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PROFESSIONAL SPORTS NO ECONOMIC BLESSING, STUDY FINDS; STADIUMS, FRANCHISES DON'T SIGNIFICANTLY CONTRIBUTE TO ECONOMY

 DETROIT, Nov. 29 /PRNewswire/ -- On the eve of the National Football League's expected announcement of expansion franchise "winners," one of the nation's leading experts on the economics of sports warned that the selected cities may be "losers" after all.
 Dr. Robert A. Baade, Vail Professor of Economics at Lake Forest College in Illinois, will participate this evening in a nationally televised "Nightline" discussion, announcing the findings of research he recently completed for The Heartland Institute.
 In a "thorough examination of an unprecedented quantity of data related to sports and personal income," Baade analyzed 48 cities, and the regions immediately surrounding them, over a 30-year period. Every U.S. metropolitan area that had either a professional sports team or a professional sports stadium during this period was included in his analysis. Among his findings:
 -- Of the 32 Metropolitan Statistical Areas (MSAs) where there was a change in the number of sports teams between 1958 and 1987, 30 MSAs showed no significant relationship between the presence of the teams and relative, real per-capita personal income growth. In the remaining two cases, the presence of sports teams was significantly positive once and significantly negative once.
 -- Even when the MSAs were grouped into regions, not one of the eight regions demonstrated a statistically significant relationship between professional sports teams and relative, real per-capita personal income growth.
 -- Of the 30 MSAs where there was a change in the number of stadiums less than 10 years old, 27 MSAs showed no significant relationship between the presence of a stadium and relative, real per-capita personal income growth. In all three of the remaining cases, the presence of a sports stadium was significantly negative.
 -- Four of the eight regions demonstrated no significant relationship between sports stadiums and relative, real per-capita personal income growth. Stadiums appear to have a significant positive impact in two regions and a significant negative impact in two.
 -- In no case did the presence of a professional sports stadium explain more than 5 percent of the variation in trend-adjusted regional income growth.
 Baade concludes that "Sports is filled with myths -- wonderful stories of heroic performances and courage under pressure. But increased government investment in sports teams and stadiums appears to have spawned an economic myth about professional sports: that the presence of sports teams and stadiums has a significant and unique effect on an area's economic growth. This study and others find no factual basis for this myth."
 A working draft of Baade's study, "Stadiums, Professional Sports, and Economic Development: Assessing the Reality" is available from The Heartland Institute.
 -0- 11/29/93 R
 /CONTACT: Thomas A. Shull of The Heartland Institute, 313-961-1950/ CO: Heartland Institute ST: Michigan IN: LEI SU:


WB -- NY060R -- 4947 11/29/93 15:01 EST
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Publication:PR Newswire
Date:Nov 29, 1993
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