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

Connolly, Jennifer M.; Touchton, Michael

doi:10.1111/pbaf.12271

Cited by 7 publications

(4 citation statements)

References 24 publications

(24 reference statements)

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“…Researchers have found that framing stadiums as economic development projects is persuasive; therefore, it is unsurprising that stadium proponents often promote their fiscal potency as the primary justification for public subsidies (Connolly and Touchton 2020). Though common mistakes of commissioned economic impact analyses are well documented, professional consultant studies appear to be effective in promoting the stadium funding.…”

Section: Evaluation Frameworkmentioning

confidence: 99%

Estimating the Fiscal Impact of Stadium Developments: Evaluating a Pro Forma Model

Baumann,

Bradbury

2023

Public Finance Review

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Although researchers have demonstrated conclusively that sports stadiums are not economic development catalysts, stadium projects that include preplanned ancillary developments have been proposed as a salutary strategy to overcome the widely observed dismal economic performance of standalone stadiums. Using an objective rubric for evaluating economic impact studies, we review a commissioned pro forma model that claims to demonstrate net positive fiscal impacts of two prominent publicly-financed stadium-anchored developments. Using assumptions informed by existing research and established discipline standards, the model estimates substantial negative returns for both projects (−$40 to −$60 million in Worcester, Massachusetts and −$100 to −$200 million in Cobb County, Georgia). We find that the reported fiscal surpluses derive from chosen assumptions and not the stadiums’ complementary developments. We conclude that pro forma estimates do not provide credible forecasts of fiscal impacts, and ancillary developments do not improve the fiscal returns of stadium projects.

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Section: Evaluation Frameworkmentioning

confidence: 99%

Estimating the Fiscal Impact of Stadium Developments: Evaluating a Pro Forma Model

Baumann,

Bradbury

2023

Public Finance Review

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“…Professional consulting firms often produce these advocacy reports, but moonlighting academic researchers and university‐affiliated centers are often contracted to lend credibility to the report's dubious conclusions. Stadium boosters likely commission private economic impact reports because voters view public funding of stadiums more favorably when they are framed as economic development catalysts (Connolly & Touchton, 2020). Commissioned impact studies are promoted to the community, local media, local growth coalition members, and elected representatives as proof of a stadium's favorable economic prospects.…”

Section: Explaining the Disconnect Between Research And Policy Decisionsmentioning

confidence: 99%

Public policy toward professional sports stadiums: A review

Bradbury,

Coates,

Humphreys

2023

J Policy Anal Manage

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This article informs public policy toward professional sports stadiums, which state and local governments routinely subsidize. Our analysis provides a history of stadium construction and funding in the U.S., documenting trends that portend a forthcoming new wave of stadiums. Despite robust evidence that stadiums are not economic development catalysts and confer limited social benefits, public outlays persist and exhibit a positive growth trajectory, which could prove costly to government budgets in coming decades. We review contemporary justifications for public subsidies, focusing on proposed salutary development and budgeting strategies. Economic research continues to demonstrate that stadiums remain poor public investments, and optimal public funding of professional sports venues is substantially less than typical subsidy levels. We examine economic, political, and institutional factors that contribute to the disconnect between research and policy, and we provide recommendations to promote sound public policy.

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“…Stadium boosters often hire consultants to conduct economic or fiscal impact analyses that demonstrate the proposed sports development will generate large returns to the community through increased economic activity, creating jobs and wealth in the community while growing the tax base to pay for itself through increased tax collections. These reports are part of what Coates and Humphreys (2008) describe as a “promotional literature.” These reports are often released at the same time the stadium project is announced, because economic development justifications are persuasive in fostering favorable public perceptions of sports facility subsidies (Connolly & Touchton, 2020). Delaney and Eckstein (2008) provide examples of how local media outlets often present advocacy studies uncritically or provide false balance to more credible academic studies, which can influence public perceptions.…”

Section: The Public Funding Paradoxmentioning

confidence: 99%

“…These reports are part of what Coates and Humphreys (2008) describe as a "promotional literature." These reports are often released at the same time the stadium project is announced, because economic development justifications are persuasive in fostering favorable public perceptions of sports facility subsidies (Connolly & Touchton, 2020). Delaney and Eckstein (2008) provide examples of how local media outlets often present advocacy studies uncritically or provide false balance to more credible academic studies, which can influence public perceptions.…”

Section: High-profile Advocacy Reportsmentioning

confidence: 99%

The impact of professional sports franchises and venues on local economies: A comprehensive survey

Bradbury

Coates

Humphreys

2022

Journal of Economic Surveys

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Local governments routinely subsidize sports stadiums and arenas using the justification that hosting professional franchises produces economic development and social benefits in the community. The prevalence of venue subsidies generated an extensive and vibrant research literature, which spans over 30 years and includes more than 130 studies. We chronicle this body of research from early studies of tangible economic impacts in metropolitan areas, using basic empirical methods, through recent analyses that focus on sublocal and nonpecuniary effects and employ more sophisticated empirical methods. Though findings have become more nuanced, recent analyses continue to confirm the decades‐old consensus of very limited economic impacts of professional sports teams and stadiums. Even with added nonpecuniary social benefits from quality‐of‐life externalities and civic pride, welfare improvements from hosting teams tend to fall well short of covering public outlays. Thus, the large subsidies commonly devoted to constructing professional sports venues are not justified as worthwhile public investments. We also investigate the paradox of local governments continuing to subsidize sports facilities despite overwhelming evidence of their economic impotence. Our analysis informs academic researchers and policymakers to motivate future studies and promote sound policy decisions guided by relevant research findings.

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

Cited by 7 publications

References 24 publications

Estimating the Fiscal Impact of Stadium Developments: Evaluating a Pro Forma Model

Estimating the Fiscal Impact of Stadium Developments: Evaluating a Pro Forma Model

Public policy toward professional sports stadiums: A review

The impact of professional sports franchises and venues on local economies: A comprehensive survey

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