NC State Ag Economist Dr. Mike Walden – “Impacts of Sports Teams”

Mary:  I’m Mary Walden, with economist MW, welcoming you to the economic perspective.   Today’s program looks at impacts of sports teams.  Mike, the world is filled with sports fans, and many of those fans would like to have a professional team in their hometown.  But landing a team is sometimes controversial because often public money must be used to attract the team or build the venue.  Is there economic research looking at this issue?

Mike:  Summary Answer

1. Yes, much research over the years, in two categories
2. One category looks at economic impacts of building the stadium or arena as well as the spending at the games
3. One issue with these – substantial part of the spending flows out of the region for players living elsewhere as well as for specialized construction companies
4. Other category looks at whether residents value the presence of a pro team
5. Done by seeing if team seems to increase local property values or rents
6. For example, a recent study of minor league baseball teams found this to be the case
7. Found rents of comparable residential units were 6% to 8% higher in mid-sized metro markets having minor league baseball teams
8. Look for more studies to come
9. I’m MW