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The Myth of Sports-Led Economic Development

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  • Brad R. Humphreys

    (West Virginia University, College of Business and Economics)

Abstract

Public subsidization of professional sports facilities has been prevalent for the past 40 years in the United States. These subsidies are allegedly justified by economic benefits owing from sports facilities, including the creation of new jobs, new tax revenues and higher income. Recent research suggests that cities have not benefited economically from the boom in professional stadium and arena construction; cities that built new sports facilities over the period 1969-1997 have experienced lower inflation adjusted income per person than those where no new facilities were built. This research calls into question the justification for public subsidization of professional sports facilities.

Suggested Citation

  • Brad R. Humphreys, 2014. "The Myth of Sports-Led Economic Development," Working Papers 14-39, Department of Economics, West Virginia University.
    • Handle: RePEc:wvu:wpaper:14-39
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    File URL: http://busecon.wvu.edu/phd_economics/pdf/14-39.pdf
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    Cited by:

    1. 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.

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