycross.edu/departments/economics/website/
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Keywords: sports; football; college sports; impact analysis; mega-event;

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References

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  1. TA. Rhoads & S. Gerking, 2000. "Educational contributions, academic quality, and athletic success," Contemporary Economic Policy, Western Economic Association International, vol. 18(2), pages 248-258, 04.
  2. Louis H. Amato & John M. Gandar & Richard A. Zuber, 2001. "The Impact of Proposition 48 on the Relationship Between Football Success and Football Player Graduation Rates," Journal of Sports Economics, , vol. 2(2), pages 101-112, May.
  3. Victor Matheson & Robert Baade, 2004. "Padding Required: Assessing the Economic Impact of the Super Bowl," Working Papers 0403, College of the Holy Cross, Department of Economics.
  4. Amato, Louis & Gandar, John M. & Tucker, Irvin B. & Zuber, Richard A., 1996. "Bowls versus playoffs: The impact on football player graduation rates in the national collegiate athletic association," Economics of Education Review, Elsevier, vol. 15(2), pages 187-195, April.
  5. Dennis Coates, 2006. "The Tax Benefits of Hosting the Super Bowl and the MLB All-Star Game: The Houston Experience," International Journal of Sport Finance, Fitness Information Technology, vol. 1(4), pages 239-252, November.
  6. Dennis Coates & Brad R. Humphreys, 2002. "The Economic Impact of Postseason Play in Professional Sports," Journal of Sports Economics, , vol. 3(3), pages 291-299, August.
  7. Victor Matheson, 2009. "Economic Multipliers and Mega-Event Analysis," International Journal of Sport Finance, Fitness Information Technology, vol. 4(1), pages 63-70, February.
  8. Robert A. Baade & Victor A. Matheson, 2001. "Home Run or Wild Pitch?," Journal of Sports Economics, , vol. 2(4), pages 307-327, November.
  9. 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.
  10. Murphy, Robert G. & Trandel, Gregory A., 1994. "The relation between a university's football record and the size of its applicant pool," Economics of Education Review, Elsevier, vol. 13(3), pages 265-270, September.
  11. 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.
  12. Tucker, Irvin III & Amato, Louis, 1993. "Does big-time success in football or basketball affect SAT scores?," Economics of Education Review, Elsevier, vol. 12(2), pages 177-181, June.
  13. Tucker, Irvin B., 2004. "A reexamination of the effect of big-time football and basketball success on graduation rates and alumni giving rates," Economics of Education Review, Elsevier, vol. 23(6), pages 655-661, December.
  14. 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.
  15. McCormick, Robert E & Tensley, Maurice, 1987. "Athletics versus Academics? Evidence from SAT Scores," Journal of Political Economy, University of Chicago Press, vol. 95(5), pages 1103-16, October.
  16. Dennis Coates & Craig A. Depken, II, 2006. "Mega-Events: Is the Texas-Baylor game to Waco what the Super Bowl is to Houston?," Working Papers 0606, International Association of Sports Economists & North American Association of Sports Economists.
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Cited by:
  1. Bernard F. Lentz & David N. Laband, 2008. "The Impact of College Athletics on Employment in the Restaurant and Accommodations Industries," Working Papers 0803, International Association of Sports Economists & North American Association of Sports Economists.
  2. 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.

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