How Long a Honeymoon? The Effect of New Stadiums on Attendance in Major League Baseball

Abstract

Using panel data of MLB team attendance from 1950 to 2002, we determined that the attendance “honeymoon” effect of a new stadium'after separating quality-of-play effects'increases attendance by 32% to 37% the opening year of a new stadium. Attendance remains above baseline levels for only two seasons for multipurpose stadiums built during 1960 to 1974 but for 6 to 10 seasons at newer ballparks. Contrary to expectations, there is no systematic interaction between new venues and team performance on attendance or stadium revenues. This noncomplementarity implies that a profit-maximizing team owner would not use a new stadium's revenue stream to increase team quality of play. © 2005, Sage Publications. All rights reserved.