More Evidence Shows That Pro Sports Teams Don’t Boost The Economy

http://thinkprogress.org/economy/2013/01/03/1393781/bls-basketball-lockout/

By Pat Garofalo posted from ThinkProgress Economy on Jan 3, 2013

The owners of professional sports teams, along with their favorite politicians, often claim that sports franchises are good for the local economy. That assertion is then used to extract subsidies for new sports facilities (or to make upgrades to existing stadiums or arenas). Case in point, the National Football Leagues Atlanta Falcons want $400 million in public money for a new stadium.

But according to research published by the Bureau of Labor Statistics, having a pro sports team in town may be a net negative for the local economy. Paul Staudohar, professor emeritus of business administration at California State University, found in an examination of last year’s National Basketball Association lockout that shutting down sports leagues can be good for a city’s finances:

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Indeed, the cities appeared to perform better financially in years that games were canceled. There were other options that people spent their entertainment dollars on, in a substitution effect, while security needed for public safety at sporting events cost less because games were not played.

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