An Empirical Review of the Stadium Novelty Effect

Abstract

A conventional belief has persisted for decades that teams moving into new sports venues would experience a significant and prolonged boost in attendance. The “stadium novelty effect” asserted that modern stadiums and arenas were destination attractions in their own right with the ability to attract large number of visitors irrespective of team performance. Some analysts have indicated that a honeymoon period could last as long as 8 to 11 years. Analysis of historical attendance data provided little support for a novelty effect, as many new venues showed substantial declines in attendance after the first year. However, a separate analysis revealed that even after those declines, teams were in a better position as almost every facility reported attendances that exceeded those in the year preceding the team's move.