The subtitle of The Wages of Wins is Taking Measure of the Many Myths in Modern Sport. In our book we detail myths ranging from the value of scoring in the NBA (it is over-valued), to the impact of labor disputes on attendance in sports (there isn’t much of one), to the ability of baseball teams to simply buy wins (not much of an ability).
Although our book covers many myths and misconceptions, there is one myth about sports that we completely ignore. And this particular myth actually costs tax payers millions of dollars (so it might be the most important myth of all).
What myth am I talking about? Basically, although sports leagues and politicians argue otherwise, subsidized sports stadiums do not generate enough economic growth to justify the taxpayer subsidy.
Here is Dennis Coates – professor of economics at the University of Maryland-Baltimore County – commenting on this subject (focusing on the stadium for the Washington Nationals) on a short clip at Reason.TV
(hat tip to Club for Growth, Skip Sauer at The Sports Economist, and JC Bradbury at Sabernomics).
In addition to being a professor at UMBC, Coates is also the current president of The North American Association of Sports Economists. I should also note that Coates is not the only one to find that sports stadiums do not promote economic growth. Brad Humphreys (co-author of Dennis), Victor Matheson, and Robert Baade (current president of the International Association of Sports Economists) would comprise an incomplete list of additional researchers who have also found that sports do not create much economic growth.
– DJ
Wages of Wins Journal 
Daniel
May 31, 2008
When the Spurs left the Alamodome for the SBC/AT&T center, the Alamodome suddenly became wildly profitable and was allowed to schedule a full range of conventions during the NBA season. Moving to a new stadium, primarily financed by an out-of-towner tax on rental cars and hotels, turned out to be best for the city.
Pete23
June 1, 2008
This is a very good post. Thank you ver much.
Erich
June 1, 2008
Daniel,
The out-of-towner tax increases the costs of conventions and reduces tourism. I believe Dennis would push for 100% privately financed arenas and would not tout the San Antonio model.
Nate
June 1, 2008
Oh, man…I completely agree with the post, but the phrase “hat tip to Club for Growth” gives me the willies.
The Field Guide to Sprawl calls this sort of thing “ballpork,” which works quite well.