nep-spo New Economics Papers
on Sports and Economics
Issue of 2008‒07‒20
four papers chosen by
Joao Carlos Correia Leitao
University of the Beira Interior

  1. Sozio-ökonomische Schätzungen Olympischer Medaillengewinne: Analyse-, Prognose- und Benchmarkmöglichkeiten By Wolfgang Maennig; Christian Wellbrock
  2. South Africa 2010: Economic Scope and Limits By Swantje Allmers; Wolfgang Maennig
  3. Arenas vs. Multifunctional Stadia – Which Do Spectators Prefer? By Arne Feddersen; Wolfgang Maennig
  4. Managing the Feel-good factor at Mega Sports Events. Contributions to an Eclectic Theory Informed by the Experience of the FIFA World Cup 2006 By Wolfgang Maennig; Marcel Porsche

  1. By: Wolfgang Maennig (Chair for Economic Policy, University of Hamburg); Christian Wellbrock (Chair of Media Management, University of Hamburg)
    Abstract: Die sozio-ökonomischen Einflussfaktoren der Olympischen Medaillengewinne von 1960 bis 2004 werden mithilfe einer Tobit-Analyse geschätzt. Frühere Arbeiten werden bestätigt, wonach das Bruttoinlandproduktes pro Kopf, die Bevölkerungsgröße, der Heimvorteil, das Vorliegen eines sozialistischen Systems sowie der Erfolg bei vorangegangenen Olympischen Spielen einen positiven Einfluss zeigen. Beim Test von weiteren Variablen ergab sich, dass auch die zukünftige Austragung Olympischer Spiele in einem Land und ein gemäßigtes Klima einen signifikanten Einfluss haben. Andere Variablen wie das age dependency ratio, die Verbreitung von Massenmedien, die Existenz eines extrem trockenen Klimas, eine föderale Staatsstruktur sowie eine Proxy für die nationale Innovationsfähigkeit erwiesen sich nicht als signifikant. Es wird gezeigt, dass derartige Schätzungen unter Parameterinstabilität leiden können. Erst seit den Olympischen Spielen 1996 ist eine Parameterstabilisierung festzustellen. Out-of-sample Prognosen zeigen, dass der Erfolg wichtiger Teilnehmerländer durch das Modell unterschätzt wird. Dies öffnet den Raum für eine grundsätzlich andere Interpretationsmöglichkeit sozio-ökonomischer Medaillenschätzungen: Sie liefern letztlich eine Berechnung, wie viele Medaillen eine Nation angesichts seiner Ressourcenausstattung bei weltdurchschnittlicher Effizienz seines Hochleistungssportsystems gewinnen sollte. Länder, die mehr (weniger) Medaillen gewinnen als prognostiziert, weisen ein überdurchschnittlich (unterdurchschnittlich) effizientes Hochleistungssportsystem auf.
    Keywords: Olympic Games, Medals, sports economics
    JEL: L83
    Date: 2008
  2. By: Swantje Allmers; Wolfgang Maennig (Chair for Economic Policy, University of Hamburg)
    Abstract: This contribution provides an ex post analysis of the economic impacts of the two most recent single-country World Cups (WCs), Germany 2006 and France 1998. Based on macroeconomic indi-cators, the experiences of these WCs appear to be in line with existing empirical research on large sporting events and sports stadiums, which have rarely identified significant net economic benefits. Of more significance are the novelty effects of the stadiums, and “intangible effects” such as the image effect for the host nations and the feel-good effect for the population. The experiences of former WCs provide a context for analysing the scope and limits for South Africa 2010. Like previous host countries, South Africa might have to cope with difficulties such as the under-use of most WC-stadiums in the aftermath of the tournament. On the other hand, this paper examines a handful of arguments why South Africa might realise larger economic benefits than former hosts of WCs, such as the absence of the northern-style ‘couch potato effect’ and the absence of negative crowding-out effects on regular tourism. Furthermore, the relative scarcity of sport arenas in South Africa might induce a larger positive effect than in countries with ample provision of sports facilities. In addition, against the backdrop of continuous declines in South African poverty since 2001, the novelty effect of new stadiums might be of special importance. Finally, the innovative South African ambitions to use stadiums with ‘signature architecture’ as a tool for urban development or to generate external effects for the regional economy are different from former WCs.
    Keywords: Regional Economics, Sports Economics, World Cup, Stadium Impact, Feelgood Factor
    JEL: L83 R53 R58
    Date: 2008
  3. By: Arne Feddersen (Chair for Economic Policy, University of Hamburg); Wolfgang Maennig (Chair for Economic Policy, University of Hamburg)
    Abstract: Large sports stadia construction follows two different general concepts: (1) Mono-functional arenas which are specially suited for one sport exclusively and which are characterised by the absence of an athletic track. (2) Multifunctional sports stadia which can be used for different sporting or cultural events. Officials of clubs often argue that the atmosphere in an arena is significantly better than that of a multipurpose facility and that spectators prefer such an atmosphere. Estimated panel regressions with fixed effects show a significant positive effect of a mono-functional soccer stadium on spectator demand. Controlling for other demand determinants in the German professional soccer league, Bundesliga, an isolated effect of around 4,800 additional spectators a game can be found. This translates into a substantial increase of about 18.7% against the mean value of 25,602 spectators per Bundesliga game.
    Keywords: Demand for sport, soccer, mono-functional arenas, multifunctional stadia
    JEL: L83 C23 C24
    Date: 2008
  4. By: Wolfgang Maennig (Chair for Economic Policy, University of Hamburg); Marcel Porsche
    Abstract: One of the most important social effects of the 2006 football World Cup was the feel-good effect. The present contribution is one of the first to deal with the development of a general theory for the management of feel-good effects and systematically analyses the influencing factors taking the 2006 World Cup as an example. Of importance are suitable basic organizational and infrastructure conditions in the realms of security, transport, and ecology. The media activities of public and private sponsors should break away from the traditional narrow focus and classic brand sponsoring in favor of a more socially responsible sponsoring. Sporting success of the home team is important, which may be due in equal measures to the style of play of the team and its demeanor. The creation of generally accessible participation opportunities through free TV in the host country and the setting up of fan festivals can counteract any frustration that might arise from the allocation of ad-mission tickets. Any targeted manipulation of the weather may be considered with due regard to possible ecological implications.
    Keywords: Feel-good Effect, Sports Economics, World Cup, Mega-Events, Image Effects, Public Viewing
    JEL: H83 L83 M14
    Date: 2008

This nep-spo issue is ©2008 by Joao Carlos Correia Leitao. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.