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Impact of Professional Sports in Surrounding Metropolitan Areas

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

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Impact of Professional Sports in Surrounding Metropolitan Areas

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  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 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.

  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

  9. http://www.fedstats.gov

  10. Bureau of Labor Statistics

  11. 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

  12. 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

  13. More Data Elements • Percent of working people >16 yrs working at home.--whose commute is < 30 minutes-- whose commute is >90 minutes • Percent unemployment for 2000 • For 51 MSA’s, the homicide rate for CY 1999

  14. Research Findings • Statistical Tables • Discussion

  15. Descriptive Statistics

  16. Correlation Table – Factor Analysis

  17. Correlation Table – Factor Analysis

  18. Components

  19. Top Fifty Cities with the number of their teams

  20. 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.

  21. 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

  22. 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!!!

  23. 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

  24. 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

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