An event study of the economic impact of professional sport teams on local incomes

Abstract

Many cities have tried to use expensive incentives such as a state-of-the-art stadiums or tax exemptions to persuade major professional sport teams to relocate to or remain in their area. These cities do so because they expect a professional sport team to enhance the local economy. Jn this paper we utilize an event study approach to examine the economic impact of a sport team on the local economy. The results indicate a negative impact of a sport team on local per capita income in both the short and long-run.