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Thu Jan 3, 2013, 10:53 AM

It's Actually Good For A City's Economy When Their Sports Teams Go On Strike

The Bureau of Labor Statistics just published a study on the economic impact of the 2011 NBA strike.

What shocked us most was the conclusion about the economic impact of strikes on host cities. Cities end up being better off when the league shuts down.

...
Also, the majority of the season was saved; it would have been very costly to owners and players had the season been lost entirely. In fact, it was this realization that caused the sides to some together. Compared with the 19981999 lockout, which lost about half the regular season, this one had a better outcome, because only 16 games were lost out of the 82-game schedule. Even if the 20112012 season had been canceled, it likely would have had little, if any, effect on the economic health of the cities that host NBA teams.

A 2001 study of past work stoppages found that, in 37 metropolitan area economies with professional sports franchises, there was no overall financial impact. Indeed, the cities appeared to perform better financially in years that games were canceled. There were other options that people spent their entertainment dollars on, in a substitution effect, while security needed for public safety at sporting events cost less because games were not played.



Read more: http://www.businessinsider.com/its-actually-good-for-a-citys-economy-when-their-sports-teams-go-on-strike-2013-1

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Response to FarCenter (Original post)

Thu Jan 3, 2013, 10:59 AM

1. A "Lock Out" is not the same as a "Strike"

 

A "Lock Out" is an action by the owners refusing to allow the workers to work unless they concede on issues.

A "Strike" is a job action by the workers

There is a difference.

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Response to IWelcome TheirHatred (Reply #1)

Thu Jan 3, 2013, 11:01 AM

2. Either way, strike or lockout, not having the games played benefits the city.

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Response to FarCenter (Reply #2)

Thu Jan 3, 2013, 11:04 AM

3. Maybe so, but the article mentions "strike" in the headline....

 

When the story is really about the NBA OWNERS LOCKING OUT the players. It wasn't a strike.

It serves to reinforce in peoples' minds that owners are always the victims when in fact they aren't.

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Response to IWelcome TheirHatred (Reply #3)

Thu Jan 3, 2013, 11:09 AM

6. It's really a business dispute between the player's cartel and the owner's cartel

Any resemblence between NBA players and normal union workers is purely fictional.

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Response to FarCenter (Reply #6)

Thu Jan 3, 2013, 01:23 PM

17. Can't argue with you on that one

 

Millionaires vs Billionaires

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Response to IWelcome TheirHatred (Reply #1)

Thu Jan 3, 2013, 11:08 AM

5. Very good point.

Lots of people don't give a shit about the difference.

ETA: Welcome to DU; love your username.

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Response to FarCenter (Original post)

Thu Jan 3, 2013, 11:07 AM

4. It may not affect cities, but work stoppages halt the incomes of a lot of support staff as well as

the players. "Good" is a relative term here.

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Response to FarCenter (Original post)

Thu Jan 3, 2013, 11:11 AM

7. Tell that to all the people that work

in and around the stadium in all sorts of jobs.

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Response to HappyMe (Reply #7)

Thu Jan 3, 2013, 11:29 AM

12. Per capita income increases city-wide, since fans spend money elsewhere with more local advantage.

Instead of funneling money into the pockets of team owners, players, TV networks, etc., who are outside of the metro area.

So while some employees of stadiums, concessionaires, etc. are clearly hurt, the effect is positive for workers generally in the metro area.

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Response to FarCenter (Reply #12)

Thu Jan 3, 2013, 11:45 AM

13. Well, if I had a job at a

stadium and it dried up, I wouldn't be spending money anywhere.

You have some beef with sports, I take it....

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Response to HappyMe (Reply #13)

Thu Jan 3, 2013, 12:07 PM

15. I have a beef with spending taxpayer money on sports

It is a very inefficient way to subsidize economic activity.

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Response to FarCenter (Reply #15)

Thu Jan 3, 2013, 12:21 PM

16. There's a lot worse things

that taxpayer dollars pay for. At least people enjoy watching sports.

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Response to FarCenter (Original post)

Thu Jan 3, 2013, 11:15 AM

8. Speculation VOID of Statistical Data

The Half-Brained writer of the article pulled that out of "Thin Air"

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Response to FreakinDJ (Reply #8)

Thu Jan 3, 2013, 11:27 AM

10. The Economic Consequences of Professional Sports Strikes and Lockouts

The Economic Consequences of Professional Sports Strikes and Lockouts
Dennis Coates
Brad R. Humphreys
University of Maryland Baltimore County
March 16, 2000

The NBA lockout of 1998-1999 resulted in the cancellation of a signi cant number of games.
According to the claims made by proponents of sports-driven economic growth, cities with NBA
franchises should experience signi cant negative economic losses from this work stoppage because
of the lost spending in and around basketball arenas during this event. Although it will be several
years before adequate data exist for a careful ex post evaluation of the e ects of the lockout, an
examination of the impact of past work stoppages in professional football and basketball can shed
some light on the potential impact of the NBA lockout as well as the viability of professional sports
as engines of economic growth in cities. The parameter estimates from a reduced form empirical
model of the determination of real per capita income in 37 SMSAs over the period 1969-1996 suggest
that prior work stoppages in professional football and baseball had no impact on the economies of
cities with franchises. Further, the departure of professional basketball from cities had no impact
on their economies in the following years. These results refute the idea that attracting professional
sports franchises represents a viable economic development strategy.

http://userpages.umbc.edu/~coates/work/lockout200.pdf

See paper for data.

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Response to FarCenter (Reply #10)

Thu Jan 3, 2013, 11:56 AM

14. I never did think professional sports

Contributed as much as we were told to a city'seconomy.

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Response to FarCenter (Original post)

Thu Jan 3, 2013, 11:23 AM

9. And everyone of these Billionaire White Men who own these trophy toys

insists on public funding, tax forgiveness, capital construction paid by the public all for the honor of the citizens to spend hundreds of dollars to take a family to catch a game...

Professional Sports is run by the Biggest Welfare Queens who see it fit to urge their congressmen to vote against any aide to the general populous.

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Response to FarCenter (Original post)

Thu Jan 3, 2013, 11:27 AM

11. My arse.

Columbus is taking a beating from the NHL lockout, especially the loss of the All-Star game.

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