Selling the Game: Estimating the Economic Impact of Professional Sports through Taxable Sales

  • Baade R
  • Baumann R
  • Matheson V
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Sports leagues, franchises, and civic boosters tout the economic benefits of professional sports as an incentive for host cities to construct new stadiums or arenas at considerable public expense. Past league-sponsored studies have estimated that new stadiums, franchises, and mega-events such as the Super Bowl increase economic activity by potentially hundreds of millions of dollars in host cities. A detailed regression analysis of taxable sales in Florida over the period extending from 1980 to 2005 fails to support these claims. New stadiums, arenas, and franchises, as well as mega-events, appear to be as likely to reduce taxable sales as increase them. Similarly, strikes and lockouts in professional sports have not systematically lead to reductions in local taxable sales. ABSTRACT FROM AUTHOR]; Copyright of Southern Economic Journal is the property of Southern Economic Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Author-supplied keywords

  • ATHLETIC leagues
  • ECONOMIC development
  • ECONOMIC impact
  • FRANCHISES (Retail trade)
  • JEL Classirication
  • L83
  • PUBLIC spending
  • REGRESSION analysis
  • SUPER Bowl (Football game)

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  • R. A. Baade

  • R. Baumann

  • V. A. Matheson

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