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Do New Sports Facilities Attract New Businesses?

Author

Listed:
  • Kaitlyn Harger

    (Florida Gulf Coast University)

  • Brad R. Humphreys

    (West Virginia University, Department of Economics)

  • Amanda Ross

    (West Virginia University, Department of Economics)

Abstract

We examine the impact of new sports facilities on new businesses, an unexplored topic in the literature. We use data from the Dunn and Bradstreet MarketPlace files to examine how new sports facilities affect nearby business activity in terms of the number of new businesses and workers. We find no evidence of increased new businesses openings after the opening of new sports facilities in 13 US cities in the 2000s; employment at new businesses near new facilities is larger than at new businesses elsewhere in the MSA; this increase cannot be linked to businesses in any specific industry.

Suggested Citation

  • Kaitlyn Harger & Brad R. Humphreys & Amanda Ross, 2015. "Do New Sports Facilities Attract New Businesses?," Working Papers 15-32, Department of Economics, West Virginia University.
    • Handle: RePEc:wvu:wpaper:15-32
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    13. Anping Chen & Marlon Boarnet & Mark Partridge & Haifang Huang & Brad R. Humphreys, 2014. "New Sports Facilities And Residential Housing Markets," Journal of Regional Science, Wiley Blackwell, vol. 54(4), pages 629-663, September.
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    Cited by:

    1. Brad R. Humphreys, 2023. "Professional Sports Subsidies and Urban Congestion Externalities: Assessing 50 Years of Failed Urban Economic Development Policies," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 49(4), pages 457-474, October.
    2. Cristian F. Sepulveda, 2022. "Cost-benefit Analysis of an 'Average' Professional Sports Team or Stadium in the United States," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper2210, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    3. Fabio Fantozzi & Francesco Leccese & Giacomo Salvadori & Michele Rocca & Marco Garofalo, 2016. "LED Lighting for Indoor Sports Facilities: Can Its Use Be Considered as Sustainable Solution from a Techno-Economic Standpoint?," Sustainability, MDPI, vol. 8(7), pages 1-13, June.
    4. Abbiasov, Timur & Sedov, Dmitry, 2023. "Do local businesses benefit from sports facilities? The case of major league sports stadiums and arenas," Regional Science and Urban Economics, Elsevier, vol. 98(C).
    5. Geoffrey Propheter, 2019. "Estimating the Effect of Sports Facilities on Local Area Commercial Rents: Evidence From Brooklyn’s Barclays Center," Journal of Sports Economics, , vol. 20(1), pages 91-114, January.
    6. Geoffrey Propheter, 2020. "Does Proximity to a New Sports Facility Affect Existing Businesses’ Survival Time?," Journal of Sports Economics, , vol. 21(5), pages 451-476, June.
    7. Duane W. Rockerbie & Stephen T. Easton, 2019. "Of Bricks and Bats: New Stadiums, Talent Supply, and Team Performance in Major League Baseball," Journal of Sports Economics, , vol. 20(1), pages 3-24, January.
    8. Muwei Xi & Dingqing Wang & Ye Xiang, 2023. "Fiscal Expenditure on Sports and Regional Carbon Emissions: Evidence from China," Sustainability, MDPI, vol. 15(9), pages 1-15, May.
    9. Shoag, Daniel & Veuger, Stan, 2017. "Taking My Talents to South Beach (and Back)," Working Paper Series rwp17-019, Harvard University, John F. Kennedy School of Government.
    10. Nola Agha & Daniel Rascher, 2021. "Economic Development Effects of Major and Minor League Teams and Stadiums," Journal of Sports Economics, , vol. 22(3), pages 274-294, April.
    11. Geoffrey Propheter, 2023. "Sports Facilities as a Housing Amenity: Do Prices Follow Facilities?," Journal of Sports Economics, , vol. 24(4), pages 443-474, May.
    12. Hutchinson, Michael & Berg, Brennan K. & Kellison, Timothy B., 2018. "Political activity in escalation of commitment: Sport facility funding and government decision making in the United States," Sport Management Review, Elsevier, vol. 21(3), pages 263-278.
    13. Geoffrey Propheter, 2021. "Sports facilities and the local property tax base in recovery," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(5), pages 1687-1701, October.
    14. Lucciano Testa & David Parra-Camacho & Ana María Gómez-Tafalla & Fernando Garcia-Pascual & Daniel Duclos-Bastías, 2023. "Local Impact of a Sports Centre: Effects on Future Intentions," Sustainability, MDPI, vol. 15(6), pages 1-15, March.
    15. Humphreys, Brad R. & Nowak, Adam, 2017. "Professional sports facilities, teams and property values: Evidence from NBA team departures," Regional Science and Urban Economics, Elsevier, vol. 66(C), pages 39-51.
    16. John Charles Bradbury, 2022. "The impact of sports stadiums on localized commercial activity: Evidence from a Business Improvement District," Journal of Regional Science, Wiley Blackwell, vol. 62(1), pages 194-217, January.

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    More about this item

    Keywords

    new sports facility; difference-in-differences model; firm level data;
    All these keywords.

    JEL classification:

    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • Z23 - Other Special Topics - - Sports Economics - - - Finance

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