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Professional Sports Facilities, Franchises and Urban Economic Development

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  • Dennis Coates

    ()

  • Brad R. Humphreys

    ()

Abstract

Local political and community leaders and the owners of professional sports teams frequently claim that professional sports facilities and franchises are important engines of economic development in urban areas. These structures and teams allegedly contribute millions of dollars of net new spending annually and create hundreds of new jobs, and provide justification for hundreds of millions of dollars of public subsidies for the construction of many new professional sports facilities in the United Sates over the past decade. Despite these claims, economists have found no evidence of positive economic impact of professional sports teams and facilities on urban economies. We critically review the debate on the economic effects of professional sports and their role as an engine of urban economic redevelopment, with an emphasis on recent economic research.

Suggested Citation

  • Dennis Coates & Brad R. Humphreys, 2003. "Professional Sports Facilities, Franchises and Urban Economic Development," UMBC Economics Department Working Papers 03-103, UMBC Department of Economics.
  • Handle: RePEc:umb:econwp:03103
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    File URL: http://www.umbc.edu/economics/wpapers/wp_03_103.pdf
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    References listed on IDEAS

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    1. Carlino, Gerald & Coulson, N. Edward, 2004. "Compensating differentials and the social benefits of the NFL," Journal of Urban Economics, Elsevier, vol. 56(1), pages 25-50, July.
    2. Berument, Hakan & Yucel, Eray M., 2005. "Long live Fenerbahce: The production boosting effects of football," Journal of Economic Psychology, Elsevier, vol. 26(6), pages 842-861, December.
    3. Bruce K. Johnson & Peter A. Groothuis & John C. Whitehead, 2000. "“The Value of Public Goods Generated by a Major League Sports Team: The CVM Approach,”," Working Papers 0014, East Carolina University, Department of Economics.
    4. John J. Siegfried & Andrew Zimbalist, 2000. "The Economics of Sports Facilities and Their Communities," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 95-114, Summer.
    5. Bruce K. Johnson & Peter A. Groothuis & John C. Whitehead, 2001. "The Value of Public Goods Generated by a Major League Sports Team," Journal of Sports Economics, , vol. 2(1), pages 6-21, February.
    6. 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.
    7. BK. Johnson & JC. Whitehead, 2000. "Value of public goods from sports stadiums: the CVM approach," Contemporary Economic Policy, Western Economic Association International, vol. 18(1), pages 48-58, January.
    8. 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.
    9. 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.
    10. Quigley, John M. & Smolensky, Eugene, 1997. "Stickball in San Francisco," Berkeley Program on Housing and Urban Policy, Working Paper Series qt3rw313m3, Berkeley Program on Housing and Urban Policy.
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    Citations

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    Cited by:

    1. Florian Hagn & Wolfgang Maennig, 2007. "Labour Market Effects of the 2006 Soccer World Cup in Germany," Working Papers 0716, International Association of Sports Economists;North American Association of Sports Economists.
    2. Hagn, Florian & Maennig, Wolfgang, 2008. "Employment effects of the Football World Cup 1974 in Germany," Labour Economics, Elsevier, vol. 15(5), pages 1062-1075, October.
    3. Stephanie Jasmand & Wolfgang Maennig, 2007. "Regional Income and Employment Effects of the 1972 Munich Olympic Summer Games," Working Papers 007, Chair for Economic Policy, University of Hamburg.
    4. Feddersen, Arne & Maennig, Wolfgang, 2012. "Sectoral labour market effects of the 2006 FIFA World Cup," Labour Economics, Elsevier, vol. 19(6), pages 860-869.
    5. Stephan Gundel & Achim Hecker, 2006. "Funding and operation of stadiums and arenas beside high-class leagues," Working Papers 0604, International Association of Sports Economists;North American Association of Sports Economists.
    6. Wolfgang Maennig & Florian Schwarthoff, 2006. "Stadium Architecture and regional economic development: International experience and the plans of Durban," Working Papers 200604, Chair for Economic Policy, University of Hamburg.
    7. Bruce K. Johnson & John C. Whitehead & Daniel S. Mason & Gordon J. Walker, 2007. "Willingness To Pay For Amateur Sport And Recreation Programs," Contemporary Economic Policy, Western Economic Association International, vol. 25(4), pages 553-564, October.
    8. Bernd Süssmuth & Malte Heyne & Wolfgang Maennig, 2010. "Induced Civic Pride and Integration," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 72(2), pages 202-220, April.
    9. Gabriel M. Ahlfeldt, 2010. "Architektur, Ökonomie - Architekturökonomie," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 11(4), pages 340-355, November.
    10. Kim, Woosoon & Walker, Matthew, 2012. "Measuring the social impacts associated with Super Bowl XLIII: Preliminary development of a psychic income scale," Sport Management Review, Elsevier, vol. 15(1), pages 91-108.
    11. 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.
    12. Leonor Gallardo & Pablo Burillo & Marta García-Tascón & Juan Salinero, 2009. "The Ranking of the Regions With Regard to Their Sports Facilities to Improve Their Planning in Sport: The Case of Spain," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 94(2), pages 297-317, November.

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