The Economic Impacts of Major Sporting Events Essay

The Economic Impacts of Major Sporting Events - Essay Example There are disagreements as well about the relevant economic factors that should be included in the measurements. This paper presents three extensively criticised, but widely used, models of economic impact analysis, namely, (1) social value, (2) economic multipliers, and (3) input-output paradigm. In order to explain the arguments more clearly the discussion includes research findings or case studies on previous sporting events, such as the World Cup and Olympics. Introduction Several economists observe sizeable economic gains from events occurring from the incentives they confer to businesses. State funding of sporting events, though they are unstable, is usually rationalised by the argument that the events generate economic gains for the areas, where in they are held, but that these gains are not completely supported by the economic feasibility of the event itself (Hall 1994). The financial evaluation of the effect of sporting events on the economy is at the root of contentious dis agreements among economists. According to Dwyer and colleagues (2005), arguments put emphasis at the same time on what should be assessed or calculated, and on the best technique for analysing the economic impacts of large-scale sporting events on the community that hosted it. It appears that there is frequently uncertainty between the economic productivity and economic effect of major sporting events. ... The Nature and Economy of Sporting Events Sporting event as a sector of the economy is huge. In the United States, sport was one of its biggest industries in 1995. Moreover, in 1996, the sport sector was measured to be around $100 billion annually, and forecasted to be worth $139 billion by 2000. In 1997, soccer was measured to be $10 billion in Europe (Forster & Pope 2004, 1). This appears likely to be a stark miscalculation when very few associations separately yield roughly $100 million yearly. In 1995, the British Sports Council calculated that it comprises 2.5% of global trade. This number comprises intangibles like royalties and revenues and physical commodities like facilities. There are additional statistics, all inherently incongruent (Forster & Pope 2004, 1). Sporting events yield roughly 1% of local ‘value-added’ and around 1 ?% of employment in the UK. The US Tennis Open in 2000 produced $699 million to the economy of New York (Forster & Pope 2004, 2). Howeve r, the dilemma is that these statistics merely provide peeks of different components of sport. According to Statistics Canada (Forster & Pope 2004, 2): ... the amount of sport data currently available is insufficient to provide a comprehensive profile of the nature, benefits and value of sport... the data that are available are difficult to compare due to conceptual and definitional differences. Sporting events are a branch of what is termed the ‘weightless economy’. For several grounds that are in conflict material physical production has dropped substantially as GDP percentage across the globe—thus the concept of ‘weightless economy’ (Shin 2010, 105). Alan Greenspan focused on the IT sector but a broad transition from