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Dr.
Craig A. Depken II Associate
Professor, Dept. of Economics
Excellence
in Teaching Innovation Award, 2002—College of Business
When: April 16, 2003: 12:15pm-1:15pm Where: Parlor on the 6th Floor of the Central Library Building.
The Library will provide complimentary finger sandwiches and soft drinks.
The Economics of Sports Arenas: A Property Rights Approach
The
standard approach in the economics of sports arenas focuses on the public
benefits of a publicly funded venue, including job creation, economic
growth, increased tourism and civic pride. However, academic studies
consistently show the public benefits of sports arenas may be greatly
overestimated, thereby casting doubt on the economic justifications
for publicly funded arenas. Notwithstanding this evidence, cities continue
to provide millions of dollars for new stadium construction.
This discussion outlines the traditional benefits and costs of public
stadium funding and then considers an alternative approach that focuses
on those who hold “property rights” to the monetary benefits
of a new stadium. Data from professional baseball during the 1990’s
are used to illustrate the approach.
The
standard approach in the economics of sports arenas focuses on the public
benefits of a publicly funded venue, including job creation, economic
growth, increased tourism and civic pride. However, academic studies
consistently show the public benefits of sports arenas may be greatly
overestimated, thereby casting doubt on the economic justifications
for publicly funded arenas. Notwithstanding this evidence, cities continue
to provide millions of dollars for new stadium construction.