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Selling the Big Game: Estimating the Economic Impact of Mega-Events through Taxable Sales

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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

Professional 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.

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File URL: http://college.holycross.edu/RePEc/spe/BaadeBaumannMatheson_TaxableSales.pdf
File Function: WEA 2005 paper
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Bibliographic Info

Paper provided by International Association of Sports Economists & North American Association of Sports Economists in its series Working Papers with number 0610.

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Length: 26 pages
Date of creation: Jun 2006
Date of revision:
Handle: RePEc:spe:wpaper:0610

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Web page: http://www.cdes.fr/index.php?id=fr69
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Web page: http://www.kennesaw.edu/naase
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Keywords: impact analysis; sports; mega-event; championship;

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References

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  1. repec:sae:jospec:v:2:y:2001:i:4:p:307-327 is not listed on IDEAS
  2. 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.
  3. Robert Baade & Victor Matheson, 2004. "The Quest for the Cup: Assessing the Economic Impact of the World Cup," IASE Conference Papers 0406, International Association of Sports Economists.
  4. Victor Matheson, 2004. "Economic Multipliers and Mega-Event Analysis," Working Papers 0402, College of the Holy Cross, Department of Economics.
  5. 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.
  6. Stefan Szymanski, 2001. "Up for the Cup," World Economics, World Economics, Economic & Financial Publishing, PO Box 69, Henley-on-Thames, Oxfordshire, United Kingdom, RG9 1GB, vol. 2(4), pages 175-183, October.
  7. repec:sae:jospec:v:3:y:2002:i:3:p:291-299 is not listed on IDEAS
  8. 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.
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Citations

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Cited by:
  1. 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.
  2. Victor Matheson & Kent Grote, 2007. "Gamblers' Love for Variety and Substitution among Lotto Games," Journal of Gambling Business and Economics, University of Buckingham Press, vol. 1(2), pages 85-99, June.
  3. Dennis Coates & Brad R. Humphreys, 2008. "Do Economists Reach a Conclusion on Subsidies for Sports Franchises, Stadiums, and Mega-Events?," Working Papers 0818, International Association of Sports Economists & North American Association of Sports Economists.
  4. Robert Baade & Robert Baumann & Victor Matheson, 2007. "Big Men on Campus: Estimating the Economic Impact of College Sports on Local Economies," Working Papers 0704, College of the Holy Cross, Department of Economics.
  5. Robert Baade & Robert Baumann & Victor Matheson, 2006. "The Economic Consequences of Professional Sports Strikes and Lockouts: Revisited," Working Papers 0609, International Association of Sports Economists & North American Association of Sports Economists.
  6. Robert Baade & Victor Matheson, 2011. "An Evaluation of the Economic Impact of National Football League Mega-events," Working Papers 1119, International Association of Sports Economists & North American Association of Sports Economists.
  7. Robert Baade & Robert Baumann & Victor Matheson, 2007. "Down, Set, Hike: The Economic Impact of College Football Games on Local Economies," Working Papers 0701, International Association of Sports Economists & North American Association of Sports Economists.
  8. Victor Matheson, 2010. "Economics of the Super Bowl," Working Papers 1001, International Association of Sports Economists & North American Association of Sports Economists.
  9. 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 & North American Association of Sports Economists.
  10. 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.
  11. Dennis Coates & Victor Matheson, 2009. "Mega-Events and Housing Costs: Raising the Rent while Raising the Roof?," Working Papers 0903, College of the Holy Cross, Department of Economics.
  12. Robert Gasquez & Vicente Royuela, 2012. "Is football an indicator of development at the international level?," Working Papers in Economics 275, Universitat de Barcelona. Espai de Recerca en Economia.

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