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Journal of Sports Economics
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Article

Assessing the Economic Impact of College Football Games on Local Economies

Robert A. Baade1, Robert W. Baumann2, and Victor A. Matheson2*

1 Lake Forest College
2 College of the Holy Cross

* To whom correspondence should be addressed. E-mail: vmatheso{at}holycross.edu.


  Abstract
This article provides an empirical examination of the economic impact of spectator sports on local economies. Confirming the results of other ex post analyses of sports in general, this article finds no statistically significant evidence that college football games in particular contribute positively to a host’s economy. Our analysis from 1970 to 2004 of 63 metropolitan areas that played host to big-time college football programs finds that neither the number of home games played, the winning percentage of the local team, nor winning a national championship has a discernable impact on either employment or personal income in the cities where the teams play. An examination of a subset of 42 smaller college towns finds that winning seasons actually reduce the growth rate of per capita personal income. Although successful college football teams may bring fame to their home towns, fortune appears to be a bit more elusive.

First published on May 21, 2008, doi:10.1177/1527002508318363

Journal of Sports Economics 2008;9:628.

A more recent version of this article appeared on December 1, 2008

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