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Do College Football Games Pay for Themselves? The Impact of College Football Games on Local Sales Tax Revenue

Author

Listed:
  • Dennis Coates

    (Department of Economics, University of Maryland, Baltimore County)

  • Craig A. Depken, II

    (Belk College of Business, University of North Carolina - Charlotte)

Abstract

This paper analyzes the net impacts of college football games on the sales tax revenues and taxable sales of four mid-sized cities in Texas. The paper addresses the question in the title, but also asks whether state policy makers might be justified in encouraging schools in their state to play one another based on the local economic impact those games will have. In general, our evidence suggests the answer to that question is no.

Suggested Citation

  • Dennis Coates & Craig A. Depken, II, 2008. "Do College Football Games Pay for Themselves? The Impact of College Football Games on Local Sales Tax Revenue," Working Papers 0802, International Association of Sports Economists;North American Association of Sports Economists.
    • Handle: RePEc:spe:wpaper:0802
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    File URL: http://web.holycross.edu/RePEc/spe/CoatesDepken_CollegeFootball.pdf
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    References listed on IDEAS

    as
    1. Victor A. Matheson, 2005. "Contrary Evidence on the Economic Effect of the Super Bowl on the Victorious City," Journal of Sports Economics, , vol. 6(4), pages 420-428, November.
    2. Robert Baade & Victor Matheson, 2004. "The Quest for the Cup: Assessing the Economic Impact of the World Cup," Regional Studies, Taylor & Francis Journals, vol. 38(4), pages 343-354.
    3. 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.
    4. Dennis Coates & Brad R. Humphreys, 1999. "The growth effects of sport franchises, stadia, and arenas," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 18(4), pages 601-624.
    5. Robert Baade & Robert Baumann & Victor Matheson, 2005. "Selling the Big Game: Estimating the Economic Impact of Mega-Events through Taxable Sales," Working Papers 0510, College of the Holy Cross, Department of Economics.
    6. Dennis Coates & Craig A. Depken, II, 2006. "Mega-Events: Is the Texas-Baylor game to Waco what the Super Bowl is to Houston?," Working Papers 0606, International Association of Sports Economists;North American Association of Sports Economists.
    7. Robert Baade & Robert Baumann & Victor Matheson, 2007. "Down, Set, Hike: The Economic Impact of College Football Games on Local Economies," Working Papers 0702, College of the Holy Cross, Department of Economics.
    8. 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.
    9. Im, Kyung So & Pesaran, M. Hashem & Shin, Yongcheol, 2003. "Testing for unit roots in heterogeneous panels," Journal of Econometrics, Elsevier, vol. 115(1), pages 53-74, July.
    10. Victor Matheson & Robert Baade, 2004. "Padding Required: Assessing the Economic Impact of the Super Bowl," Working Papers 0403, College of the Holy Cross, Department of Economics.
    11. Victor Matheson & Robert Baade, 2005. "A Fall Classic? Assessing the Economic Impact of the World Series," Working Papers 0501, College of the Holy Cross, Department of Economics.
    12. Robert Baade & Robert Baumann & Victor Matheson, 2006. "The Economic Consequences of Professional Sports Strikes and Lockouts: Revisited," Working Papers 0604, College of the Holy Cross, Department of Economics.
    13. 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.
    14. Robert A. Baade & Victor A. Matheson, 2001. "Home Run or Wild Pitch?," Journal of Sports Economics, , vol. 2(4), pages 307-327, November.
    15. Robert A. Baade & Robert W. Baumann & Victor A. Matheson, 2008. "Assessing the Economic Impact of College Football Games on Local Economies," Journal of Sports Economics, , vol. 9(6), pages 628-643, December.
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    Cited by:

    1. Malcolm Getz & John Siegfried, 2010. "What Does Intercollegiate Athletics Do To or For Colleges and Universities?," Vanderbilt University Department of Economics Working Papers 1005, Vanderbilt University Department of Economics.
    2. Daniel I. Rees & Kevin T. Schnepel, 2009. "College Football Games and Crime," Journal of Sports Economics, , vol. 10(1), pages 68-87, February.
    3. Tek B. Dangi & James F. Petrick, 2021. "Augmenting the Role of Tourism Governance in Addressing Destination Justice, Ethics, and Equity for Sustainable Community-Based Tourism," Tourism and Hospitality, MDPI, vol. 2(1), pages 1-28, January.
    4. Kyle J. Kain & Trevon D. Logan, 2014. "Are Sports Betting Markets Prediction Markets?," Journal of Sports Economics, , vol. 15(1), pages 45-63, February.

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    More about this item

    Keywords

    tourism; economic impacts; special events;
    All these keywords.

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • H27 - Public Economics - - Taxation, Subsidies, and Revenue - - - Other Sources of Revenue

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