This paper is on ECON 213 Economics of Sports Franchise Movement. You will determine the marginal costs and benefits of a professional team relocating to a new market.
ECON 213 Economics of Sports Franchise Movement
You will determine the marginal costs and benefits of a professional team relocating to a new market. For your analysis you may consider a franchise in any professional team sport, but you must choose a team that has relocated at some time in the league’s history.
• The basic question you are to answer is why the team moved.
• Consider the market it vacated and the market into which it moved:
o Identify the benefits and costs of leaving the one market and those of moving into the new market
o Provide an estimate of their values
The primary references for this assignment are “A Note on the Local Economic Impact of Sports
Expenditures” by Siegfried & Zimbalist, Journal of Sports Economics, vol. 3 no. 4 (November 2002): pp 361-366, and “The Economics of Sports Facilities and Their Communities” by Siegfried & Zimbalist, Journal of Economic Perspectives, vol. 14, no.3 (Summer 2000): pp 95-114.
These articles will give you a background into economic impact analysis of public expenditures on professional sports teams and facilities.
Other resources (there are many other than your textbook) include:
• A Decade of Research on Sports Stadiums, (https://www.heartland.org/news-opinion/news/a-decadeof-research-on-sports-stadiums) compiled by John W. Skorburg, Budget & Tax News (Heartland Institute), February 1, 2005 (List of Cato Articles).
• Identifying the Real Costs and Benefits of Sports Facilities,
(https://www.lincolninst.edu/publications/working-papers/identifying-real-costs-benefits-sportsfacilities), by Tim Chapin, Lincoln Institute of Land Policy Working Paper © 2002.
• Upon Further Review: An Examination of Sporting Event Economic Impact Studies,
(http://thesportjournal.org/article/upon-further-review-an-examination-of-sporting-event-economicimpact-studies/), The Sports Journal, vol. 5, no .1, 2002.
The final report must be word processed, double-spaced and will be graded for both form and content. The final paper should be three (3) to five (5) pages of text, and then additional tables, calculations, and bibliography attached to the text. I encourage you proofread your report thoroughly prior to submission.
Once complete, upload your document by clicking on the appropriate assignment link.
Firstly, choose any professional team sport and identify a team which relocates.
Briefly discuss the history of the team in that sport, including its relocations from its original franchise location to its most recent. Further, identify which move of the team you will provide a study of the economics for its change in location. (2 points)
Thirdly, identify the costs and benefits for the team to remain in its original location. (2 points)
Moreover, provide an estimate for the costs and benefits for the team to remain in its original location. (2 points)
Also, identify the costs and benefits for the team to relocate to its new city. (2 points)
Additionally, provide an estimate of the costs and benefits for the team to relocate to its new city. (2 points)
Compare the costs and benefits for the team’s relocation. (2 points)
Finally, What is the estimate of the net benefit for the team’s relocation? (2 points)
This assignment is worth 20 points. 6 of those points will be awarded for the overall quality of the writing.
The other 14 as indicated above.