Local Sales Tax Revenue Redistribution and Sports: The Case of Major League Soccer in Bridgeview

Abstract

This study examines the extent to which Toyota Park, a Major League Soccer (MLS) stadium in the Village of Bridgeview, redistributes municipal sales tax revenue by taking advantage of Illinois's highly devolved local government structure. The analysis reveals that Toyota Park and its associated events are not statistically related to the village's sales tax revenue. However, the stadium affects surrounding municipalities' revenue; though, the odds a municipality will be a net winner or loser is nearly even.

Estimating the Effect of Sports Facilities on Local Area Commercial Rents: Evidence From Brooklyn’s Barclays Center

“…Reviews of these can be found in Coates and Humphreys (2008), Horn, Cantor, and Fort (2015), Wicker, Whitehead, Johnson, and Mason (2015), and Groothius and Rotthoff (2016). A fourth but much smaller strand of research considers the effect of sports and facilities on government’s tax base and revenue, which thus far has focused on the sales tax (Baade, Baumann, & Matheson, 2011; Coates & Depken, 2009, 2011; Propheter, 2014). Each of these literatures provide information on whether sports facilities can produce positive social outcomes that would justify the significant construction and operating subsidies state and local governments provide.…”

NBA sweet spots: Distance‐based impacts on establishment‐level sales

“…Focusing on NBA‐related industries mitigates concerns about the small size of sporting events relative to overall business activity. Previous research on sporting events uses taxable sales aggregated to the MSA or city level (Coates and Depken (), Coates and Depken (), Baade et al (), Propheter ()) which could obscure differential impacts on nearby and more distant establishments. The downside is that the NETS data are annual rather than quarterly or monthly.…”

“…We contribute to the literature by investigating spatially differentiated impacts focusing on sales in industries most likely to be affected by the sports attraction. Following Baade, Baumann, and Matheson (), Coates and Depken (, ), Propheter (), and Dean et al (), we focus on a measure of related sales activity . We extend these papers by using establishment‐level sales data instead of taxable sales data aggregated to the MSA, County, or City level.…”

“… Baade et al () study college sports in Florida, Coates and Depken (, ) study college football in Texas, Propheter () studies Major League Soccer impacts in Cook County, Illinois, and Dean et al () study the amenity effect of the National Basketball Association team, the Thunder, on Oklahoma City. …”

The Lure of New Jobs: How Framing Impacts Perceptions of Local Subsidies for Sports Teams

“…An extensive body of empirical evidence demonstrates that publicly funded sports stadiums do not spur net positive economic benefits (see Coates and Humphreys 2000, 2008Noll and Zimbalist 1997;Propheter 2014;Baade and Dye 1990;Baade and Sanderson 1997;Swindell and Rosentraub 1998, among others). The presence of professional sports may lead to higher wages in some sectors but lower wages in others (Coates andHumphreys 2003, 2011).…”