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The Economics of Sports Facilities and Their Communities

The Economics of Sports Facilities and Their Communities Abstract Since the 1950s, taxpayers have been the primary investors in stadia built for the use of privately-owned professional sports teams. Team owners have argued that sports facilities boost local economic activity; however, economic reasoning and empirical evidence suggest the opposite. Public support for stadia is also driven by demand for community image, and owners of sports teams supply a scarce input into image enhancement--participation in the major league--for which they have been able to extract monopoly rents from dispersed taxpayers. We suggest reforms to dissipate the monopoly sports leagues exercise when negotiating with host communities for their teams. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Economic Perspectives American Economic Association

The Economics of Sports Facilities and Their Communities

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Publisher
American Economic Association
Copyright
Copyright © 2000 by the American Economic Association
Subject
Symposia
ISSN
0895-3309
DOI
10.1257/jep.14.3.95
Publisher site
See Article on Publisher Site

Abstract

Abstract Since the 1950s, taxpayers have been the primary investors in stadia built for the use of privately-owned professional sports teams. Team owners have argued that sports facilities boost local economic activity; however, economic reasoning and empirical evidence suggest the opposite. Public support for stadia is also driven by demand for community image, and owners of sports teams supply a scarce input into image enhancement--participation in the major league--for which they have been able to extract monopoly rents from dispersed taxpayers. We suggest reforms to dissipate the monopoly sports leagues exercise when negotiating with host communities for their teams.

Journal

Journal of Economic PerspectivesAmerican Economic Association

Published: Aug 1, 2000

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