Impact of Professional Sports in Surrounding Metropolitan Areas

1
Impact of Professional Sports in Surrounding
Metropolitan Areas

• Terri Ekin
• Lucy Morales
• Mark Morales
• PAF 502 Public Service Research II

2
Introduction

• Research Question
• Hypothesis
• Does a professional sports teams 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.

3
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.

4
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

5
Our Hypothesis

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

6
Our Hypothesis

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

7
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

8
Census Bureau
http//www.census.gov
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http//www.fedstats.gov
10
Bureau of Labor Statistics
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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 natl poverty rate
• Households paying gt 30 income in rent

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More Data Elements

• Per-Capita income?
• Percent of
• Women over 25 with post HS degree
• Population with inc. below natl poverty rate
• Households paying gt 30 income in rent

13
More Data Elements

• Percent of working people gt16 yrs working at
  home.--whose commute is lt 30 minutes-- whose
  commute is gt90 minutes
• Percent unemployment for 2000
• For 51 MSAs, the homicide rate for CY 1999

14
 Research Findings

• Statistical Tables
• Discussion

15
Descriptive Statistics

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Correlation Table Factor Analysis
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Correlation Table Factor Analysis
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Components
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(No Transcript)
20
Top Fifty Cities with the number of their teams
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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.

22
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

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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 million
• Price of a New Quarterback 50 million
• Price of a Hot Dog and Beer 20
• Having the Cardinals in your Hometown
  PRICELESS!!!

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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

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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, http//www.lpwi.org/newsletter/00news
  /00janfeb/six.html
• W.G. Hardy, http//www.mackinac.org/images.asp?id
  4131
• 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. 11-20, 1998