AN EVENT STUDY OF THE ECONOMIC IMPACT OF PROFESSIONAL SPORT TEAMS ON LOCAL INCOMES

Abstract

Many cities have tried to use expensive incentives such as a state-of-the-art stadiums or tax exemptions to persuade major professional sport teams to relocate to or remain in their area. These cities do so because they expect a professional sport team to enhance the local economy. In this paper we utilize an event study approach to examine the economic impact ofa sport team on the local economy. The results indicate a negative impact ofa sport team on localper capita income in both the short and long-run.