In the business of professional league sports, market conditions are the key determinate of the financial success or failure of a team. In the last few years, major league sports has experienced both growth into new markets and relocations of existing teams. Owners and the leagues use demographics, economic data, and governmental support to decide on where and when to expand and relocate. This book examines the sports business from 1950 through 2000. Historical demographic, economic, and team-related data provide the context. The authors apply metropolitan area statistics such as population growth and income, game attendance, and estimated market values to examine the business decisions made by individual teams in professional baseball, football, and basketball. The book looks at specific teams in terms of their long-term viability as a franchise and ranks their performances in economic and business terms. It also examines the related issues of taxpayer subsidies for new venues and the economic impact of professional sports on cities and regions. The book is a fascinating and comprehensive look at the business of sports and its place in American society, business, and economics.

“Details how owners . . . have shamelessly played cities against one another to get sweetheart deals for their stadiums.” —Sports Illustrated Can a sports franchise “blackmail” a city into getting what it wants—a new stadium, say, or favorable leasing terms—by threatening to relocate? In 1982, the owners of the Chicago White Sox pledged to keep the team in Chicago if the city approved a $5-million tax-exempt bond to finance construction of luxury suites at Comiskey Park. The city council approved it. A few years later, when Comiskey Park was in need of renovation, the owners threatened to move the team to Florida unless a new stadium was built. A site was chosen near the old stadium, property condemned, residents evicted, and a new stadium built. “We had to make threats,” the owners said. “If we didn't have the threat of moving, we wouldn’t have gotten the deal.” Sports is not a dominant industry in any city, this book points out, yet it receives the kind of attention one might expect to be lavished on major producers and employers. In Playing the Field, Charles Euchner examines the relationships between Los Angeles and the Raiders, Baltimore and the Colts and the Orioles, and Chicago and the White Sox, arguing that, in the absence of public standards for equitable arbitration between cities and teams, the sports industry has the ability to steer negotiations in a way that leaves cities vulnerable. He reveals what lies behind this leverage—and what that says about the urban political process.

Szymanski and Zimbalist pay special attention to the rich and complex evolution of baseball from its beginnings in America, and they trace modern soccer from its foundation in England through its subsequent expansion across the world.

There is no doubt that professional sports franchises and stadiums generate a significant amount of economic activity, but is the impact on the local economy positive, negative, or neutral? Studies have shown that, while franchises can give the economy a boost in the short term, there are little to no long-term positive effects. This capstone will examine the trend in public financing of stadiums, look at the impact of stadium location, explore the factors of the economy that are impacted by professional sports franchises, and determine if the effects vary by sport or by region. Several major case studies will be examined to provide specific examples, including the most recent Super Bowl in New Jersey. Once the literature review is complete, regression analysis will be used to make an ultimate conclusion on the value of professional sports franchises and stadiums in the United States and the optimal location in which to start a new professional sports franchise in the United States. This will be done using data from 2001-2012 and variables that have been proven to have an impact one way or another. The result will be a prediction of the type and location of the next professional sports franchise in the United States.

Economics of Professional sports uses economics to understand the sports industry. The book covers professional team sports from an economic perspective, including economic decisions made by fans, teams, leagues, and players. The book is intended as a textbook in an upper level undergraduate class.