nep-spo New Economics Papers
on Sports and Economics
Issue of 2007‒08‒08
four papers chosen by
Joao Carlos Correia Leitao
University of the Beira Interior

  1. One year later: A re-appraisal of the economics of the 2006 soccer World Cup By Wolfgang Maennig
  2. American Professional Sport Facilities: Considerations for the Future By Chad Seifried; Dave Shonk
  3. Pay, productivity and aging in Major League Baseball By Turner, Chad; Hakes, Jahn
  4. Economic Impact of 10K Race on the Greater Charleston, SC Area By Harry Davakos

  1. By: Wolfgang Maennig (University of Hamburg)
    Abstract: No two ways about it: the soccer World Cup competition in June 2006 in Germany was a great experience, not only for the soccer fans, and it still resonates far and wide. The various commentaries have all concluded that the economic effects were positive. Emphasis has often been placed on increased turnover in the retail trade, overnight accommodation, receipts from tourism and effects on employment. The present study shows that this reasoning is mostly of little value and may even be incorrect. Of more significance, however, are other (measurable) effects such as the novelty effect of the stadiums, the improved image for Germany and the feelgood effect for the population
    Keywords: Regional economics, sports economics, World Cup, Stadium Impact
    JEL: L83 R53 R58
    Date: 2007–07
  2. By: Chad Seifried (The Ohio State University); Dave Shonk (University of Louisville)
    Abstract: This work reveals American professional sport facilities impose staggering financial and spatial costs on the surrounding communities and suggests three areas future professional sport facility designers should consider before partaking in future renovations or new construction opportunities. The three areas include reducing the size, considering the environment, and embracing interaction and telecommunication technology. This work supports future American professional sport facilities are quite capable of reducing their size and costs while also maintaining or creating social and financial benefits for itself and the local community. For example, the professional sport facility can support more community-oriented activities through using the ‘innards’ of the stadium to justify public money. The professional sport facility will also need to respect the physical and biological environment and can through the use of renewable sources of energy (e.g. sun, water, wind). Finally, future professional sport facilities ought to embrace interaction and telecommunication technology to help improve the spectator experience.
    Keywords: sports
    JEL: L83
    Date: 2007–06
  3. By: Turner, Chad; Hakes, Jahn
    Abstract: Using panels of player pay and performance from Major League Baseball (MLB), we examine trends in player productivity and salaries as players age. Pooling players of all ability levels leads to a systematic bias in regression coefficients. After addressing this problem by dividing players into talent quintiles, we find that the best players peak about two years later than marginal players, and development and depreciation of ability appear to be more pronounced for players with the highest peak ability levels. Within-career variation, however, is less pronounced than between-player variation, and the talent level of players within a given quintile will typically remain lower than the talent level for rookies in the next higher quintile. Free agents are paid proportionately with their production at all ability levels, whereas young players’ salaries are suppressed by similar amounts.
    Keywords: Major League Baseball (MLB); career dynamics; player salaries and performance; quintile analysis
    JEL: L83
    Date: 2007–07–31
  4. By: Harry Davakos (The Citadel)
    Abstract: This paper will deal with the economic impact of the Cooper River Bridge Run on the Lowcountry region of South Carolina, and specifically on the city of Charleston and town of Mt. Pleasant. Additionally, although the event is also billed, at least theoretically, as one that also contributes to a labor income impact, and the creation of additional local jobs, that might happen only in theory. Furthermore, intangible impacts of the race might in reality be the greatest benefit of them all for the participants and local areas. Finally, the benefit of self-administered survey (web-based) over traditionally administered (physically, through volunteers) will be discussed and examined.
    Keywords: Economic Impact, Sport Tourism, Social Impact, Health Impact
    JEL: L83
    Date: 2007–06

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