Sports Stadiums and Local Economic Activity: Evidence from Sales Tax Collections

Abstract

This analysis examines the economic ramifications of a professional baseball team relocation from downtown Atlanta to a new mixed-use stadium development in suburban Cobb County. Using the synthetic control method, the study employs metro-Atlanta counties to construct a counterfactual outcome for estimating changes in sales tax revenue after the ballpark opened. The findings indicate a net increase in taxable sales in the county; however, the magnitude is small and not statistically significant. Though an influx of net new spending is evident, approximately one-third of the project’s sales derive from crowding out other local economic activity. In total, added tax collections fall well short of covering the public subsidies that fund the stadium.