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The Economic Impact of Stadiums and Teams

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  • Nola Agha

Abstract

This article uses an extensive unique data set to investigate the efficiency of government subsides for minor league baseball teams and stadiums by measuring pecuniary gains in a local economy. Specifically, a dynamic panel data model incorporating 238 Metropolitan Statistical Areas (MSAs) that hosted affiliated or independent minor league teams between 1985 and 2006 shows that AAA teams, A+ teams, AA stadiums, and rookie stadiums are all associated with significant positive effects on the change in local per capita income. The presence of positive effects is strikingly different from decades of nonpositive results at the major league level.

Suggested Citation

  • Nola Agha, 2013. "The Economic Impact of Stadiums and Teams," Journal of Sports Economics, , vol. 14(3), pages 227-252, June.
    • Handle: RePEc:sae:jospec:v:14:y:2013:i:3:p:227-252
    DOI: 10.1177/1527002511422939
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    Cited by:

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    2. Agha, Nola & Rascher, Daniel, 2013. "When can economic impact be positive? Nine conditions that explain why smaller sports can have bigger impacts," MPRA Paper 48016, University Library of Munich, Germany.
    3. Pete Groothuis & Kurt W. Rotthoff, 2014. "Surveying the Literature and the People: The Economic Impact of Sports Teams and Civic Pride," Working Papers 14-05, Department of Economics, Appalachian State University.
    4. 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.
    5. Seth R. Gitter & Thomas A. Rhoads, 2014. "Stadium Construction And Minor League Baseball Attendance," Contemporary Economic Policy, Western Economic Association International, vol. 32(1), pages 144-154, January.
    6. Gonçalo Quintal & Gustavo Paipe & José Luis Felipe & Maria José Carvalho, 2016. "Strategic tool to estimate the consumption patterns of non-residents spectators at sporting events (Liga NOS): Adaptation to Portuguese reality," Brazilian Business Review, Fucape Business School, vol. 13(Special I), pages 102-120, November.
    7. Nola Agha & Thomas Rhoads, 2016. "The League Standing Effect: The Case of a Split Season in Minor League Baseball," Working Papers 2016-13, Towson University, Department of Economics, revised Jul 2016.
    8. 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.
    9. Brian P Soebbing & Daniel S Mason & Brad R Humphreys, 2016. "Novelty effects and sports facilities in smaller cities: Evidence from Canadian hockey arenas," Urban Studies, Urban Studies Journal Limited, vol. 53(8), pages 1674-1690, June.
    10. Deepak Premkumar & Austin Quackenbush & Georgeanne Artz & Peter Orazem, 2013. "If You Build it, Will They Come?: Fiscal Federalism, Local Provision of Public Tourist Amenities, and the Vision Iowa Fund," The Review of Regional Studies, Southern Regional Science Association, vol. 43(2,3), pages 155-173, Winter.
    11. Eric Joseph van Holm, 2019. "Minor stadiums, major effects? Patterns and sources of redevelopment surrounding minor league baseball stadiums," Urban Studies, Urban Studies Journal Limited, vol. 56(4), pages 672-688, March.
    12. Matthew Rousu & Dave Ramsaran & Dylan Furlano, 2015. "Guidelines for Conducting Economic Impact Studies on Fracking," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 21(2), pages 213-225, May.
    13. Kuang-Hua Hu & Fu-Hsiang Chen & Gwo-Hshiung Tzeng, 2016. "Evaluating the Improvement of Sustainability of Sports Industry Policy Based on MADM," Sustainability, MDPI, vol. 8(7), pages 1-21, June.
    14. Qi Ge & Brad R. Humphreys & Alexander Eisert, 2022. "Vertical Integration and Competitive Balance in Professional Sports: Evidence from Minor League Baseball," Working Papers 22-07, Department of Economics, West Virginia University.

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