Impact of Professional Sports in Surrounding Metropolitan Areas Terri Ekin Lucy Morales Mark Morales PAF 502: Public Service Research II

Introduction Research Question – Hypothesis Does a professional sports team’s presence improve the economic well being or quality of life of people in a surrounding metropolitan area? Significance of Research Question – Studies have been made to suggest that a sports stadium facility does not improve the economic well being of people in a surrounding area.

Theories to Formulate Basis of Hypothesis A large corporation will greatly benefit its community by the economic multiplier effect. A professional sports team is a large corporation. A sports team will benefit its community economically.

Public Policy Issues Government-subsidized industry – Historian W. G. Hardy. Intangible benefits – Quality of life issues Hefty price tag Economic benefit studies – Heartland Institute Study Opportunity costs Shifting current spending Subsidies leave the community

Our Hypothesis Professional sports teams are not, by themselves, a significant influence on certain measurable economic and quality of life issues.

Our Hypothesis Professional sports teams are not, by themselves, a significant influence on certain measurable economic and quality of life issues.

Discussion of Data Measurement Data Collection Methods Major League Baseball National Football League Fed Stats – US Census Bureau – Bureau of Labor Statistics – Bureau of Justice Statistics

Census Bureau

Bureau of Labor Statistics

Data Elements Population from 2000 US Census for Metropolitan Statistical Areas (n= 280) MLB or NFL? How many stadiums? Per-Capita income? Percent of – Women over 25 with post HS degree – Population with inc. below nat’l poverty rate – Households paying > 30% income in rent

More Data Elements Per-Capita income? Percent of – Women over 25 with post HS degree – Population with inc. below nat’l poverty rate – Households paying > 30% income in rent

More Data Elements Percent of working people >16 yrs working at home. --whose commute is 90 minutes Percent unemployment for 2000 For 51 MSA’s, the homicide rate for CY 1999

Research Findings Research Findings Statistical Tables Discussion

Descriptive Statistics

Correlation Table – Factor Analysis

Components

Top Fifty Cities with the number of their teams

Amenities Important Issues for communities and the public – “Being on the map…” – Having an identity Stadium as one part of a community amenity package – others: public services, infrastructure, culture/arts, diversity, climate, etc.

Economic Questions to Ask Does a stadium promote the general economic development of a metropolitan area? Can it assist in maintaining the vitality of the central city? Can it stimulate development? Studies researched say NO – I.e. - Bank One Ballpark - $230 million projected to create 400 jobs It would cost only $700,000 per job

Conclusion In spite of many studies failing to show positive economic benefits of stadia, communities still strive to keep and attract professional sports teams. – Major sports leagues act as monopolies – Cities enter into bidding wars to attract teams – Cities will continue to attract and retain major league sports based on perceived benefits Price of a New Stadium: $400 millionPrice of a New Stadium: $400 million Price of a New Quarterback: $50 millionPrice of a New Quarterback: $50 million Price of a Hot Dog and Beer: $20Price of a Hot Dog and Beer: $20 Having the Cardinals in your Hometown: PRICELESS!!!Having the Cardinals in your Hometown: PRICELESS!!!

Discussion of Research Limitations and Possible Future Efforts – Large metropolitan areas are very complex, making quantifying particular influences difficult. – Small scale – Design a questionnaire focused on perceived benefits of sports team, covering a random sample of people (public) from all parts of the economic spectrum (possibly based on income) This questionnaire could give more insight into quality of life indicators

References Edward I. Sidlow and Beth M. Henschen, “Building Balparks: The Public-Policy Dimensions of Keeping the Game in Town”, in The Economics and Politics of Sports Facilities, Edited by Wilbur C. Rich (Quorum Books, Westport, CT) 2000 “Sports Stadium Madness – Why it started – How to stop it” by Joseph L. Bast, The Heartland Institute 1, W.G. Hardy, David Swindell and Mark S. Rosentraub, “Who Benefits from the Presence of Professional Sports Teams? The Implications for Public Funding of Stadiums and Arenas,” Public Administration Review, Jan/Feb, Vol. 58, No. 1, pp , 1998