The Economics of Sports Facilities and Their Communities | Zendy

John J. Siegfried | Zendy; Andrew Zimbalist | Zendy

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The Economics of Sports Facilities and Their Communities

Author(s) -

John J. Siegfried,

Andrew Zimbalist

Publication year - 2000

Publication title -

the journal of economic perspectives

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 9.614

H-Index - 196

eISSN - 1944-7965

pISSN - 0895-3309

DOI - 10.1257/jep.14.3.95

Subject(s) - monopoly , economic rent , league , negotiation , empirical evidence , business , rent seeking , subsidy , public economics , sport management , economics , labour economics , marketing , market economy , political science , politics , law , management , philosophy , physics , epistemology , astronomy

Since the 1950s, taxpayers have been the primary investors in stadia built for the use of privately-owned professional sports teams. Team owners have argued that sports facilities boost local economic activity; however, economic reasoning and empirical evidence suggest the opposite. Public support for stadia is also driven by demand for community image, and owners of sports teams supply a scarce input into image enhancement--participation in the major league--for which they have been able to extract monopoly rents from dispersed taxpayers. We suggest reforms to dissipate the monopoly sports leagues exercise when negotiating with host communities for their teams.

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