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The value of having a first-tier football club in the municipality (even) when tangible benefits are absent

The value of having a first-tier football club in the municipality (even) when tangible benefits... The purpose of this paper is to examine citizens’ willingness to pay (WTP), in relation to having a professional first-tier football club in a medium-sized Danish municipality, when tangible economic benefits such as economic growth and/or inbound migration produced by these are absent.Design/methodology/approachUsing the contingent valuation method on survey respondents, the study examines factors affecting WTP using binary logistic regression and interval regression and further extrapolates the WTP from the sample to the municipal population.FindingsCitizens significantly value having a first-tier football club in their municipality even when tangible benefits are absent, although a large proportion of respondents stated to be against the municipality being financially involved in professional team sports clubs (PTSC). WTP is largely driven by interest in sports and the local football club. It is argued that the findings cannot be generalized across contexts.Research limitations/implicationsThere can be circumstances where public subsidy of PTSCs is beneficial to economic welfare. However, authorities should be careful in their evaluation of whether to subsidize PTSCs.Originality/valueThe study expands on existing research by informing respondents about the lack of tangible benefits produced by PTSCs, hereby focusing on WTP on an informed basis. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Sport, Business and Management: An International Journal Emerald Publishing

The value of having a first-tier football club in the municipality (even) when tangible benefits are absent

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Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
2042-678X
DOI
10.1108/sbm-08-2018-0055
Publisher site
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Abstract

The purpose of this paper is to examine citizens’ willingness to pay (WTP), in relation to having a professional first-tier football club in a medium-sized Danish municipality, when tangible economic benefits such as economic growth and/or inbound migration produced by these are absent.Design/methodology/approachUsing the contingent valuation method on survey respondents, the study examines factors affecting WTP using binary logistic regression and interval regression and further extrapolates the WTP from the sample to the municipal population.FindingsCitizens significantly value having a first-tier football club in their municipality even when tangible benefits are absent, although a large proportion of respondents stated to be against the municipality being financially involved in professional team sports clubs (PTSC). WTP is largely driven by interest in sports and the local football club. It is argued that the findings cannot be generalized across contexts.Research limitations/implicationsThere can be circumstances where public subsidy of PTSCs is beneficial to economic welfare. However, authorities should be careful in their evaluation of whether to subsidize PTSCs.Originality/valueThe study expands on existing research by informing respondents about the lack of tangible benefits produced by PTSCs, hereby focusing on WTP on an informed basis.

Journal

Sport, Business and Management: An International Journal – Emerald Publishing

Published: Jun 13, 2019

Keywords: Willingness to pay (WTP); Professional football; Contingent valuation method (CVM); Public subsidy

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