Some Supplementary Regional Economic Effects of a Premier League Soccer Club: Theoretical and empirical Considerations beyond Regional Multiplier Analysis

Rudiger Hamm ()
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Rudiger Hamm: Niederrhein University of Applied Sciences

Regional Science Inquiry, 2010, vol. II, issue 1, 53-62

Abstract: Using a well-known German soccer club – Borussia Monchengladbach – as an example the present article deals with some supplemaentary regional economic effects of soccer clubs. Theoretical considerations suggest that such effects appear, because soccer clubs can raise a city’s awareness level and improve its image, can be a relevant location factor by itself and can result in a “psychic income” accruing to the inhabitants of the city. All these effects are not only of direct interest for regional economic development, but they can indirectly increase the number of firms settling in the region and/or the level of regional tourism. These theoretical considerations are empirically tested by different methodological approaches – survey of households, survey of experts and media presence analysis. The empirical analysis shows that Borussia Monchengladbach releases an impulse to its location city that noticeably exceeds “normal” demand-side effects. This impulse is connected with the mentioned theoretical aspects. Though all attempts to quantifiy the supplementary effects can only give a rough impression of its true dimension of these effects, it can be stated that the supplementary effects of a sports club (or a major sporting event) are at least as important as demand-side effects normally are are.

Keywords: Regional Multiplier Analysis; Premier League Soccer Club; Borussia Monchengladbach; soccer clubs (search for similar items in EconPapers)
JEL-codes: C21 O18 R11 (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:hrs:journl:v:ii:y:2010:i:1:p:53-62

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