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

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  • Robert A. Baade
  • Robert Baumann
  • Victor A. Matheson

Abstract

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.

Suggested Citation

  • Robert A. Baade & Robert Baumann & Victor A. Matheson, 2008. "Selling the Game: Estimating the Economic Impact of Professional Sports through Taxable Sales," Southern Economic Journal, John Wiley & Sons, vol. 74(3), pages 794-810, January.
    • Handle: RePEc:wly:soecon:v:74:y:2008:i:3:p:794-810
    DOI: 10.1002/j.2325-8012.2008.tb00864.x
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    References listed on IDEAS

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    5. Victor Matheson & Robert Baade, 2005. "Striking Out? The Economic Impact of Major League Baseball Work Stoppages on Host Communities," Working Papers 0507, College of the Holy Cross, Department of Economics.
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    7. Dennis Coates & Brad R. Humphreys, 2002. "The Economic Impact of Postseason Play in Professional Sports," Journal of Sports Economics, , vol. 3(3), pages 291-299, August.
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    9. Dennis Coates & Brad R. Humphreys, 2001. "The Economic Consequences of Professional Sports Strikes and Lockouts," Southern Economic Journal, John Wiley & Sons, vol. 67(3), pages 737-747, January.
    10. Robert A. Baade & Robert Baumann & Victor Matheson, 2007. "Estimating the Economic Impact of Natural and Social Disasters, with an Application to Hurricane Katrina," Urban Studies, Urban Studies Journal Limited, vol. 44(11), pages 2061-2076, October.
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    2. Shoag, Daniel & Veuger, Stan, 2017. "Taking My Talents to South Beach (and Back)," Working Paper Series rwp17-019, Harvard University, John F. Kennedy School of Government.
    3. Clay Collins & Craig A. Depken & E. Frank Stephenson, 2022. "The Impact of Sporting and Cultural Events in a Heterogeneous Hotel Market: Evidence from Austin, TX," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 48(4), pages 518-547, October.
    4. Francisco Antonio García Márquez & María del Carmen Pérez Gónzález & Francisco Javier Maza Ávila, 2024. "El Gasto Público Y El Esfuerzo Empresarial En El Deporte Y Su Relación Con El Desarrollo Territorial: El Caso De Las Comunidades Autónomas Españolas," Revista de Estudios Regionales, Universidades Públicas de Andalucía, vol. 1, pages 157-191.
    5. 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).
    6. Browne, Jessica & Kim, Ayoung & Yun, Seong, 2022. "Regional Economic Impacts of Beach Closures by Environmental Threats: An Empirical Study of Mississippi Coastal Counties," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322405, Agricultural and Applied Economics Association.
    7. Dennis Coates & Craig A Depken, 2009. "The Impact of College Football Games on Local Sales Tax Revenue: Evidence from Four Cities in Texas," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 35(4), pages 531-547.
    8. Rui Du & Junfu Zhang, 2022. "Super bowl participation and the local economy: Evidence from the stock market," Growth and Change, Wiley Blackwell, vol. 53(4), pages 1513-1545, December.

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