Dennis Coates () (Department of Economics, University of Maryland, Baltimore County) Brad R. Humphreys () (Department of Economics, University of Alberta)
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This paper reviews the empirical literature assessing the effects of subsidies for professional sports franchises and facilities. The evidence reveals a great deal of consistency among economists doing research in this area. That evidence is that sports subsidies cannot be justified on the grounds of local economic development, income growth or job creation, those arguments most frequently used by subsidy advocates. The paper also relates survey evidence showing that economists in general oppose sports subsidies. In addition to reviewing the empirical literature, we describe the economic intuition that probably underlies the strong consensus among economists against sports subsidies.
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Paper provided by International Association of Sports Economists in its series Working Papers with number
0818.
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