The Effects of Bringing an NBA Franchise to a City on Employment: A Case Study of Memphis, Oklahoma City, Orlando, Sacramento, and Salt Lake City

• Main Author: Shah, Ravi
• Format: Others
• Published: Scholarship @ Claremont 2018
• Subjects: Stadium; subsidies; economic impact; employment; Finance and Financial Management
• Online Access: http://scholarship.claremont.edu/cmc_theses/1847; http://scholarship.claremont.edu/cgi/viewcontent.cgi?article=3034&context=cmc_theses

This paper utilizes a case study approach to explain the impact of having a franchise from the National Basketball Association (NBA) move to a city where a team from the four major American sports league had not existed on employment levels. This paper utilizes the synthetic control method to examine employment in Memphis, Oklahoma City, Orlando, Sacramento, and Salt Lake City. Applying the synthetic control method, this paper finds that employment is not impacted positively as the stadium proposals suggest they will when putting forth subsidy bids. Due to the large costs imposed on taxpayers as a result of the subsidies franchises receive, further research should be conducted to look at the impact of spending on public expenditures instead of stadiums and its impact on employment levels.