Selling the Big Game: Estimating the Economic Impact of Mega-Events through Taxable Sales
Professional sports leagues, franchises, and civic boosters, have used the promise of an all star game or league championship as an incentive for host cities to construct new stadiums or arenas at considerable public expense. Past league-sponsored studies have estimated that Super Bowls, All-Star games and other sports mega-events increase economic activity by hundreds of millions of dollars in host cities. Our analysis fails to support these claims. Our detailed regression analysis of taxable sales in Florida over the period 1980 to 2004 reveals that on, average, mega-events ranging from the World Cup to the World Series have been associated with reductions in taxable sales in host regions of $5 to $10 million per month. Likewise, strikes in Major League Baseball, the National Hockey League, and the National Basketball League, each of which has resulted in the cancellation of large parts of entire seasons, appear to have also had no demonstrable negative effect on taxable sales in host cities. Length: 31 pages
|Date of creation:||Jul 2005|
|Publication status:||Published in Southern Economic Journal, Vol. 74:3, January 2008, pp. 794-810.|
|Contact details of provider:|| Phone: (508)793-3362|
Fax: (508) 793-3708
Web page: http://www.holycross.edu/departments/economics/website/
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- Victor Matheson & Robert Baade, 2005. "Have Public Finance Principles Been Shut Out in Financing New Sports Stadiums for the NFL in the United States?," Working Papers 0511, College of the Holy Cross, Department of Economics.
- Stefan Szymanski, 2001. "Up for the Cup," World Economics, World Economics, Economic & Financial Publishing, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 2(4), pages 175-183, October.
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