[PEN-L:6771] Urban Growth and Professional Sports

[PHILLPS@xxxxxxxxxxxxxxxx]

Dear Pen-ers,
Not that long ago there was a discussion on the net of the relation
between public expenditure on professional sports facilities and
urban welfare (I forget how defined).

A PhD student came to me today to ask about formal models of
urban economic growth with respect to professional sports teams
as "infrastructure" for a "world class city".  I argued that,
in fact, professional teams tended to be *negative* externalities
relative to amateur teams which is the opposite of which the city
and the (right-wing) provincial government argued when they wasted
30 million supporting the Winnipeg Jets for the year before the private
owners negotiated the best price to sell (Interestingly, the owners
transferred legal ownership out of the province to a numbered
company in Quebec during the time so they could avoid paying
capital gains taxes on the transactions.)  But all of this is perhaps
irrelevant.

Our student wants to know, what is the litterature about urban models
of sports (cultural) expenditure on subsidies and/or infrastructure on
economic growth (welfare?).  He is interested on the concept of
"externalities" in the provision of sports (cultural/recreational)
teams/facilities rather than the more usual multiplier effects of
such expenditures.

You may reply to me privately at <Phillp3@xxxxxxxxxxxxxxxx> or, if
you think this is of more general interest, to the list.

My (and Our student's thanks),
Paul Phillips,
Economics and Labour Studies,
University of Manitoba.
Winnipeg, Manitoba.
Phillp3@xxxxxxxxxxxxxxxx