THE POSITIVE ECONOMIC IMPACTS OF SPORTS
The goal of every city and economy is to achieve long-term economic growth. Economic growth, according to Wikipedia, is the increase in the market value of goods and services produced by an economy over a certain period of time. In order to accomplish this, economies must reach full employment, which effectively increases GDP, which is used to calculate economic growth. One such way to achieve economic growth is to create more jobs in the market, which is exactly what building sports stadiums and adding great players to the team do.
The erection of stadiums helps the economy in various ways, primarily by creating more jobs. When Nationals Park was built in Washington D.C., the economy was boosted because a plethora of jobs were created. Eugenie Birch, an urban researcher at the University of Pennsylvania, led a research team that found out that in 2012, “the team [employed] over 1,000 employees, more than half of whom live in the neighborhood” (Birch, Griffin, Lam 19). The insertion of the stadium gave hundreds of people jobs, in the process lowering unemployment and increasing GDP, causing the economy of the area to grow.
The addition of certain players to a roster has the potential to boost the economy of the area surrounding the team; LeBron James coming home to Cleveland is predicted to do just that. When the Akron-native, considered by many to be the best basketball player in the world, announced he was coming home, the sports world and the city of Cleveland both erupted, albeit for very different reasons. This was a big deal in the sports world because the best player was moving to a new team. For Cleveland, however, LeBron’s homecoming could potentially mean, “nearly $500 million added to the local economy” (Gregory). Sean Gregory, a writer for Time magazine, was able to come up with this lofty number after talking to LeRoy Brooks, a professor of finance at the Boler School of Business at John Carroll University, who took into account the rise in ticket prices, the increase in merchandise sold, and the team’s inclusion in the playoffs. Essentially, LeBron’s decision to come home will likely improve Cleveland’s economy.
There are many ways that a sports team helps the economy of its city grow. Building new stadiums and adding a great player are just two methods that have been proven to help cities achieve economic growth.
Works Cited
Birch, Eugénie L., Cara Griffin, and Chau Lam. "Ballparks as Urban Anchors." Penniur.upenn.edu. Penn Institute for Urban Research. Aug. 2013. Web. 23 Mar. 2015.
Gregory, Sean. “This Is How Much LeBron James Could Boost Cleveland’s Economy.” Time. Time, 14 July 2014. Web. 23 Mar. 2015.
The erection of stadiums helps the economy in various ways, primarily by creating more jobs. When Nationals Park was built in Washington D.C., the economy was boosted because a plethora of jobs were created. Eugenie Birch, an urban researcher at the University of Pennsylvania, led a research team that found out that in 2012, “the team [employed] over 1,000 employees, more than half of whom live in the neighborhood” (Birch, Griffin, Lam 19). The insertion of the stadium gave hundreds of people jobs, in the process lowering unemployment and increasing GDP, causing the economy of the area to grow.
The addition of certain players to a roster has the potential to boost the economy of the area surrounding the team; LeBron James coming home to Cleveland is predicted to do just that. When the Akron-native, considered by many to be the best basketball player in the world, announced he was coming home, the sports world and the city of Cleveland both erupted, albeit for very different reasons. This was a big deal in the sports world because the best player was moving to a new team. For Cleveland, however, LeBron’s homecoming could potentially mean, “nearly $500 million added to the local economy” (Gregory). Sean Gregory, a writer for Time magazine, was able to come up with this lofty number after talking to LeRoy Brooks, a professor of finance at the Boler School of Business at John Carroll University, who took into account the rise in ticket prices, the increase in merchandise sold, and the team’s inclusion in the playoffs. Essentially, LeBron’s decision to come home will likely improve Cleveland’s economy.
There are many ways that a sports team helps the economy of its city grow. Building new stadiums and adding a great player are just two methods that have been proven to help cities achieve economic growth.
Works Cited
Birch, Eugénie L., Cara Griffin, and Chau Lam. "Ballparks as Urban Anchors." Penniur.upenn.edu. Penn Institute for Urban Research. Aug. 2013. Web. 23 Mar. 2015.
Gregory, Sean. “This Is How Much LeBron James Could Boost Cleveland’s Economy.” Time. Time, 14 July 2014. Web. 23 Mar. 2015.