Journal of Business & Economic Policy

Economic Development Generated by Investment in Participation Sports
Clarence Barnes, Kevin E. Henrickson

Abstract
Academic studies are fairly consistent in finding no significant economic impact associated with the financing of sports stadiums. Instead, it is believed that these facilities simply shift existing spending from other avenues of entertainment towards sporting events, with no net increase in overall spending. In this paper, we present the estimated economic benefits associated with a different type of sporting facility, one designed for hosting participation sports events. Specifically, we look at a proposal to build a multipurpose sporting facility in Spokane Washington. Similar facilities have been built across the United States in the past five years, allowing us to project the impact that such a publicly funded facility would have on the tax base, with our estimates indicating a net increase of approximately $1 million in annual tax receipts.

Full Text: PDF