SPORTS WARS

Abstract

Sports teams are integral to the battle between cities for image and economic development. Although interregional moves of teams receive more publicity, intraregional battles between center cities and their suburbs are common. The benefits created by teams affect all cities in a region. As such, providing incentives to encourage moves within a region will result in increased profits for teams and higher salaries for players. Further, if teams do not generate a concentration of benefits for an investor city, then all cities in a region would be well served by treating professional sports teams as regional assets that require regional cooperation. Through an analysis of the impact of professional sports teams on the economies of cities in the Dallas/Fort Worth region, the inability of investor cities to capture benefits is illustrated. The results illustrate the need for regional cooperation to reduce public sector fiscal risks and the subsidies given to teams.