What is the Value of Public Goods Generated by a National Football League Team: A CVM Approach

Abstract

Using the Contingent Valuation Method, this paper estimates the value of public goods the National Football League’s Jaguars produce for Jacksonville, Florida, including the value of elevating Jacksonville to major league status. It also estimates the incremental value of public goods potentially produced by a National Basketball Association team in Jacksonville. The present value of public goods created by the Jaguars is $25 million or less, far below subsidies provided to attract the Jaguars. For a basketball team, the figure is less than$12.7 million. Sports public goods probably cannot justify the large public expenditures on stadiums and arenas.