Hosting Mega-Sporting Events: Which Decision-Making Rule?

Eric Barget () and Jean-Jacques Gougout ()
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Eric Barget: Limoges University
Jean-Jacques Gougout: Limoges University

International Journal of Sport Finance, 2010, vol. 5, issue 2, 141-162

Abstract: An economic impact assessment alone cannot justify public support for hosting mega-sporting events. A cost-benefit analysis in order to measure the net social utility for the population is also relevant. Nevertheless, if there is always a high demand of economic impact studies by public authorities before hosting an event, the cost-benefit studies are never made, so there is a high risk to make decisions that are not rational. In this paper, to take into account simultaneously the economic impact and the social utility of mega-sporting events, we propose a legitimacy test we illustrate with the example of the Rugby World Cup 2007 in France.

Keywords: regional development; mega-events; Rugby World Cup; economic impact; welfare economics; cost-benefit analysis; legitimacy test (search for similar items in EconPapers)
JEL-codes: L83 (search for similar items in EconPapers)
Date: 2010
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International Journal of Sport Finance is currently edited by Arne Feddersen, Babatunde Buraimo, Joachim Prinz and Jane Ruseski

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