A. Barton Hinkle on the Potential Economic Viability of Small Stadiums

What we know—based on decades of research—is that
publicly financed sports stadiums are a sucker’s bet for everyone
except the rich team players and their even richer owners. But some
recent research suggests smaller clubs and smaller facilities might
not be the economic sinkholes their bigger cousins are. The work
comes from Nola Agha, an assistant professor of sports management
at the University of San Francisco and arrives at what Agha terms
“an unexpected outcome”: Certain types of teams and facilities can
produce gains in regional income (albeit small ones: about $67 to
about $117 per capita). Agha cautions that her research doesn’t
include any cost-benefit analysis, “so there is no implication that
cities should invest in AA or rookie stadiums.” Still, writes A.
Barton Hinkle, the economic case against sports stadiums used to be
open and shut in every instance. Now, in some cases, it is simply
open.

View this article.