Prosperity or Blight? A Question of Major League Stadia Locations

Arthur C. Nelson
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Arthur C. Nelson: Georgia Institute of Technology

Economic Development Quarterly, 2001, vol. 15, issue 3, 255-265

Abstract: Literature challenges the economic wisdom of major league sports stadia, especially when subsidized, but they continue to be constructed. If officials decide that a new stadium will be built, does it matter where it goes? This article theorizes that when major league stadia locate in the central business district (CBD), the metropolitan statistical area’s share of regional wealth increases and that share rises as more major league teams play there. The reason is that people attending games in the CBD are more likely to spend money before and after games in the CBD than if they attend games at non-CBD locations. By contrast, non-CBD stadia may create opportunity costs. The moat of parking that surrounds many such stadia may discourage development from locating nearby. Investments that could have generated more economic activity are diverted, sometimes outside the metropolitan area. Empirical evaluation supports theoretical expectations.

Date: 2001
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Persistent link: https://EconPapers.repec.org/RePEc:sae:ecdequ:v:15:y:2001:i:3:p:255-265

DOI: 10.1177/089124240101500305

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