The Economics of Sports Facilities and Their Communities

John Siegfried and Andrew Zimbalist

Journal of Economic Perspectives, 2000, vol. 14, issue 3, 95-114

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.

JEL-codes: L83 R53 (search for similar items in EconPapers)
Date: 2000
Note: DOI: 10.1257/jep.14.3.95
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Citations: View citations in EconPapers (158)

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