Benefits from a Baseball Franchise: An Alternative Methodology

John P. Blair
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John P. Blair: Wright State University

Economic Development Quarterly, 1992, vol. 6, issue 1, 91-95

Abstract: Rosentraub and Swindell presented a fiscal impact study of a minor league franchise in Fort Wayne, Indiana. They concluded that it would not be advisable for the city to provide a substantial subsidy to the franchise because the extra tax revenues generated by the team would be insufficient to justify the subsidy. Their conclusions rest on faulty methodology. The largest benefit from the franchise is the additional income that Fort Wayne residents would receive due to extra spending. These important benefits were treated as negligible in the Rosentraub and Swindell study. A benefit-cost approach provided a framework for a more complete accounting of the benefits to Fort Wayne residents. When all the benefits to local residents are considered, a larger subsidy could have been justified Had a larger subsidy induced the team to locate in Fort Wayne, citizen welfare could have been enhanced.

Date: 1992
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Persistent link: https://EconPapers.repec.org/RePEc:sae:ecdequ:v:6:y:1992:i:1:p:91-95

DOI: 10.1177/089124249200600108

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