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Based on this…A study in March found the Minnesota Vikings’ playoff victory against the Dallas Cowboys in January was a financial win for the region of about $13 million. Using that estimate for eight regular-season games (we know a playoff game may bring more activity), would equal $104 million. We could find no similar studies for the Atlanta Falcons.
You assume that the money spent on these games WOULDN’T be spent on other entertainment activities in the absence of the games taking place. This oversight is highlighted time after time in the studies I’ve read tonight. Just because a football game results in 13 million in receipts doesn’t mean that a very similar dollar amount is not spent at a wide variety of restaurants, concerts, clubs, etc., over the same time period. We’re talking about the spending of discretionary income. People will spend discretionary income on something. Football, gambling, food… it just doesn’t matter to the local economy where it gets spent. It just needs to get spent. And that’s the conclusion I keep running into. Study after study finds that these same dollars are spent. And when this economic activity takes place with businesses that are paying for their own buildings… all the better.
I found some of Baade’s actual study online. It is a good read. Here’s the summary provided.
“Southern Economic Journal”
Sports leagues, franchises, and civic boosters tout the economic benefits of professional sports as an incentive for host cities to construct new stadiums or arenas at considerable public expense. Past league-sponsored studies have estimated that new stadiums, franchises, and mega-events such as the Super Bowl increase economic activity by potentially hundreds of millions of dollars in host cities. A detailed regression analysis of taxable sales in Florida over the period extending from 1980 to 2005 fails to support these claims. New stadiums, arenas, and franchises, as well as mega-events, appear to be as likely to reduce taxable sales as increase them. Similarly, strikes and lockouts in professional sports have not systematically lead to reductions in local taxable sales.
The fact that local sales tax receipts don’t fall during football or baseball strikes goes a long ways towards supporting the idea that discretionary dollars will be spent with or without these franchises.
And with that… I’m out. There’s lots of work to do. And, after all, as a small business owner… I’ve got a new building to pay for and payroll to cover.