EconTalk Skip Sauer on the Economics of Sports
20 snips
Apr 18, 2006 
Skip Sauer, Clemson economics professor who studies the economics of sports, discusses public stadium subsidies and why they often fail to deliver net value. He explores owners' impact claims, revenue sharing and how leagues balance competition. He contrasts U.S. closed leagues with European promotion/relegation and examines political deals behind stadium financing.
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Stadium Subsidies Often Fail Economic Tests
- Public subsidies for stadiums mainly transfer value to owners rather than generate net local economic growth.
- Skip Sauer finds rigorous studies show little positive impact on income or employment for host cities.
Bastiat's Seen And Unseen Applies To Sports
- Visible spending around games masks substitution away from other local spending and overstates net gains.
- Proper impact studies that account for the unseen alternatives find only modest or no net benefits.
Watch For Referendum Log-Rolling
- Beware referendum log-rolling that bundles stadium subsidies with other public projects.
- Voters should scrutinize combined proposals that trade arts or parks funding for stadium support.