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The Economic Impact of Postseason Play in Professional Sports

University of Maryland Baltimore County

Brad R. Humphreys

University of Maryland Baltimore County

An empirical examination of the determinants of real per capita income in cities with professional sports teams from 1969 to 1997 shows that postseason appearances are not associated with any change in the level of real per capita income in these cities. However, in the city that is home to the winning team from the Super Bowl, real per capita personal income is found to be higher by about $140, perhaps reflecting a link between winning the Super Bowl and the productivity of workers in cities. Overall, economic benefits flowing from future postseason appearances cannot justify public expenditures on professional sports franchises or facilities.

Key Words: sports • playoffs • income • benefits

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