Selling the Big Game: Estimating the Economic Impact of Mega-Events through Taxable Sales
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.Download Info
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Paper provided by International Association of Sports Economists & North American Association of Sports Economists in its series Working Papers with number 0610.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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Related research
Keywords: impact analysis; sports; mega-event; championship;Other versions of this item:
- Robert Baade & Robert Baumann & Victor Matheson, 2005. "Selling the Big Game: Estimating the Economic Impact of Mega-Events through Taxable Sales," Working Papers 0510, College of the Holy Cross, Department of Economics.
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; 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-2006-08-26 (All new papers)
- NEP-GEO-2006-08-26 (Economic Geography)
- NEP-SPO-2006-08-26 (Sports & Economics)
- NEP-TUR-2006-08-26 (Tourism Economics)
- NEP-URE-2006-08-26 (Urban & Real Estate Economics)
References
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"The Quest for the Cup: Assessing the Economic Impact of the World Cup,"
IASE Conference Papers
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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.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- 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.
- 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.
- Victor Matheson & Kent Grote, 2006. "Gamblers’ Love for Variety and Substitution among Lotto Games," Working Papers 0609, College of the Holy Cross, Department of Economics.
- 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.
- Dennis Coates & Brad R. Humphreys, 2008. "Do Economists Reach a Conclusion on Subsidies for Sports Franchises, Stadiums, and Mega-Events?," Econ Journal Watch, Econ Journal Watch, vol. 5(3), pages 294-315, September.
- 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.
- Robert Baade & Robert Baumann & Victor Matheson, 2011. "Big Men on Campus: Estimating the Economic Impact of College Sports on Local Economies," Regional Studies, Taylor and Francis Journals, vol. 45(3), pages 371-380.
- 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 & North American Association of Sports Economists.
- 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.
- Robert Baade & Robert Baumann & Victor Matheson, 2006. "The Economic Consequences of Professional Sports Strikes and Lockouts: Revisited," Working Papers 0604, College of the Holy Cross, Department of Economics.
- 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.
- 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.
- 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.
- Robert Baade & Robert Baumann & Victor Matheson, 2007. "Down, Set, Hike: The Economic Impact of College Football Games on Local Economies," Working Papers 0702, College of the Holy Cross, Department of Economics.
- Victor Matheson, 2010.
"Economics of the Super Bowl,"
Working Papers
1001, International Association of Sports Economists & North American Association of Sports Economists.
- Victor Matheson, 2009. "Economics of the Super Bowl," Working Papers 0914, College of the Holy Cross, Department of Economics.
- 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.
- 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.
- 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.
- Robert A Baade & Robert Baumann & Victor A Matheson, 2009. "Rejecting “Conventional” Wisdom: Estimating the Economic Impact of National Political Conventions," Eastern Economic Journal, Palgrave Macmillan, vol. 35(4), pages 520-530.
- 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.
- Dennis Coates & Victor Matheson, 2011. "Mega-events and housing costs: raising the rent while raising the roof?," The Annals of Regional Science, Springer, vol. 46(1), pages 119-137, February.
- 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.
- 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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