IDEAS home Printed from https://ideas.repec.org/a/sae/ecdequ/v15y2001i3p255-265.html
   My bibliography  Save this article

Prosperity or Blight? A Question of Major League Stadia Locations

Author

Listed:
  • Arthur C. Nelson

    (Georgia Institute of Technology)

Abstract

Literature challenges the economic wisdom of major league sports stadia, especially when subsidized, but they continue to be constructed. If officials decide that a new stadium will be built, does it matter where it goes? This article theorizes that when major league stadia locate in the central business district (CBD), the metropolitan statistical area’s share of regional wealth increases and that share rises as more major league teams play there. The reason is that people attending games in the CBD are more likely to spend money before and after games in the CBD than if they attend games at non-CBD locations. By contrast, non-CBD stadia may create opportunity costs. The moat of parking that surrounds many such stadia may discourage development from locating nearby. Investments that could have generated more economic activity are diverted, sometimes outside the metropolitan area. Empirical evaluation supports theoretical expectations.

Suggested Citation

  • Arthur C. Nelson, 2001. "Prosperity or Blight? A Question of Major League Stadia Locations," Economic Development Quarterly, , vol. 15(3), pages 255-265, August.
    • Handle: RePEc:sae:ecdequ:v:15:y:2001:i:3:p:255-265
    DOI: 10.1177/089124240101500305
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/089124240101500305
    Download Restriction: no
    File URL: https://libkey.io/10.1177/089124240101500305?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Robert A. Baade & Richard F. Dye, 1988. "Sports Stadiums and Area Development: A Critical Review," Economic Development Quarterly, , vol. 2(3), pages 265-275, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Plessis Stan du & Maennig Wolfgang, 2010. "Ökonomische Wirkungen der Fußball-WM 2010: Eine erste Ex-post-Analyse," Review of Economics, De Gruyter, vol. 61(3), pages 262-278, December.
    2. Dennis Coates & Brad R. Humphreys, 2008. "Do Economists Reach a Conclusion on Subsidies for Sports Franchises, Stadiums, and Mega-Events?," Econ Journal Watch, Econ Journal Watch, vol. 5(3), pages 294-315, September.
    3. Herman L. Boschken, 2008. "A Multiple-perspectives Construct of the American Global City," Urban Studies, Urban Studies Journal Limited, vol. 45(1), pages 3-28, January.
    4. Agha, Nola & Rascher, Daniel, 2013. "When can economic impact be positive? Nine conditions that explain why smaller sports can have bigger impacts," MPRA Paper 48016, University Library of Munich, Germany.
    5. Dehring, Carolyn A. & Depken II, Craig A. & Ward, Michael R., 2008. "A direct test of the homevoter hypothesis," Journal of Urban Economics, Elsevier, vol. 64(1), pages 155-170, July.
    6. Mark S. Rosentraub, 2006. "The Local Context of a Sports Strategy for Economic Development," Economic Development Quarterly, , vol. 20(3), pages 278-291, August.
    7. Dennis Coates, 2007. "Stadiums And Arenas: Economic Development Or Economic Redistribution?," Contemporary Economic Policy, Western Economic Association International, vol. 25(4), pages 565-577, October.
    8. Deepak Premkumar & Austin Quackenbush & Georgeanne Artz & Peter Orazem, 2013. "If You Build it, Will They Come?: Fiscal Federalism, Local Provision of Public Tourist Amenities, and the Vision Iowa Fund," The Review of Regional Studies, Southern Regional Science Association, vol. 43(2,3), pages 155-173, Winter.
    9. Geoffrey Propheter, 2014. "Local Sales Tax Revenue Redistribution and Sports: The Case of Major League Soccer in Bridgeview," Public Budgeting & Finance, Wiley Blackwell, vol. 34(3), pages 73-91, September.
    10. Robert W. Wassmer, 2001. "Metropolitan Prosperity from Major League Sports in the CBD: Stadia Locations or Just Strength of the Central City? A Reply to Arthur C. Nelson," Economic Development Quarterly, , vol. 15(3), pages 266-271, August.
    11. Abbiasov, Timur & Sedov, Dmitry, 2023. "Do local businesses benefit from sports facilities? The case of major league sports stadiums and arenas," Regional Science and Urban Economics, Elsevier, vol. 98(C).
    12. WOLFGANG MAENNIG & STAN Du PLESSIS, 2007. "World Cup 2010: South African Economic Perspectives And Policy Challenges Informed By The Experience Of Germany 2006," Contemporary Economic Policy, Western Economic Association International, vol. 25(4), pages 578-590, October.
    13. Geoffrey Propheter, 2020. "Does Proximity to a New Sports Facility Affect Existing Businesses’ Survival Time?," Journal of Sports Economics, , vol. 21(5), pages 451-476, June.
    14. Sparvero, Emily & Chalip, Laurence, 2007. "Professional Teams as Leverageable Assets: Strategic Creation of Community Value," Sport Management Review, Elsevier, vol. 10(1), pages 1-30, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chad Seifried & Dave Shonk, 2007. "American Professional Sport Facilities: Considerations for the Future," Working Papers 0724, International Association of Sports Economists;North American Association of Sports Economists.
    2. Dennis Coates, 2007. "Stadiums And Arenas: Economic Development Or Economic Redistribution?," Contemporary Economic Policy, Western Economic Association International, vol. 25(4), pages 565-577, October.
    3. Storm, Rasmus K. & Thomsen, Frederik & Jakobsen, Tor Georg, 2017. "Do they make a difference? Professional team sports clubs’ effects on migration and local growth: Evidence from Denmark," Sport Management Review, Elsevier, vol. 20(3), pages 285-295.
    4. Dennis Coates & David Gearhart, 2008. "NASCAR as a Public Good," International Journal of Sport Finance, Fitness Information Technology, vol. 3(1), pages 41-57, February.
    5. Dennis Coates & Brad Humphreys, 2011. "The effect of professional sports on the earnings of individuals: evidence from microeconomic data," Applied Economics, Taylor & Francis Journals, vol. 43(29), pages 4449-4459.
    6. C C Williams, 1996. "Understanding the Role of Consumer Services in Local Economic Development: Some Evidence from the Fens," Environment and Planning A, , vol. 28(3), pages 555-571, March.
    7. Colin C. Williams, 1994. "Rethinking the Role of the Service Sector in Local Economic Revitalisation," Local Economy, London South Bank University, vol. 9(1), pages 73-82, May.
    8. Antoine Feuillet & Nicolas Scelles & Christophe Durand, 2017. "A winner’s curse in the bidding process for broadcasting rights in football? The cases of the French and UK markets," Post-Print hal-01935541, HAL.
    9. Christopher M. Law, 1992. "Urban Tourism and its Contribution to Economic Regeneration," Urban Studies, Urban Studies Journal Limited, vol. 29(3-4), pages 599-618, May.
    10. Chad Seifried & Dave Shonk, 2007. "American Professional Sport Facilities: Considerations for the Future," IASE Conference Papers 0718, International Association of Sports Economists.
    11. Coates, Dennis & Humphreys, Brad R., 2006. "Proximity benefits and voting on stadium and arena subsidies," Journal of Urban Economics, Elsevier, vol. 59(2), pages 285-299, March.
    12. Constantine Kontokosta, 2012. "The Price of Victory," Urban Studies, Urban Studies Journal Limited, vol. 49(5), pages 961-978, April.
    13. Michael B. Teitz, 1997. "American Planning in the 1990s: Part II, The Dilemma of the Cities," Urban Studies, Urban Studies Journal Limited, vol. 34(5-6), pages 775-795, May.
    14. Judith Grant Long, 2005. "Full Count," Journal of Sports Economics, , vol. 6(2), pages 119-143, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:ecdequ:v:15:y:2001:i:3:p:255-265. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.