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Taxpayer Subsidies for Major Sporting Events

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  • Mules, Trevor

Abstract

Promoters of major sporting events in Australia have been successful at persuading governments to provide taxpayers' funds to cover the costs of staging such events. Until recently, the justification for such use of taxpayers' money has been in terms of the potential of the events to attract visitors and their associated expenditure. However, this has led to bidding wars between state governments in which the nation is the loser due to high payments to overseas event owners. Increasing attention is being focussed on the issue of returns to taxpayers/government for their outlays. This paper concludes that major sporting events do not appear to generate sufficient extra tax revenue to justify the expenditure of taxpayers' funds. It goes on to suggest that if the tourism industry is the major beneficiary of hosting such events, then more emphasis should be placed upon finding ways in which the costs are borne by the industry.

Suggested Citation

  • Mules, Trevor, 1998. "Taxpayer Subsidies for Major Sporting Events," Sport Management Review, Elsevier, vol. 1(1), pages 25-43, November.
    • Handle: RePEc:eee:spomar:v:1:y:1998:i:1:p:25-43
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    Cited by:

    1. Rolfe, John, 2019. "Simple economic frameworks to evaluate public investments in sporting events in regional Australia," Economic Analysis and Policy, Elsevier, vol. 63(C), pages 35-43.
    2. Ozan GULER & Gürkan AKDAĞ & Ali DALGIÇ & Sercan BENLİ & A. Celil ÇAKICI, 2015. "How Locals Regard Sport Events In Terms Of Tourism Development? A Research On Xvii Mediterranean Games In Mersin With In The Frame Of Altruistic Surplus Phenomenon," Revista de turism - studii si cercetari in turism / Journal of tourism - studies and research in tourism, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 20(20), pages 1-8, December.
    3. Stefan Szymanski & Bastien Drut, 2020. "The Private Benefit of Public Funding: The FIFA World Cup, UEFA European Championship, and Attendance at Host Country League Soccer," Journal of Sports Economics, , vol. 21(7), pages 723-745, October.
    4. Heffernan, Jackie & O'Brien, Danny, 2010. "Stakeholder influence strategies in bidding for a professional sport franchise license," Sport Management Review, Elsevier, vol. 13(3), pages 255-268, August.
    5. Massiani, Jérôme, 2015. "How much will this event benefit our economy? A checklist for Economic Impact Assessment and application to Milan 2015 International Exhibition," MPRA Paper 68976, University Library of Munich, Germany, revised Oct 2015.
    6. Petri Lintumäki & Hannes Winner & Sabrina Scheiber & Anna Mederle & Martin Schnitzer, 2020. "The Economic Impact of Participant Sports Events: A Case Study for the Winter World Masters Games 2020 in Tyrol, Austria," Economies, MDPI, vol. 8(4), pages 1-23, November.
    7. Christopher Hautbois & Milena M. Parent & Benoît Séguin, 2012. "How to win a bid for major sporting events? A stakeholder analysis of the 2018 Olympic Winter Games French bid," Post-Print hal-03550776, HAL.
    8. 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.

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