The economic impact of major sports events : a review of ten events in the UK

Over recent years there has been a marked contrast between the discussions around the economic impact of major sports events in North America on the one hand and most of the rest of the world on the other. In the USA the sports strategies of cities in the USA have largely been based on infrastructure (stadium) investment for professional team sports, in particular, American football, baseball, basketball, and ice hockey. Over the last decade cities have offered greater and greater incentives for these professional teams to move from their existing host cities by offering to build a new stadium to house them. The teams sit back and let the host and competing cities bid up the price. They either move to the city offering the best deal or they accept the counter offer invariably put to them by their existing hosts. This normally involves the host city building a brand new stadium to replace the existing one which may only be ten or fifteen years old. The result is that at the end of the 1990s there were thirty major stadium construction projects in progress, around one-third of the total professional sports infrastructure, but over half of all professional teams in the USA have expressed dissatisfaction with their current facilities

Sport and economic regeneration in cities

Investment in sporting infrastructure in cities over the past 20 years was not primarily aimed at getting the local community involved in sport, but was instead aimed at attracting tourists,encouraging inward investment and changing the image of the city. The first example of this new strategy was seen in Sheffield with the investment of £147 million in sporting facilities to host the World Student Games of 1991. More recently, Manchester spent over £200 million on sporting venues in order to host the 2002 Commonwealth Games, with a further £470 million expenditure on other non-sport infrastructure investment in Sportcity in east Manchester. In the British context, most of the cities following this strategy of using sport for economic regeneration have been industrial cities, not normally known as major tourist destinations. The drivers of such policies were the need for a new image and new employment opportunities caused by the loss of their conventional industrial base. This article analyses the justification for such investments in sport in cities and assesses the evidence for the success of such strategies