Nola Agha and Marijke Taks

In response to the increasing debate on the relative worth of small events compared to large events, we create a theoretical model to determine whether smaller events are more likely to create positive economic impact. First, event size and city size are redefined as continuums of resources. The concepts of event resource demand (ERD) and city resource supply (CRS) are introduced, allowing for a joint analysis of supply and demand. When local economic conditions are brought into the analysis, the framework determines how a city resource deficiency or surplus affects the economic impact of...Read more

Steven Cobb
Douglas J. Olberding

This paper provides empirical support for the Alchian and Allen “shipping the good apples out” hypothesis. The hypothesis version tested here involves estimating the effect of travel cost on the quality of a weekend trip to Cincinnati, where travel cost is measured by time spent in travel and visit quality is measured by the amount of discretionary spending associated with the trip. Using linear regression analysis on data from race participants in the 2008 Flying Pig marathon and half marathon races, strong and robust evidence is found to support the validity of this hypothesis....Read more

Eric Barget
Jean-Jacques Gougout

An economic impact assessment alone cannot justify public support for hosting mega-sporting events. A cost-benefit analysis in order to measure the net social utility for the population is also relevant. Nevertheless, if there is always a high demand of economic impact studies by public authorities before hosting an event, the cost-benefit studies are never made, so there is a high risk to make decisions that are not rational. In this paper, to take into account simultaneously the economic impact and the social utility of mega-sporting events, we propose a legitimacy test we illustrate...Read more

Victor A. Matheson

Critics of economic impact studies that purport to show that mega-events such as the Olympics bring large benefits to the communities “lucky” enough to host them frequently cite the use of inappropriate multipliers as a primary reason why these impact studies overstate the true economic gains to the hosts of these events. This brief paper shows in a numerical example one way in which mega-events may lead to inflated multipliers and exaggerated claims of economic benefits.Read more

John Jasina
Kurt Rotthoff

Stadium boosters have long used the promise of economic development as a means to gain public support for financing local sports teams. Past research has shown little or no impact on employment or income when viewed at the MSA level. This paper expands the current literature on the economic impact of professional sports franchises. Following Coates and Humphreys (2003), we look at employment and wages at the county level using detailed SIC and NAICS industry codes. We find mixed results on employment within a county but find a negative effect on the payrolls within specific industries.Read more

Dennis Coates
David Gearhart

This paper looks for evidence that either a NASCAR track or NASCAR-sanctioned event influences the monthly rents on residential units. The evidence is mixed, varying with the treatment of housing units located in or out of central cities of standard metropolitan statistical areas (SMSAs), as well as the manner in which missing housing and community characteristics are treated in the analysis. The results are reasonably clear that the presence of a track by itself has little effect, especially on housing units outside the central city of an SMSA. Specific types of races largely appear to...Read more

Nathan Tomasini

The purpose of the current paper is to help improve our understanding of why people donate money to athletic support groups, which motivations are most prevalent among donors, and how motivations differ across three schools. Four thousand one hundred and thirty-seven responses (from 1,579 athletic support group donors at three universities) to an open-ended question about donor motivation were content analyzed. Results suggest that primary motives include supporting and improving the athletic program, receiving tickets, helping student-athletes, deriving entertainment and enjoyment,...Read more

Matthew Brown
Mark Nagel
Chad McEvoy
Daniel Rascher

The opening of the Palace of Auburn Hills, the SkyDome, and Oriole Park at Camden Yards led to the beginning of a construction boom in professional sport. In the National Football League (NFL) alone, 26 stadiums have been built or renovated in the past 10 years. Due to the additional revenue generated by these facilities and the NFL’s current revenue sharing system, professional football franchises are building new stadia for economic reasons rather than to replace unusable or unsafe facilities. The purpose of this study was to determine if a significant difference in net revenue change...Read more

Matthew J. Bernthal
Thomas H. Regan

Economic impact analysis is an important tool for sport and entertainment marketers in the promotion of their event and for host community leaders in developing their economy and promoting tourism.Read more

Matthew Brown
Mark Nagel
Chad McEvoy
Daniel Rascher

The opening of the Palace of Auburn Hills, the SkyDome, and Oriole Park at Camden Yards led to the beginning of a construction boom in professional sport. In the National Football League (NFL) alone, 26 stadiums have been built or renovated in the past 10 years. Due to the additional revenue generated by these facilities and the NFL’s current revenue sharing system, professional football franchises are building new stadia for economic reasons rather than to replace unusable or unsafe facilities. The purpose of this study was to determine if a significant difference in net revenue change...Read more