Sport economic impact studies face varied conclusions (from statistically zero to eye-popping impacts) as to the impact that sports teams or events have on a local economy. We perform an economic impact study using a unique dataset of season ticket holders for men’s basketball at the University of Kentucky and the University of Louisville. We find the direct economic impact is $34.7 million for the University of Kentucky and $10.3 million for the University of Louisville from the baseline analysis. We perform sensitivity analyses to see how different assumptions affect the economic impact of these programs.
BaadeRAMathesonVA (2001) Home run or wild pitch? Assessing the economic impact of major league baseball’s all-star game. Journal of Sports Economics2(4): 307–327. https://doi.org/10.1177/152700250100200401
4.
BaadeRABaumannRMathesonVA (2008a) Selling the game: estimating the economic impact of professional sports through taxable sales. Southern Economic Journal74(3): 794–810. https://doi.org/10.1002/j.2325-8012.2008.tb00864.x
5.
BaadeRABaumannRWMathesonVA (2008b) Assessing the economic impact of college football games on local economies. Journal of Sports Economics9(6): 628–643. https://doi.org/10.1177/1527002508318363
6.
BaadeRABaumannRWMathesonVA (2011) Big men on campus: estimating the economic impact of college sports on local economies. Regional Studies45(3): 371–380. https://doi.org/10.1080/00343400903241519
7.
BaumannRWMathesonVAMuroiC (2009) Bowling in Hawaii: examining the effectiveness of sports-based tourism strategies. Journal of Sports Economics10(1): 107–123. https://doi.org/10.1177/1527002508327401
8.
BrookSL (2019) An estimation of ncaa football bowl subdivision demand as a two-part tariff. Managerial and Decision Economics40(1): 79–83. https://doi.org/10.1002/mde.2981
9.
CoatesD (2006) The tax benefits of hosting the super bowl and the mlb all-star game: the Houston experience. International Journal of Sports Finance1: 239–252. https://doi.org/10.1177/155862350600100406
10.
CoatesDDepkenCA (2009) The impact of college football games on local sales tax revenue: evidence from four cities in Texas. Eastern Economic Journal35: 531–547. https://doi.org/10.1057/eej.2009.29
CoatesDHumphreysBR (2003) The effect of professional sports on earnings and employment in the services and retail sectors in US cities. Regional Science and Urban Economics33(2): 175–198. https://doi.org/10.1016/s0166-0462(02)00010-8
13.
DawsonSABlahnaDJKeithJE (1993) Expected and actual regional economic impacts of great basin national park. Journal of Park and Recreation Administration11(4): 45–59.
14.
DixonAWHenryMMartinezJM (2013) Assessing the economic impact of sport tourists’ expenditures related to a university’s baseball season attendance. Journal of Issues in Intercollegiate Athletics6(1): 2.
15.
DonnellyMPVaskeJJDeRuiterDS, et al. (1998) Economic impacts of state parks: effect of park visitation, park facilities, and county economic diversification. Journal of Park and Recreation Administration16(4): 57–72.
16.
FrenchtlingD (1994) Assessing the economic impacts of travel and tourism: measuring economic benefits. In: RitchieJRBGoeldnerCR (eds). Travel, Toursm and Hospitality Research. John Wiley & Sons, New York, 2nd edition, 367–391.
17.
MathesonVABaadeR (2004) An economic slam dunk or march madness? Assessing the economic impact of the ncaa basketball tournament. The Economics of College Sports111–133.
18.
MathesonVABaadeRA (2006) Padding required: assessing the economic impact of the super bowl. European Sport Management Quarterly6(4): 353–374. https://doi.org/10.1080/16184740601154490
WolvertineBHallmanBShifflettS, et al. (2015) The $10 billion sports tab: how colleges are funding the athletics arms race. The Chronicle of Higher Education. Available at:https://www.chronicle.com/interactives/ncaa-subsidies-main(accessed 25 May 2025).
