An Assessment of Economic Impact Techniques for Small Sporting Events

Abstract

Many sporting events, ranging from small to large in number of games and attendance, bring financial benefits to the host community each year. Economic impact studies are often conducted to estimate the financial value of these special events and solicit bids for future hosting of the events. Some of these studies have been criticized for giving misleading results. This study demonstrates a conservative research procedure that is intended to prevent inflated economic impact figures. It was suggested that three key factors in an economic impact study must be controlled:. data collection methods, use of a multiplier, and interpretation of the results. Although a conservative measure may result in an underestimated figure, the credibility of the report is enhanced. A credible analysis of financial impacts will be valuable to event directors in attracting bids from prospective host communities and program sponsorship.