Should the Construction of New Professional Sports Facilities Be Subsidized?

Humphreys, Brad R.

doi:10.1002/pam.22099

Cited by 50 publications

(32 citation statements)

References 24 publications

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“…This study also provides insight into the broader public dialogue about the merits of subsidies for sports facilities. The leading edge of sports economics research on facilities explores their social costs: pollution, crime, congestion, and their impacts (Humphreys, 2019). A key takeaway from this developing literature is that subsidizing sports creates distributional inequities.…”

Section: Discussionmentioning

confidence: 99%

Does Proximity to a New Sports Facility Affect Existing Businesses’ Survival Time?

Propheter

2020

Journal of Sports Economics

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Existing literature on the economic impact of sports facilities fails to consider whether new facilities positively affect existing businesses. To fill this gap, data on existing establishments in Sacramento, CA, active from 2004 through 2018 were collected. The outcome of interest is existing businesses’ survival time. Using an accelerated failure time model in a difference-in-difference framework, retail establishments within a half mile of the Golden 1 Center are found to have survival times 53% shorter than otherwise similar retail establishments further away. Models also reveal existing establishments in other industries complementary to sports are not affected by the arena.

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Section: Discussionmentioning

confidence: 99%

Does Proximity to a New Sports Facility Affect Existing Businesses’ Survival Time?

Propheter

2020

Journal of Sports Economics

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“…Significant work exists showing that sports venues do not positively impact economic growth in a city or region (see Coates and Humphreys, 2008;Humphreys, 2019). Still, the venue, its resident sports team and a surrounding entertainment district can be seen as a way to compete for talent with alternative locales.…”

Section: Public Finance Of Sports Venuesmentioning

confidence: 99%

Tax increment financing and major league venues

Sroka

2020

SBM

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PurposeThis article intends to shine a light on venue-related tax increment financing (TIF) through the first comprehensive inventory of its use at the major league level.Design/methodology/approachFor each 2018 venue in the five North American major leagues, data was collected on TIF contributions to direct venue capital costs as well as to projects using TIF to enable real estate development ancillary to a venue. Neighborhoods surrounding a venue were also assessed for the presence of a TIF district. With both the direct and ancillary elements, data was collected from government, industry, academic, mapping and media sources. A review of this data set and findings are followed by a discussion of implications and directions for future work.FindingsOver one-third of the TIF eligible permanent stadiums and arenas studied in the five major leagues have a direct or strong TIF connection. Direct TIF contributions to sports venues, as well as TIF use intended to generate real estate development around these venues, are most frequent and financially significant in arenas and soccer-specific stadiums. Additionally, arena and stadium projects using TIF often accompany ancillary real estate development.Originality/valueA primary purpose of this article is to provide a previously missing general reference resource to governments and citizens of jurisdictions considering facility TIF use on the scope, nature, extent and identity of TIF projects related to major league sports venues. More generally, the inventory and assessment of TIF use in professional sports venues offered by this article sets the stage for future research on associative relationships between TIF contributions and facility finance outcomes as well as the normative value of venue-related TIF.

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“…These costs are borne with the expectation that the positive externalities of the professional sport club will outweigh the costs. While the economic impact has been discussed as a major positive externality, previous studies have found little to no direct impact [5]. Cities should pay attention to new, positive externalities to justify the costs and negative externalities of hosting a professional sport club.…”

Section: Introductionmentioning

confidence: 98%

Positive Externalities from Professional Football Clubs in the Metropolitan Rhine-Ruhr, Germany: Trickle-Down Effects Associated with Promotion and Relegation

et al. 2020

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Hosting sport events is costly, but the positive impact of hosting sport events has not been studied well. We consider the promotion of physical activity, known as the trickle-down effect, to be a new dimension of this kind of impact. Using exogenous variations in promotion and relegation in the Bundesliga 1, we test the effect of the presence of a Bundesliga 1 club on local non-profit football club membership. Using German city-level annual non-profit sport club membership data from the metropolitan Rhine-Ruhr, we group cities with experience of either promotion or relegation as treatment cities and other cities as the comparison group. Difference-in-difference analyses show that promotion (using a strict definition of promotion) of local professional football clubs increases non-profit football club membership by 14% while relegation does not affect membership. The presence of Bundesliga 1 clubs in a city increases non-profit football club membership by 11%. Falsification tests support the idea that the impact of promotion on membership results in a net increase in membership.

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Should the Construction of New Professional Sports Facilities Be Subsidized?

Cited by 50 publications

References 24 publications

Does Proximity to a New Sports Facility Affect Existing Businesses’ Survival Time?

Does Proximity to a New Sports Facility Affect Existing Businesses’ Survival Time?

Tax increment financing and major league venues

Positive Externalities from Professional Football Clubs in the Metropolitan Rhine-Ruhr, Germany: Trickle-Down Effects Associated with Promotion and Relegation

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