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Novelty Effects Of New Facilities On Attendance At Professional Sporting Events

  • DENNIS COATES
  • BRAD R. HUMPHREYS

We investigate the effect of new facilities on attendance in professional baseball, basketball, and football from 1969 to 2001. We find a strong, persistent effect in baseball and basketball, and little effect in football. Size and duration estimates imply that baseball teams sell 2,500,794 additional tickets over the first eight seasons, basketball teams 293,878 over the first nine seasons, and football teams 137,792 over the first five seasons, implying an increase in revenues that could defray public subsidies that state and local governments provide for new sports construction projects. Rough calculations suggest that stadium subsidies are an inefficient method of subsidizing professional sports franchises. (JEL "R39", "D12", "L83") Copyright 2005 Western Economic Association International.

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Article provided by Western Economic Association International in its journal Contemporary Economic Policy.

Volume (Year): 23 (2005)
Issue (Month): 3 (07)
Pages: 436-455

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Handle: RePEc:bla:coecpo:v:23:y:2005:i:3:p:436-455
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  1. Brad R. Humphreys, 2002. "Alternative Measures of Competitive Balance in Sports Leagues," Journal of Sports Economics, , vol. 3(2), pages 133-148, May.
  2. Leo Kahane & Stephen Shmanske, 1997. "Team roster turnover and attendance in major league baseball," Applied Economics, Taylor & Francis Journals, vol. 29(4), pages 425-431.
  3. 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.
  4. Dennis Coates & Brad R. Humphreys, 2001. "The Economic Consequences of Professional Sports Strikes and Lockouts," Southern Economic Journal, Southern Economic Association, vol. 67(3), pages 737-747, January.
  5. Dennis Coates & Thane Harrison, 2004. "Baseball Strikes and the Demand for Attendance," UMBC Economics Department Working Papers 04-101, UMBC Department of Economics.
  6. Jaume Garcia & Placido Rodriguez, 2002. "The Determinants of Football Match Attendance Revisited: Empirical Evidence from the Spanish Football League," Journal of Sports Economics, , vol. 3(1), pages 18-38, February.
  7. Eckard, E Woodrow, 2001. "Free Agency, Competitive Balance, and Diminishing Returns to Pennant Contention," Economic Inquiry, Western Economic Association International, vol. 39(3), pages 430-43, July.
  8. 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.
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