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Articles 1 - 28 of 28
Full-Text Articles in Social and Behavioral Sciences
Professional Sports, Hurricane Katrina, And The Economic Redevelopment Of New Orleans: Revisited, Victor Matheson, Robert Baade, Callan Henderschott
Professional Sports, Hurricane Katrina, And The Economic Redevelopment Of New Orleans: Revisited, Victor Matheson, Robert Baade, Callan Henderschott
Economics Department Working Papers
Hurricane Katrina devastated the city of New Orleans in late August 2005, resulting in damage to much of the city’s sports infrastructure and the temporary departure of both of New Orleans’ major league professional sports teams, the National Football League Saints and the National Basketball Association Hornets. The city spent over $500 million restoring the sports infrastructure in New Orleans, and both teams subsequently returned to the city. In addition, New Orleans has since hosted numerous mega-sporting events including the Super Bowl, NCAA Men’s Basketball Final Four, and several college football national championships. This paper examines the economic impact of …
The Rise And Fall (And Rise And Fall) Of The Olympic Games As An Economic Driver, Victor Matheson
The Rise And Fall (And Rise And Fall) Of The Olympic Games As An Economic Driver, Victor Matheson
Economics Department Working Papers
This paper traces the economic history of major sporting events focusing on the Olympics. Historically, the Olympic Games as well as other major sporting events have been considered costly events that place a burden on host cities. Only in relatively recent years, coinciding with the massive increases in the cost of hosting these events, have event organizers begun to claim that these events bring with them large economic benefits.
Point/Counterpoint: Is There A Case For Subsidizing Sports Stadiums?, Victor Matheson
Point/Counterpoint: Is There A Case For Subsidizing Sports Stadiums?, Victor Matheson
Economics Department Working Papers
In recent decades, governments have committed enormous public resources to subsidize construction of new stadiums, and the dollar value of taxpayer contributions for these subsidies continues to climb. Spending of taxpayer dollars includes both direct subsidies from state and local governments, as well as indirect subsidies from the use of tax-exempt bonds to finance construction. In granting stadium subsidies, governments claim that the stadiums are a public good that attracts tourists and businesses, thereby generating increased spending and job creation—benefits that flow to the community rather than to team owners. But do such benefits exist, and are they large enough …
Corruption In The Bidding, Construction, And Organization Of Mega-Events: An Analysis Of The Olympics And World Cup, Victor Matheson, Daniel Schwab, Patrick Koval
Corruption In The Bidding, Construction, And Organization Of Mega-Events: An Analysis Of The Olympics And World Cup, Victor Matheson, Daniel Schwab, Patrick Koval
Economics Department Working Papers
In the processes required to host a sports mega-event, corruption has been prevalent on numerous occasions, leading to unnecessary costs becoming the ultimate responsibility of a host government’s taxpayers. Little progress has been made in the prevention of such behavior. In this chapter, we examine the history of corruption in sports mega-events, namely the Olympics and World Cup, to identify parts of the bidding and preparation processes that are vulnerable to illicit behavior. We propose potential solutions to be implemented at various levels in order to prevent further corruption.
Hidden Subsidies And The Public Ownership Of Sports Facilities: The Case Of Levi’S Stadium In Santa Clara, Robert Baumann, Victor Matheson, Debra O'Connor
Hidden Subsidies And The Public Ownership Of Sports Facilities: The Case Of Levi’S Stadium In Santa Clara, Robert Baumann, Victor Matheson, Debra O'Connor
Economics Department Working Papers
Levi’s Stadium in Santa Clara, California is an example of a private financing / public ownership arrangement. While the stadium’s construction resulted in no direct tax increases, this ownership arrangement allows the San Francisco 49ers to avoid many types of taxes on the income generated from Levi’s Stadium. We estimate the total tax savings to the 49ers at between $106 and $213 million over the first 20 years of Levi’s Stadium compared with a privately financed and owned option. We argue that tax savings inherent in private financing / public ownership arrangements represent indirect and hidden subsidies.
Mega-Events And Tourism: The Case Of Brazil, Robert Baumann, Victor Matheson
Mega-Events And Tourism: The Case Of Brazil, Robert Baumann, Victor Matheson
Economics Department Working Papers
Mega-sporting events such as the FIFA World Cup are expensive affairs. Host countries often justify the spending required to stage these events by predicting that mega-events will draw large numbers of tourists. This paper analyzes monthly foreign tourist arrivals into Brazil between 2003 and 2015 and finds that the 2014 FIFA World Cup increased foreign tourism by roughly one million visitors. This number far exceeded expectations, but we show that roughly a quarter of this increase in foreign tourism was caused by the fortuitous advancement of Argentina’s national team, and potential hosts should not count on the event to consistently …
Going For The Gold: The Economics Of The Olympics, Victor Matheson, Robert Baade
Going For The Gold: The Economics Of The Olympics, Victor Matheson, Robert Baade
Economics Department Working Papers
In this paper, we explore the costs and benefits of hosting the Olympic Games. On the cost side, there are three major categories: general infrastructure such as transportation and housing to accommodate athletes and fans; specific sports infrastructure required for competition venues; and operational costs, including general administration as well as the opening and closing ceremony and security. Three major categories of benefits also exist: the short-run benefits of tourist spending during the Games; the long-run benefits or the "Olympic legacy" which might include improvements in infrastructure and increased trade, foreign investment, or tourism after the Games; and intangible benefits …
An Analysis Of Drivers Of Mega-Events In Emerging Economies, Robert Baade, Victor Matheson
An Analysis Of Drivers Of Mega-Events In Emerging Economies, Robert Baade, Victor Matheson
Economics Department Working Papers
Developing countries that host mega-events such as the Olympic Games and World Cup invest enormous sums in stadiums and collateral infrastructure projects. The paper examines the motivations of countries to host these events and the typical economic outcome for those host sites lucky(?) enough be awarded the games. For both efficiency and equity reasons, these events are risk propositions at best, and they generally represent an even worse investment for developing countries than for industrialized nations.
Many Happy Returns? The Pro-Bowl, Mega-Events, And Tourism In Hawaii, Robert Baumann, Victor Matheson
Many Happy Returns? The Pro-Bowl, Mega-Events, And Tourism In Hawaii, Robert Baumann, Victor Matheson
Economics Department Working Papers
We use daily airplane arrival data from 2004 to 2015 from Hawaii’s Department of Business, Economic Development, and Tourism to determine the net change in arrivals around a variety of sporting events. We find only one event generates a positive and significant net impact on arrivals: the Honolulu Marathon, which generates roughly 3,900 additional arrivals. No other sporting events result in a measurable increase in tourist arrivals including, notably, the NFL’s Pro Bowl, which receives a large subsidy from the state’s tourism authority.
Assessing The Infrastructure Impact Of Mega-Events In Emerging Economies, Victor Matheson
Assessing The Infrastructure Impact Of Mega-Events In Emerging Economies, Victor Matheson
Economics Department Working Papers
Developing countries that host mega-events such as the Olympic Games and World Cup invest enormous sums in stadiums and collateral infrastructure projects. The rapid investment in long-lasting physical stocks raises questions of equity and efficiency for national taxpayers and event attendees. This paper reviews several cases of historical and recent mega-events to assess the infrastructure costs, returns on infrastructure investments, and impacts of the events on urban development patterns. It will highlight cases where mega-event investments contributed to long-term economic growth.
An Evaluation Of The Economic Impact Of National Football League Mega-Events, Robert Baade, Victor Matheson
An Evaluation Of The Economic Impact Of National Football League Mega-Events, Robert Baade, Victor Matheson
Economics Department Working Papers
This paper evaluates the magnitude and the economic impact of NFL mega-events including the Pro Bowl and Super Bowl. The paper also reviews the theory behind the usual findings that the observed economic benefits of mega-events are almost always a fraction of the benefits claimed a priori.
Financing Professional Sports Facilities, Robert A. Baade, Victor Matheson
Financing Professional Sports Facilities, Robert A. Baade, Victor Matheson
Economics Department Working Papers
This paper examines public financing of professional sports facilities with a focus on both early and recent developments in taxpayer subsidization of spectator sports. The paper explores both the magnitude and the sources of public funding for professional sports facilities.
The Bottom Line: Accounting For Revenues And Expenditures In Intercollegiate Athletics, Victor Matheson, Debra J. O'Connor, Joseph H. Herberger
The Bottom Line: Accounting For Revenues And Expenditures In Intercollegiate Athletics, Victor Matheson, Debra J. O'Connor, Joseph H. Herberger
Economics Department Working Papers
This paper examines the profitability of Division I athletic programs at colleges and universities in the United States under a variety of accounting definitions of profit. The data identify several broad themes. First, a majority of athletic departments rely heavily on direct and indirect subsidization of their programs by the student body, the institution itself, and state governments in order to balance their books. Without such funding, less than a third of BCS athletic departments and no non-BCS departments are in the black. Second, athletic programs rely heavily on contributions to balance their books. Donations to athletic departments may serve …
Economics Of The Super Bowl, Victor Matheson
Economics Of The Super Bowl, Victor Matheson
Economics Department Working Papers
The Super Bowl is America’s premier sporting event. This paper details basic economic facts about the game as examines the controversy surrounding the purported economic impact of the game on host communities. While the league and sports boosters claim that the game brings up to a $500 million economic impact to host cities, a review of the literature suggests that the true economic impact is a fraction of this amount.
Anomalies In Tournament Design: The Madness Of March Madness, Robert Baumann, Victor Matheson, Cara Howe
Anomalies In Tournament Design: The Madness Of March Madness, Robert Baumann, Victor Matheson, Cara Howe
Economics Department Working Papers
Tournament design is of crucial importance in competitive sports. The primary goal of effective tournament design is to provide incentives for the participants to maximize their performance both during the tournament and in the time period leading up to the tournament. In spectator sports, a secondary goal of tournament design is to also promote interesting match ups that generate fan interest. Seeded tournaments, in general, promote both goals. Teams or individuals with strong performances leading up to a tournament receive higher seeds which increase their chances of progressing further in the tournament. Furthermore, seeding ensures that the strongest teams or …
Pilots And Public Policy: Steering Through The Economic Ramifications, Brad R. Humphreys, Victor Matheson
Pilots And Public Policy: Steering Through The Economic Ramifications, Brad R. Humphreys, Victor Matheson
Economics Department Working Papers
A recent IRS ruling has allowed the new Yankees Stadium construction project to be financed by a tax exempt bond offering backed by payments in lieu of taxes (PILOTS). This decision appears to contradict the spirit of the Tax Reform Act of 1986. From an economic standpoint, the question is whether it is desirable to significantly expand the number of projects eligible for tax subsidies in exchange for a more direct connection between those receiving benefits from the projects and those paying the taxes, or should the state and municipal bond tax exemption narrowly extend only to true public works …
Slippery Slope? Assessing The Economic Impact Of The 2002 Winter Olympic Games In Salt Lake City, Utah, Robert Baade, Robert Baumann, Victor Matheson
Slippery Slope? Assessing The Economic Impact Of The 2002 Winter Olympic Games In Salt Lake City, Utah, Robert Baade, Robert Baumann, Victor Matheson
Economics Department Working Papers
This paper provides an empirical examination of the 2002 Winter Olympic Games in Salt Lake City, Utah. Our analysis of taxable sales in the counties in which Olympic events took place finds that some sectors such as hotels and restaurants prospered while other retailers such as general merchandisers and department stores suffered. Overall the gains in the hospitality industry are lower than the losses experienced by other sectors in the economy. Given the experience of Utah, potential Olympic hosts should exercise caution before proceeding down the slippery slope of bidding for this event.
Bowling In Hawaii: Examining The Effectiveness Of Sports-Based Tourism Strategies, Robert Baumann, Victor Matheson, Chihiro Muroi
Bowling In Hawaii: Examining The Effectiveness Of Sports-Based Tourism Strategies, Robert Baumann, Victor Matheson, Chihiro Muroi
Economics Department Working Papers
We use daily airplane arrival data from Hawaii’s Department of Business, Economic Development, and Tourism to determine the net change in tourism for a variety of sporting events. We find two events generate a positive and significant net impact on arrivals: Honolulu Marathon and Pro Bowl. We estimate that the Honolulu Marathon produces between 2,183 and 6,519 in net arrivals while the Pro Bowl attracts about 5,595 to 6,725 in net arrivals. At the upper end of our estimates, the Honolulu Marathon and the Pro Bowl attract a nearly identical number of visitors despite the fact that the HTA spends …
Sports And The Law: Using Court Cases To Teach Sports Economics, Victor Matheson
Sports And The Law: Using Court Cases To Teach Sports Economics, Victor Matheson
Economics Department Working Papers
The purpose of this paper is two-fold. First, it lays forth a rationale for the use of court cases in teaching a sports economics class. Second, it provides an overview of the most important cases related to sports economics. Court classes allow students to develop critical reading and reasoning skills while allowing the instructor to present readings outside the standard textbook that are accessible to most undergraduates. A sports economics course with a focus on legal issues also broadens the course to fit better within a liberal arts education rather than being a narrow speciality field.
Nfl Governance And The Fate Of The New Orleans Saints: Some Observations, Robert Baade, Victor Matheson
Nfl Governance And The Fate Of The New Orleans Saints: Some Observations, Robert Baade, Victor Matheson
Economics Department Working Papers
Prior to 2005, New Orleans had struggled to retain its NFL franchise. The Saints remained in the city, despite an outdated stadium and small media market, only through generous direct public subsidies to the team. Paradoxically, the devastation wrought by Hurricane Katrina in September 2005 actually improved the short-term viability of the franchise by spurring an outpouring of local support for the team and by making relocation of the Saints politically untenable for the league. The long-term outlook for the team, however, appears grim. Already a small market, New Orleans’ population and business community has declined considerably due to Katrina. …
Mega-Events: The Effect Of The World’S Biggest Sporting Events On Local, Regional, And National Economies, Victor Matheson
Mega-Events: The Effect Of The World’S Biggest Sporting Events On Local, Regional, And National Economies, Victor Matheson
Economics Department Working Papers
This paper provides an overview of the economics of sports mega-events as well as a review of the existing literature in the field. The paper describes why boosters’ ex ante estimates of the economic impact of large sporting events tend to exaggerate the net economic benefits of these events and surveys the results of a large number of ex post studies of exploring the true impact of mega-events.
The Economic Consequences Of Professional Sports Strikes And Lockouts: Revisited, Robert Baade, Robert Baumann, Victor Matheson
The Economic Consequences Of Professional Sports Strikes And Lockouts: Revisited, Robert Baade, Robert Baumann, Victor Matheson
Economics Department Working Papers
Professional sports franchises have used the lure of economic riches as an incentive for cities to construct new stadiums and arenas at considerable public expense. An analysis of taxable sales in Florida cities demonstrates that none of the 6 new franchises or 8 new stadiums and arenas in the state since 1980 have resulted in a statistically significant increase in taxable sales in the host metropolitan area. In addition, using the numerous work stoppages in professional sports as test cases, again no statistically significant effect on taxable sales is found from the sudden absence of professional sports due to strikes …
Can New Orleans Play Its Way Past Katrina? The Role Of Professional Sports In The Redevelopment Of New Orleans, Victor Matheson, Robert Baade
Can New Orleans Play Its Way Past Katrina? The Role Of Professional Sports In The Redevelopment Of New Orleans, Victor Matheson, Robert Baade
Economics Department Working Papers
Hurricane Katrina devastated the city of New Orleans in late August 2005, and debates are now underway across the country concerning strategies for reconstructing the City. A key to redevelopment involves encouraging former citizens and businesses to return. Both of New Orleans’s professional sports teams, the National Football League Saints and the National Basketball Association Hornets, have taken up residence in other cities, and the question of what the city should provide in the way of financial accommodation to encourage them to return should be considered in devising a reconstruction plan. Infrastructure to facilitate professional sports and mega-events constitutes a …
Have Public Finance Principles Been Shut Out In Financing New Sports Stadiums For The Nfl In The United States?, Victor Matheson, Robert Baade
Have Public Finance Principles Been Shut Out In Financing New Sports Stadiums For The Nfl In The United States?, Victor Matheson, Robert Baade
Economics Department Working Papers
Over the past 15 years, new stadiums in the National Football League have been built at an unprecedented rate, and most new facilities have utilized significant public funds. This paper looks at whether the methods used to finance these new facilities honored public finance principles regarding equity, efficiency, and transparency. An examination of the 20 NFL stadiums constructed or refurbished since 1992 reveals a trend towards more voter referendums and an increase reliance on taxation of visitors through hotel and rental car taxes. Although taxation of persons living outside one’s own metropolitan area is appealing, this paper suggests that the …
Selling The Big Game: Estimating The Economic Impact Of Mega-Events Through Taxable Sales, Robert Baade, Robert Baumann, Victor Matheson
Selling The Big Game: Estimating The Economic Impact Of Mega-Events Through Taxable Sales, Robert Baade, Robert Baumann, Victor Matheson
Economics Department Working Papers
Professional sports leagues, franchises, and civic boosters, have used the promise of an all star game or league championship as an incentive for host cities to construct new stadiums or arenas at considerable public expense. Past league-sponsored studies have estimated that Super Bowls, All-Star games and other sports mega-events increase economic activity by hundreds of millions of dollars in host cities. Our analysis fails to support these claims. Our detailed regression analysis of taxable sales in Florida over the period 1980 to 2004 reveals that on, average, mega-events ranging from the World Cup to the World Series have been associated …
Striking Out? The Economic Impact Of Major League Baseball Work Stoppages On Host, Victor Matheson, Robert Baade
Striking Out? The Economic Impact Of Major League Baseball Work Stoppages On Host, Victor Matheson, Robert Baade
Economics Department Working Papers
Major League Baseball teams have used the lure of economic riches as an incentive for cities to construct new stadiums at considerable public expense. Estimates of the economic impact of a MLB on host communities have typically been in the vicinity of $300 million. Our analysis suggest these numbers are wildly inflated. Using the baseball strikes of 1981, 1994, and 1995 as test cases, we find the net economic impact for a MLB team on a host city of $16.2 million under one model and $132.3 million under a second model.
The Paradox Of Championships: Be Careful What You Wish For, Sports Fans, Victor Matheson, Robert Baade
The Paradox Of Championships: Be Careful What You Wish For, Sports Fans, Victor Matheson, Robert Baade
Economics Department Working Papers
This paper examines issues related to the economic impact of sports championships on the local economy of host cities. While boosters frequently claim a large positive effect of such championships, a closer examination leads to the conclusion that the impact is likely much smaller than touted and may even be negative.
A Fall Classic? Assessing The Economic Impact Of The World Series, Victor Matheson, Robert Baade
A Fall Classic? Assessing The Economic Impact Of The World Series, Victor Matheson, Robert Baade
Economics Department Working Papers
An empirical analysis of the economic impact of the Major League Baseball’s postseason on host-city economies from 1972-2001 suggests that any economic benefits from the playoff are small or non-existent. An examination of 129 playoff series finds that any increase ineconomic growth as a result of the post-season is not statistically significantly different than zero and that a best guess of the economic impact is $6.8 million per home game. As a general method of economic development, public support of a baseball team’s attempt to reach the World Series should be seen as a gamble at best.