SpringerLink
Log in

Robert Baade: Stadium Economics Pioneer

  • Chapter
  • First Online:
The Economic Impact of Sports Facilities, Franchises, and Events

Part of the book series: Sports Economics, Management and Policy ((SEMP,volume 23))

  • 203 Accesses

Abstract

Robert Baade was the first economist to estimate the effects of sports stadiums and teams on local economies. His work served as the foundation for the subsequent large and vibrant economics literature that continues to the present. His initial finding that stadiums have limited economic impacts on host localities has endured and shaped the consensus of the economics discipline that stadiums are poor public investments. This chapter reviews Dr. Baade’s early studies to demonstrate their proper context as pioneering research in the field.

Sports are so intimately woven into the fabric of our culture that it seems inconceivable that stadiums will not be constructed in which to showcase our social jewels. Yet the rationale offered in defense of public subsidization of stadiums is decidedly economic.

Robert Baade (1987, p. 18)

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution

Subscribe and save

Springer+ Basic
EUR 32.99 /Month
  • Get 10 units per month
  • Download Article/Chapter or Ebook
  • 1 Unit = 1 Article or 1 Chapter
  • Cancel anytime
Subscribe now

Buy Now

Chapter
EUR 29.95
Price includes VAT (Germany)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
EUR 128.39
Price includes VAT (Germany)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
EUR 171.19
Price includes VAT (Germany)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free ship** worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Similar content being viewed by others

Notes

  1. 1.

    Chicago Booth survey of US economic experts to the statement: “Providing state and local subsidies to build stadiums for professional sports teams is likely to cost the relevant taxpayers more than any local economic benefits that are generated.” The lone economist to disagree Michael Greenstone offered a classic positive externality justification: “Sports teams generate value that they cannot capture thru tixs/tv—Chicagoans benefited from Cubs winning [World Series]. Subsidies are compensation” (US Economics Experts Panel 2017).

  2. 2.

    This comment is not meant to diminish the importance of these contributions. My intention is to note that previous economic studies of stadiums were focused mainly on other aspects.

  3. 3.

    Baade contributed two other timely essays (also with Sanderson) to the volume, examining stadium situations specific to Chicago and minor league baseball, which detailed the political, economic, and industry challenges that these venues faced.

References

  • M.H. Armacost, Foreword, in Sports, Jobs, and Taxes: The Economic Impact of Sports Teams and Stadiums, ed. by R.G. Noll, A.S. Zimbalist, (Brookings Institution Press, Washington, DC, 1997), pp. vii–ix

    Google Scholar 

  • R.A. Baade, Is there an economic rationale for subsidizing sports stadiums? Policy Study 13 (1987), The Heartland Institute

    Google Scholar 

  • R.A. Baade, Professional sports as catalysts for metropolitan economic development. J. Urban Aff. 18(1), 1–17 (1996a)

    Article  Google Scholar 

  • R.A. Baade, What explains the stadium construction boom. Real Estate Issues 21(3), 5–11 (1996b)

    Google Scholar 

  • R.A. Baade, R.F. Dye, An analysis of the economic rationale for public subsidization of sports stadiums. Ann. Reg. Sci. 22(2), 37–47 (1988a)

    Article  Google Scholar 

  • R.A. Baade, R.F. Dye, Sports stadiums and area development: A critical review. Econ. Dev. Q. 2(3), 265–275 (1988b)

    Article  Google Scholar 

  • R.A. Baade, R.F. Dye, Stadiums and professional sports on metropolitan area development. Growth Chang. 12(2), 1–14 (1990)

    Google Scholar 

  • R.A. Baade, V.A. Matheson, High octane? Grading the economic impact of the Daytona 500. Marquette Sports Law J. 10(2), 401–415 (2000a)

    Google Scholar 

  • R.A. Baade, V.A. Matheson, An assessment of the economic impact of the American Football Championship, the super bowl, on host communities. Reflect Perspect. 30(2–3), 35–46 (2000b)

    Google Scholar 

  • R.A. Baade, V.A. Matheson, Home run or wild pitch? The economic impact of Major League Baseball’s All-Star Game. J. Sports Econ. 2(4), 307–326 (2001)

    Article  Google Scholar 

  • R.A. Baade, V.A. Matheson, Bidding for the Olympics: Fool’s gold? in Transatlantic Sport: The Comparative Economics of North American and European Sports, ed. by C.P. Barros, M. Ibrahimo, S. Szymanski, (Edward Elgar Publishing, London, 2002), pp. 127–151

    Google Scholar 

  • R.A. Baade, V.A. Matheson, The quest for the cup: Assessing the economic impact of the world cup. Reg. Stud. 38(4), 343–354 (2004a)

    Article  Google Scholar 

  • R.A. Baade, V.A. Matheson, Race and riots: A note on the economic impact of the Rodney King Riots (With Robert Baade). Urban Studies 41(13), 2691–2696 (2004b)

    Article  Google Scholar 

  • R.A. Baade, V.A. Matheson, Mega-sporting events in develo** nations: Playing the way to prosperity? (With Robert Baade). S. Afr. J. Econ. 72(5), 1084–1095 (2004c)

    Google Scholar 

  • R.A. Baade, V.A. Matheson, An economic slam dunk or march madness? Assessing the economic impact of the NCAA basketball tournament, in Economics of College Sports, ed. by J. Fizel, R. Fort, (Praeger Publishers, Westport, 2004d), pp. 111–133

    Google Scholar 

  • R.A. Baade, V.A. Matheson, Padding required: Assessing the economic impact of the super bowl. Eur. Sports Manage. Q. 6(4), 353–374 (2006)

    Article  Google Scholar 

  • R.A. Baade, V.A. Matheson, Professional sports, Hurricane Katrina, and the economic redevelopment of New Orleans. Contemp. Econ. Policy 25(4), 591–603 (2007)

    Article  Google Scholar 

  • R.A. Baade, V.A. Matheson, Striking out: Estimating the economic impact of Baseball’s World Series. Int. J. Sport Manag. Mark. 3(4), 319–334 (2008)

    Google Scholar 

  • R.A. Baade, V.A. Matheson, Going for the gold: The economics of the Olympics. J. Econ. Perspect. 30(2), 201–218 (2016)

    Article  Google Scholar 

  • R.A. Baade, A.R. Sanderson, The employment effect of teams and sport facilities, in Sports, Jobs, and Taxes: The Economic Impact of Sports Teams and Stadiums, ed. by R.G. Noll, A.S. Zimbalist, (Brookings Institution Press, Washington, DC, 1997), pp. 92–118

    Google Scholar 

  • R.A. Baade, R.W. Baumann, V.A. Matheson, Estimating the economic impact of natural and social disasters with an application to Hurricane Katrina. Urban Stud. 44(11), 2061–2076 (2007)

    Article  Google Scholar 

  • R.A. Baade, R.W. Baumann, V.A. Matheson, The economic impact of college football games on local economies. J. Sports Econ. 9(6), 628–643 (2008)

    Article  Google Scholar 

  • R.A. Baade, R.W. Baumann, V.A. Matheson, Rejecting ‘conventional’ wisdom: Estimating the economic impact of national political conventions. East. Econ. J. 35(4), 520–530 (2009)

    Article  Google Scholar 

  • R.A. Baade, R.W. Baumann, V.A. Matheson, Slippery slope? Assessing the economic impact of the 2002 Winter Olympic Games in Salt Lake City, Utah. Region Dév. 31, 81–91 (2010)

    Google Scholar 

  • R.A. Baade, R.W. Baumann, V.A. Matheson, Big men on campus: Estimating the economic impact of college sports on local economies. Reg. Stud. 45(3), 371–380 (2011)

    Article  Google Scholar 

  • R.A. Baade, R.W. Baumann, V.A. Matheson, Mega-events and tourism: The case of the 2014 FIFA World Cup and the 2016 Rio Summer Olympic Games, in A Modern Guide to Sports Economics, ed. by S. Kesenne, R. Koning, L. Perez, (Edward Elgar, 2021), pp. 174–188

    Google Scholar 

  • D.V. Baim, The Sports Stadium as a Municipal Investment (Greenwood Press, Westwood, 1994)

    Google Scholar 

  • J.C. Bradbury, Determinants of revenue in sports leagues: An empirical assessment. Econ. Inq. 57(1), 121–140 (2019)

    Article  Google Scholar 

  • J.C. Bradbury, The impact of sports stadiums on localized commercial activity: Evidence from a business improvement district. J. Reg. Sci. 62(1), 194–217 (2022)

    Article  Google Scholar 

  • J.C. Bradbury, D. Coates, B.R. Humphreys, The impact of professional sports franchises and venues on local economies: A comprehensive survey. J. Econ. Surv. 37(4), 1389–1431 (2023)

    Google Scholar 

  • T.V. Chema, When professional sports justify the subsidy, a reply to Robert A. Baade. J. Urban Aff. 18(1), 19–22 (1996)

    Article  Google Scholar 

  • Y. Chikish, B.R. Humphreys, C. Lui, A. Nowak, Sports-led tourism, spatial displacement, and hotel demand. Econ. Inq. 57(4), 1859–1878 (2019)

    Article  Google Scholar 

  • R.H. Coase, Essays on Economics and Economists (University of Chicago Press, Chicago, 1994)

    Book  Google Scholar 

  • D. Coates, B.R. Humphreys, The growth effects of sports franchises, stadia and arenas. J. Policy Anal. Manage. 18(4), 601–624 (1999)

    Article  Google Scholar 

  • D. Coates, B.R. Humphreys, The effect of professional sports on earnings and employment in the services and retail sectors in U.S. cities. Reg. Sci. Urban Econ. 33(2), 175–198 (2003)

    Article  Google Scholar 

  • D. Coates, B.R. Humphreys, Novelty effects of new facilities on attendance at professional sporting events. Contemp. Econ. Policy 23(3), 436–455 (2005)

    Article  Google Scholar 

  • J.L. Crompton, Analysis of sports facilities and events: Eleven sources of misapplication. J. Sport Manag. 9(1), 14–35 (1995)

    Article  Google Scholar 

  • K.J. Delaney, R. Eckstein, Public Dollars, Private Stadiums: The Battle over Building Sports Stadiums (Rutgers University Press, 2003)

    Google Scholar 

  • C.A. Depken, E. Frank Stephenson, Hotel demand before, during, and after sports events: Evidence from Charlotte, North Carolina. Econ. Inq. 56(3), 1764–1776 (2018)

    Article  Google Scholar 

  • M. El-Hodiri, J. Quirk, An economic model of a professional sports league. J. Polit. Econ. 79(6), 1302–1319 (1971)

    Article  Google Scholar 

  • K. Harger, B.R. Humphreys, A. Ross, Do new sports facilities attract new businesses? J. Sports Econ. 17(5), 483–500 (2016)

    Article  Google Scholar 

  • H. Huang, B.R. Humphreys, New sports facilities and residential housing markets. J. Reg. Sci. 54(4), 629–663 (2014)

    Article  Google Scholar 

  • I. Hudson, Bright lights, big city: Do professional sports teams increase employment? J. Urban Aff. 21(4), 397–407 (1999)

    Article  Google Scholar 

  • I. Hudson, The use and misuse of economic impact analysis. J. Sport Soc. Issues 25(1), 20–39 (2001)

    Article  Google Scholar 

  • B.R. Humphreys, A. Nowak, Professional sports facilities, teams and property values: Evidence from NBA team departures. Reg. Sci. Urban Econ. 66, 39–51 (2017)

    Article  Google Scholar 

  • US Economic Experts Panel, Sports stadiums (2017). https://www.kentclarkcenter.org/surveys/sports-stadiums/. Accessed 14 June 2021

  • M.Q. Islam, Local development effect of sports facilities and sports teams: Case studies using synthetic control method. J. Sports Econ. 20(2), 242–260 (2019)

    Article  Google Scholar 

  • N.M. Jensen, E.J. Malesky, Incentives to Pander: How Politicians Use Corporate Welfare for Political Gain (Cambridge University Press, New York, 2018)

    Book  Google Scholar 

  • B.K. Johnson, P.A. Groothuis, J.C. Whitehead, The value of public goods generated by a major league sports team. J. Sports Econ. 2(1), 6–21 (2001)

    Article  Google Scholar 

  • A. Joshi, B.P. Horn, R.P. Berrens, Major League Soccer expansion and property values: Do sports franchises generate amenities or disamenities? Appl. Econ. 52(44), 4881–4899 (2020)

    Article  Google Scholar 

  • J.G. Long, Public-Private Partnerships for Major League Sports Facilities (Taylor and Francis, New York, 2013)

    Google Scholar 

  • V. Matheson, Is there a case for subsidizing sports stadiums? J. Policy Anal. Manage. 38(1), 271–277 (2019)

    Article  Google Scholar 

  • J. McKinley, Public foots most of the $1.4 billion for a stadium. Buffalo fans cheer. New York Times (2022, April 16), https://www.nytimes.com/2022/04/16/nyregion/new-buffalo-bills-stadium.html, Accessed 16 Apr 2022

  • W.C. Neale, The peculiar economics of professional sports. Q. J. Econ. 78(1), 1–14 (1964)

    Article  Google Scholar 

  • A.C. Nelson, Prosperity or blight? A question of Major League Stadia locations. Econ. Dev. Q. 15(3), 255–265 (2001)

    Article  Google Scholar 

  • R.G. Noll, Attendance and price setting, in Government and the Sports Business, ed. by R.G. Noll, (The Brookings Institution, Washington, DC, 1974), pp. 115–157

    Google Scholar 

  • B. Okner, Subsidies of stadiums and arenas, in Government and the Sports Business, ed. by R.G. Noll, (The Brookings Institution, Washington, DC, 1974), pp. 325–347

    Google Scholar 

  • G. Propheter, Subsidies and stadia’ opulence. J. Sports Econ. 18(1), 3–18 (2017)

    Article  Google Scholar 

  • G. Propheter, Professional sports as economic activity magnets: Some evidence from employment microdata. J. Urban Aff. 41(6), 842–852 (2019)

    Article  Google Scholar 

  • J. Quirk, R.D. Fort, Pay Dirt: The Business of Professional Team Sports (Princeton University Press, Princeton, 1997)

    Google Scholar 

  • S. Rottenberg, The baseball players’ labor market. J. Polit. Econ. 64(3), 242–258 (1956)

    Article  Google Scholar 

  • C.A. Santo, The economic impact of sports stadiums: Recasting the analysis in context. J. Urban Aff. 27(2), 177–191 (2005)

    Article  Google Scholar 

  • G.W. Scully, Pay and performance in major league baseball. Am. Econ. Rev. 64(6), 915–930 (1974)

    Google Scholar 

  • P. Sommers (ed.), Diamonds Are Forever: The Business of Baseball (Brookings Institution Press, Washington, DC, 1992)

    Google Scholar 

  • P.D. Staudohar, J.A. Mangan (eds.), The Business of Professional Sports (University of Illinois Press, Chicago, 1991)

    Google Scholar 

  • B. Stitzel, C.L. Rogers, NBA sweet spots: Distance-based impacts on establishment-level sales. Growth Chang. 50(1), 335–351 (2019)

    Article  Google Scholar 

  • R.W. Wassmer, R.S. Ong, G. Propheter, Suggestions for the needed standardization of determining the local economic impact of professional sports. Econ. Dev. Q. 30(3), 252–266 (2016)

    Article  Google Scholar 

  • R. Whaples, Do economists agree on anything? Yes! Economists’ Voice 3(9), 1–6 (2006)

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Kennesaw State University, Kennesaw, GA, USA

    John Charles Bradbury

Authors
  1. John Charles Bradbury
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to John Charles Bradbury .

Editor information

Editors and Affiliations

  1. Department of Economics and Accounting, College of Holy Cross, Worcester, MA, USA

    Victor A. Matheson

  2. Department of Economics and Accounting, College of the Holy Cross, Worcester, MA, USA

    Robert Baumann

Rights and permissions

Reprints and permissions

Copyright information

© 2023 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Bradbury, J.C. (2023). Robert Baade: Stadium Economics Pioneer. In: Matheson, V.A., Baumann, R. (eds) The Economic Impact of Sports Facilities, Franchises, and Events. Sports Economics, Management and Policy, vol 23. Springer, Cham. https://doi.org/10.1007/978-3-031-39248-1_2

Download citation

Publish with us

Policies and ethics

Search

Navigation