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

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Listed:
  • Christopher M. Clapp

    (Clemson University)

  • Jahn K. Hakes

    (Clemson University)

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.

Suggested Citation

  • Christopher M. Clapp & Jahn K. Hakes, 2005. "How Long a Honeymoon? The Effect of New Stadiums on Attendance in Major League Baseball," Journal of Sports Economics, , vol. 6(3), pages 237-263, August.
    • Handle: RePEc:sae:jospec:v:6:y:2005:i:3:p:237-263
    DOI: 10.1177/1527002504265957
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    References listed on IDEAS

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    Cited by:

    1. James W. Meehan Jr. & Randy A. Nelson & Thomas V. Richardson, 2007. "Competitive Balance and Game Attendance in Major League Baseball," Journal of Sports Economics, , vol. 8(6), pages 563-580, December.
    2. Russell Ormiston, 2014. "Attendance Effects of Star Pitchers in Major League Baseball," Journal of Sports Economics, , vol. 15(4), pages 338-364, August.
    3. Michael A. Leeds & Sumi Sakata, 2012. "Take Me Out to the Yakyushiai," Journal of Sports Economics, , vol. 13(1), pages 34-52, February.
    4. Elise M. Beckman & Wenqiang Cai & Rebecca M. Esrock & Robert J. Lemke, 2012. "Explaining Game-to-Game Ticket Sales for Major League Baseball Games Over Time," Journal of Sports Economics, , vol. 13(5), pages 536-553, October.
    5. Mark Foley & Fred Smith, 2013. "The Rise (and Fall) of the Arena Football League," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 41(4), pages 439-450, December.
    6. 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.
    7. Young William A & Holland William S & Weckman Gary R, 2008. "Determining Hall of Fame Status for Major League Baseball Using an Artificial Neural Network," Journal of Quantitative Analysis in Sports, De Gruyter, vol. 4(4), pages 1-46, October.
    8. Luc Arrondel & Richard Duhautois, 2022. "The Football World Cup: the good deal? [La Coupe du monde de football : la bonne affaire ?]," PSE-Ecole d'économie de Paris (Postprint) halshs-03936123, HAL.
    9. Gregory A. Falls & Paul A. Natke & Linlan Xiao, 2022. "College football attendance in the long run: The Football Championship Subdivision," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2172-2183, September.
    10. Nola Agha, 2013. "The Economic Impact of Stadiums and Teams," Journal of Sports Economics, , vol. 14(3), pages 227-252, June.
    11. Daniel A. Rascher & Matthew T. Brown & Mark S. Nagel & Chad D. McEvoy, 2012. "Financial Risk Management," Journal of Sports Economics, , vol. 13(4), pages 431-450, August.
    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. Todd Nesbit & Kerry King, 2010. "The Impact of Fantasy Football Participation on NFL Attendance," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 38(1), pages 95-108, March.
    14. John Charles Bradbury, 2019. "Determinants Of Revenue In Sports Leagues: An Empirical Assessment," Economic Inquiry, Western Economic Association International, vol. 57(1), pages 121-140, January.
    15. Duane W. Rockerbie & Stephen T. Easton, 2019. "Of Bricks and Bats: New Stadiums, Talent Supply, and Team Performance in Major League Baseball," Journal of Sports Economics, , vol. 20(1), pages 3-24, January.
    16. Todd M. Nesbit & Kerry A. King-Adzima, 2012. "Major League Baseball Attendance and the Role of Fantasy Baseball," Journal of Sports Economics, , vol. 13(5), pages 494-514, October.
    17. Dirk Semmelroth & Bernd Frick & Robert Simmons & Hojun Sung, 2022. "Where to Go Next? Examining the Effect of Franchise Expansion and Location on Game-Level Attendance in Major League Soccer," Journal of Sports Economics, , vol. 23(5), pages 524-547, June.
    18. Seth R. Gitter & Thomas A. Rhoads, 2014. "Stadium Construction And Minor League Baseball Attendance," Contemporary Economic Policy, Western Economic Association International, vol. 32(1), pages 144-154, January.
    19. Anna Bykova & Dennis Coates, 2022. "Professional team sporting success: do economic and personal freedom provide competitive advantages?," Economics of Governance, Springer, vol. 23(3), pages 323-358, December.
    20. Kevin E. Henrickson, 2012. "Spatial Competition And Strategic Firm Relocation," Economic Inquiry, Western Economic Association International, vol. 50(2), pages 364-379, April.
    21. Roberto Pedace, 2008. "Earnings, Performance, and Nationality Discrimination in a Highly Competitive Labor Market as An Analysis of the English Professional Soccer League," Journal of Sports Economics, , vol. 9(2), pages 115-140, April.
    22. Rockerbie, Duane & Easton, Stephen, 2019. "A Real Options Approach to Multi-Year Contracts in Professional Sports," MPRA Paper 93062, University Library of Munich, Germany.
    23. Jahn K. Hakes & Chad Turner, 2008. "Long-Term Contracts in Major League Baseball," Working Papers 0831, International Association of Sports Economists;North American Association of Sports Economists.

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