The Economic Benefits of Sports Teams Are Difficult to Define

Sports teams are popular for improving brand image of a city and encouraging greater investment in downtown districts. People become attached to the image of a sports team as a representation of their city. The economic advantage of sports teams can be difficult to define as traditional economic measurements look for close relationships.  Putting the advantages of sports teams in perspective may help encourage focus on other economic fundamentals. 

 

Arenas are expensive and methods of financing them come from multiple sources. According to one study of American and U.S. facilities 70% of the money is from public coffers even though the teams are private (Siegfried & Zimbalist, 2006). The large cost of construction and the land and zoning requires require public involvement.

 

There should be a difference between a sports team and an arena. The arena is the physical facility that sports teams play in and are often financed through public monies. The team is licensed by a league and works independently from individual cities. The two are seen as the same thing in people’s minds even though teams can pack their bags and leave when contracts end.

 

The economic benefits of sports teams can be difficult to define from a pure numbers point of view. A review of sports teams over a decade found that sports teams don’t always result in distinct advantages for urban economies (Coates & Humphreys, 2003). The benefits of new jobs and new business can be somewhat limiting when compared to the costs of building large facilities. 

 

These studies are dated but do bring forward the idea that sports teams may not be what makes or breaks an area economically. It is much better to view sports teams as an enhancement to an area that provide local branding advantages and secondary support to local businesses.  Long-term sustainability of a city may rely on other factors beyond the public image a team offers. 

 

Calculating the full economic impact of a sports team requires the understanding the nature of branding and business, costs of construction, associated vendors, and the secondary impact of mass amounts of visitors on local businesses such as hotels and restaurants. The level of benefits can be difficult to define and calculate appropriately leaving decision-makers in the lurch.

 

Losing a professional sports team may impact the perception of an area and hurt egos but may not make or break a local economy. A thorough investigation of its total impact, directly and indirectly, would be needed to ensure that the loss has a significant influence on the area and what type of replacements might help alleviate the problem. Perhaps focusing on more fundamental aspects of the economy and business can create higher levels of long-term economic benefit.

 

Coates, D. & Humphreys, B. (2003). Professional sports facilities, franchises and urban economic development. Public Finance and Management, 3 (3). 

 

Siegried, J. & Zimbalist, A. (2006). The economic impact of sports facilities, teams and mega-events. Australian Economic Review, 39 (4).  

What Can Sharks, Bees and Humans Teach Us About Urban Development?

Torrey Pines

Sharks, Bees and Humans forage and explore in many of the same ways.  Researchers at University of Arizona studied the foraging and exploring patterns of a number of creatures in their habitats (1). In particular, they looked at the Hadza people of Tanzania who still forage and hunt in the same way that our ancestors did. To their amazement, they found similar patterns of activities among broad species.

The pattern is known as the Levy walk and is based on mathematical principles. The same patterns exist when foraging for food or walking around an amusement park (2). It entails short movements around a particular area and then longer movements into newer areas.

Co-author and anthropologist Brian Woods from Yale states, “Detecting this pattern among the Hadza, as has been found in several other species, tells us that such patterns are likely the result of general foraging strategies that many species adopt, across a wide variety of contexts” (3).  They argue that understanding how these patterns work may eventually influence urban development.

It is possible that this process is based on our evolutionary development to create net effects in an area. The short movements help us find the things we need for survival. Once an area is canvassed, we then move to change the environment and search again in a new area. At present, the researchers desire to conduct more studies to determine the actual reasons for and how these patterns may have influenced the societal development (4).

Putting this within an urban context, we may find that having local pockets of retail to serve basic needs of local residents with larger commercial areas could have some benefit. People will forage their neighborhoods and walk to the local grocery store but will naturally drive to shop at larger retailers or commercial districts. Getting people out of their houses and walking around can have a large impact on social cohesion and health. 

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