An Explanation of Economic Impact: Why Positive Impacts Can Exist for Smaller Sports

Sport, Business and Management: An International Journal

37 Pages Posted: 1 Jan 2016 Last revised: 26 Jun 2020

See all articles by Nola Agha

Nola Agha

University of San Francisco

Daniel A. Rascher

University of San Francisco - Sport Management Program; SportsEconomics; OSKR, LLC

Date Written: December 30, 2015

Abstract

This explanatory research reviews the economic impact literature to identify the conditions that would theoretically allow any sport, large or small, to generate positive economic effects. Nine conditions are identified that, when present, could allow a community to experience a positive economic impact from a team or stadium. The nine conditions are then used to explain the discrepancy in known empirical outcomes in Major and Minor League Baseball. It appears as if major league teams are more likely to violate the conditions while minor league teams are not. This research finds theoretical support for previous suggestions that smaller teams and events may be beneficial to local economies. In doing so, it also explains previous empirical results that found some minor league baseball classifications are associated with positive gains in per capita income. Stakeholders can use the nine conditions to understand expected economic impact of their relevant sports. This research provides a comprehensive guide to understanding when economic impact can be positive.

Keywords: economic impact, minor league baseball, MLB, stadiums, efficiency

Suggested Citation

Agha, Nola and Rascher, Daniel A., An Explanation of Economic Impact: Why Positive Impacts Can Exist for Smaller Sports (December 30, 2015). Sport, Business and Management: An International Journal, Available at SSRN: https://ssrn.com/abstract=2709542

Nola Agha (Contact Author)

University of San Francisco ( email )

2130 Fulton Street
San Francisco, CA 94117
United States

Daniel A. Rascher

University of San Francisco - Sport Management Program ( email )

San Francisco, CA 94117
United States

SportsEconomics ( email )

2200 Powell St.
Emeryville, CA 94608
United States

OSKR, LLC ( email )

6425 Christie Avenue
Suite 230
Emeryville, CA 94608
United States

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