The economic effects of the nba lockout

Founded init is currently composed of 31 teams: The Stanley Cup represents the league's championship, and is the oldest such trophy in North America; traditionally, each member of the championship team gets possession of Lord Stanley's Bowl for a day, and due to this has had some odd misadventures in its time. That being said, the league makes up for it by being extremely successful in the northern states and especially in Canada. The game rescheduled from which was cancelled due to the league lockout was held at the University of Michigan.

The economic effects of the nba lockout

Regular season games had been scheduled to start last week. Now all November games have been canceled. Conventional wisdom has it that the NBA lockout is bad news not only for basketball fans, but for all of us — another snag on our already suffering economy.

Without question, sporting events generate sizable, if often overstated, amounts of game-day spending in cities. So if these games are lost in a lockout, the thinking goes, NBA cities lose out on big money.

The empirical work of a few sports economists, however, has proven otherwise. For example, a study by University of Maryland-Baltimore County economists Dennis Coates and Brad Humphreys found that work stoppages in baseball and football between and — the NBA had experienced no labor disputes in that time period — had no impact on the economies of 37 metropolitan statistical areas with pro sports franchises.

In fact, the models showed that cities saw a very slight increase in real per capita income during years with a work stoppage.

Robert Baade, a sports economist from Lake Forest Ill. College, led a study that examined sales tax data in Florida. The study found that the lockouts and strikes since had no statistically significant effect on sales tax receipts in the metropolitan areas that house pro sports franchises.

The economic effects of the nba lockout

Why do lockouts seem to have no adverse impact? Instead of spending a fortune at the NBA arena, fans may go out to dinner, a movie, or a bowling alley, providing additional income for other local workers and business owners. Spending gets redistributed within a city during a work stoppage, but overall levels remain the same.

Second, as Coates and Humphreys point out in their paper, a reduction in public spending during a lockout can offset a drop in private spending. Without NBA games to obsess over, people will actually do their jobs.


Fewer such opportunities exist during sports strikes. Therefore, other things being equal, during these strikes one would observe higher productivity, production, and income. The lockout will do some damage.

On a more micro-level, arena support staff — the vendors, the concession-stand operators, the security guards, the ticket takers — will be out of work, at a time when low-skill workers are having trouble finding other employment. The burger joints and bars near the arenas will take a hit.

These adverse effects are very real, and should not be marginalized. Select individuals will suffer and will have to scramble.

But cities will survive without basketball. Find him on Twitter at seanmgregory. Subscribe Popular Among Subscribers.The National Basketball Association is the highest professional league of basketball in the United States and Canada.


They've been around in some fashion since Seasons are usually 82 games in length, with some rare exceptions note. The NBA has 30 . Nov 03,  · A week before the lockout began, the players offered a concession to drop their share from 57 percent to percent, which they estimated would reduce their take by $ million over the life of the agreement.

Last year, NBA teams collectively lost $ million, with 22 of 30 individual teams ending up in the red. Economic crisis such as the NBA lockout of Whether building an arena the economic impact of the nba lockout or hosting a team boosts a city's economy.

. This lesson was based on the day National Basketball Association lockout and its comprehensive economic impact. Students were asked to evaluate how the lockout impacted team owners, players, municipalities, team support staff, vendors, concession workers, security personnel, area restaurants and bars, and countless other individuals and organizations.

May 11,  · 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” (Coates & Humphreys). “Jobs and livelihoods are at stake in the NBA lockout, but in cities where the local NBA.

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NBA Effects on Economy