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Mega-Events: Is the Texas-Baylor game to Waco what the Super Bowl is to Houston?

Author

Listed:
  • Dennis Coates

    () (Department of Economics, University of Maryland, Baltimore County)

  • Craig A. Depken, II

    () (Department of Economics, University of Texas at Arlington)

Abstract

This paper estimates the total sales and sales tax revenue impacts on host communities of a variety of professional and collegiate sporting events. Using 126 jurisdictions from Texas, covering every month from January, 1990 through April of 2006, the analysis finds that regular season games in the NBA, NFL, NHL, and MLB have widely disparate effects. The NBA and NFL regular season games are net losers of revenue, NHL and MLB games generate additional revenue. Collegiate regular season football games are revenue generators for small cities and towns home to D-I and D-IAA football, but cities that are home to teams from the old Southwest Conference or the new Big 12 conference do not gain revenues from home contests. The Super Bowl generated over $2 million in tax revenues for Houston, by far the largest revenue boost of any of the events in our data.

Suggested Citation

  • Dennis Coates & Craig A. Depken, II, 2006. "Mega-Events: Is the Texas-Baylor game to Waco what the Super Bowl is to Houston?," Working Papers 0606, International Association of Sports Economists;North American Association of Sports Economists.
  • Handle: RePEc:spe:wpaper:0606
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    File URL: http://web.holycross.edu/RePEc/spe/CoatesDepken_MegaEvents.pdf
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    References listed on IDEAS

    as
    1. Victor A. Matheson, 2005. "Contrary Evidence on the Economic Effect of the Super Bowl on the Victorious City," Journal of Sports Economics, , vol. 6(4), pages 420-428, November.
    2. Dennis Coates, 2006. "The Tax Benefits of Hosting the Super Bowl and the MLB All-Star Game: The Houston Experience," International Journal of Sport Finance, Fitness Information Technology, vol. 1(4), pages 239-252, November.
    3. Victor Matheson & Robert Baade, 2004. "Padding Required: Assessing the Economic Impact of the Super Bowl," Working Papers 0403, College of the Holy Cross, Department of Economics.
    4. Victor Matheson & Robert Baade, 2005. "A Fall Classic? Assessing the Economic Impact of the World Series," Working Papers 0501, College of the Holy Cross, Department of Economics.
    5. Robert Baade & Robert Baumann & Victor Matheson, 2006. "The Economic Consequences of Professional Sports Strikes and Lockouts: Revisited," Working Papers 0604, College of the Holy Cross, Department of Economics.
    6. Dennis Coates & Brad R. Humphreys, 2002. "The Economic Impact of Postseason Play in Professional Sports," Journal of Sports Economics, , vol. 3(3), pages 291-299, August.
    7. Robert A. Baade & Victor A. Matheson, 2001. "Home Run or Wild Pitch?," Journal of Sports Economics, , vol. 2(4), pages 307-327, November.
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    Citations

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    Cited by:

    1. Robert Baade & Robert Baumann & Victor Matheson, 2011. "Big Men on Campus: Estimating the Economic Impact of College Sports on Local Economies," Regional Studies, Taylor & Francis Journals, vol. 45(3), pages 371-380.
    2. Arne Feddersen & Wolfgang Maennig, 2013. "Mega-Events And Sectoral Employment: The Case Of The 1996 Olympic Games," Contemporary Economic Policy, Western Economic Association International, vol. 31(3), pages 580-603, July.
    3. Dennis Coates & Brad R. Humphreys, 2008. "Do Economists Reach a Conclusion on Subsidies for Sports Franchises, Stadiums, and Mega-Events?," Econ Journal Watch, Econ Journal Watch, vol. 5(3), pages 294-315, September.
    4. Gabe, Todd & Lisac, Nicholas, 2013. "Local Economic Impacts of Popular Music Concerts," MPRA Paper 65911, University Library of Munich, Germany.
    5. Dennis Coates & Craig A. Depken, II, 2008. "Do College Football Games Pay for Themselves? The Impact of College Football Games on Local Sales Tax Revenue," Working Papers 0802, International Association of Sports Economists;North American Association of Sports Economists.
    6. Robert Baumann & Victor Matheson & Chihiro Muroi, 2008. "Bowling in Hawaii: Examining the Effectiveness of Sports-Based Tourism Strategies," Working Papers 0808, College of the Holy Cross, Department of Economics.
    7. Dennis Coates & Victor Matheson, 2011. "Mega-events and housing costs: raising the rent while raising the roof?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 46(1), pages 119-137, February.
    8. Victor Matheson, 2009. "Economics of the Super Bowl," Working Papers 0914, College of the Holy Cross, Department of Economics.
    9. Robert Baade & Robert Baumann & Victor Matheson, 2007. "Down, Set, Hike: The Economic Impact of College Football Games on Local Economies," Working Papers 0701, International Association of Sports Economists;North American Association of Sports Economists.
    10. Dehring, Carolyn A. & Depken II, Craig A. & Ward, Michael R., 2008. "A direct test of the homevoter hypothesis," Journal of Urban Economics, Elsevier, vol. 64(1), pages 155-170, July.
    11. Robert Baade & Victor Matheson, 2007. "NFL Governance and the Fate of the New Orleans Saints: Some Observations," Working Papers 0703, College of the Holy Cross, Department of Economics.
    12. Robert A Baade & Robert Baumann & Victor A Matheson, 2009. "Rejecting “Conventional” Wisdom: Estimating the Economic Impact of National Political Conventions," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 35(4), pages 520-530.
    13. Dennis Coates, 2009. "Hotel Tax Collections and a Local Mega-Event," Working Papers 0901, International Association of Sports Economists;North American Association of Sports Economists.
    14. Baade, Robert A. & Matheson, Victor A., 2012. "Professional sports, hurricane Katrina, and the economic redevelopment of New Orleans," Edition HWWI: Chapters,in: Zur Ökonomik von Spitzenleistungen im internationalen Sport, pages 123-146 Hamburg Institute of International Economics (HWWI).

    More about this item

    Keywords

    tourism; economic impacts; special events;

    JEL classification:

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

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