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The Novelty Effect of the New Football Stadia: The Case of Germany

Author

Listed:
  • Arne Feddersen

    () (Hamburg University)

  • Wolfgang Maennig

    () (Hamburg University)

  • Malte Borcherding

    () (Hamburg University)

Abstract

When decisions are made to construct new stadia or to undertake major renovation work, the decision makers often assume that more spectators will be attracted. This so-called “novelty effect” is used as an argument that an impulse towards increased demand for the region and its services will be created, thus justifying public sector management to supply public funding. This study registers the novelty effect of soccer stadia in Germany since the beginning of the Bundesliga (1963-64) up to the end of the 2003-04 season and is based on annual team attendance per game. The data from all 12,488 completed games was used to create the annual attendance per game for each team. A persistent novelty effect of around 2,700 spectators per match (10.7% increase) can be seen. This value is significantly below the values calculated for the US-American professional leagues. The extent to which public funding for soccer stadium buildings can be justified will be small indeed.

Suggested Citation

  • Arne Feddersen & Wolfgang Maennig & Malte Borcherding, 2006. "The Novelty Effect of the New Football Stadia: The Case of Germany," International Journal of Sport Finance, Fitness Information Technology, vol. 1(3), pages 174-188, August.
  • Handle: RePEc:jsf:intjsf:v:1:y:2006:i:3:p:174-188
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    Citations

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    Cited by:

    1. Budzinski, Oliver & Pawlowski, Tim, 2014. "The behavioural economics of competitive balance: Implications for league policy and championship management," Ilmenau Economics Discussion Papers 89, Ilmenau University of Technology, Institute of Economics.
    2. Vlad Ionut Dumitrache, 2016. "About The Smart Sports Development. Evidence From The Uk Premiere League," Journal of Smart Economic Growth, , vol. 1(1), pages 87-95, August.
    3. Budzinski, Oliver & Feddersen, Arne, 2015. "Grundlagen der Sportnachfrage: Theorie und Empirie der Einflussfaktoren auf die Zuschauernachfrage," Ilmenau Economics Discussion Papers 94, Ilmenau University of Technology, Institute of Economics.
    4. Stan du Plessis & Wolfgang Maennig, 2007. "World Cup 2010: South African Economic Perspectives and Perspectives Policy Challenges Informed by the Experience of Germany 2006," Working Papers 004, Chair for Economic Policy, University of Hamburg.
    5. WOLFGANG MAENNIG & STAN du PLESSIS, 2007. "World Cup 2010: South African Economic Perspectives And Policy Challenges Informed By The Experience Of Germany 2006," Contemporary Economic Policy, Western Economic Association International, vol. 25(4), pages 578-590, October.

    More about this item

    Keywords

    sports venues; attendance estimation; novelty effect; public funding;

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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