From Scoreboards to Skylines: The Value of Sports in Cities

August 15, 2025

Sports aren't just games - they're economic engines, cultural landmarks, and community builders. Cities fight hard to keep (or lure) teams because the value extends far beyond the scoreboard. Whether it's the roar of the crowd on a cool October night or the quiet hum of a stadium district on non-game days, professional teams leave a lasting mark on the cities they call home.

Economic Impact

The economic contributions of sports teams extend far beyond ticket sales. A comprehensive study highlighted that small-market MLB teams like the Pittsburgh Pirates, Milwaukee Brewers, and Cincinnati Reds generate a significant economic footprint in their respective cities. For instance, the Pirates’ economic impact is estimated to be three times greater than that of the largest market teams in the country.

In Pittsburgh, the Pirates’ PNC Park attracts over 1.7 million visitors annually. More than 50% of these attendees travel from outside the city, with roughly 30% coming from out of state. These visitors contribute to the local economy through hotel stays, dining, and retail purchases. On average, an out-of-town couple attending a game spends about $505 per trip, while a local family of four spends around $385.

Furthermore, the presence of a sports team in a city generates a multiplier effect, where each dollar spent on tickets, concessions, and merchandise circulates through the local economy multiple times. For example, when a fan buys a game ticket, the money goes not only to the team but also indirectly to stadium employees, nearby restaurants, parking services, and retail shops. These recipients then spend a portion of their earnings locally, creating a ripple effect that amplifies the initial economic input. Studies of MLB cities have found that the total economic impact of a team can be 2 to 3 times the direct revenue generated, meaning a $50 million contribution in direct spending could translate into $100–$150 million in overall economic activity. This effect demonstrates how a baseball franchise can stimulate broader urban growth beyond the ballpark itself, supporting jobs, small businesses, and municipal revenues.

If that sounds confusing, allow me to simplify it. The key to the multiplier effect is that the money doesn't just stop after the first purchase, it gets spent multiple times, creating new rounds of economic activity. Direct spending on the team and local business leads to indirect spending on suppliers and employees, which creates induced spending where employees spend their income locally. These transactions generate tax revenue which is reinvested into city infrastructure, parks, and schools.

Social Impact

Beyond economic benefits, sports teams play a crucial role in fostering community spirit. Programs like the Orioles’ Reviving Baseball in Inner Cities (RBI) initiative aim to promote interest in the game, increase self-esteem among youth, and encourage them to stay in school and off the streets. Such community outreach programs have a lasting impact on the social fabric of cities.

Moreover, teams often engage in charitable activities, supporting local causes and contributing to the well-being of their communities. Athletes can become role models for children through these outreach programs. Furthermore, these efforts help build a strong sense of identity and pride among residents, helping to unify them.

Urban Revitalization

Sports stadiums often serve as anchors for urban redevelopment. The construction of new ballparks or the renovation of existing ones can lead to significant improvements in surrounding areas. For example, the development of the Power District in Salt Lake City, Utah, aims to create a vibrant mixed-use community centered around a proposed MLB stadium. This project is expected to generate substantial economic activity and enhance the city’s infrastructure.

Similarly, the relocation of the Oakland Athletics to Las Vegas involves the construction of a $1.75 billion domed stadium. This move is anticipated to revitalize the surrounding area, creating jobs and boosting local businesses.

Controversies

While the benefits are substantial, the development of sports facilities is not without controversy. Public subsidies for stadium construction have been a topic of debate, with critics arguing that the promised economic returns often fall short. A study from Miriam Solis and Aujean C. Lee examining stadium funding from 2000 to 2022 found that public subsidies for stadiums yielded few economic returns for localities, even when part of urban renewal initiatives. 

Additionally, the displacement of marginalized communities due to stadium development has raised concerns about gentrification and social equity. It’s essential for cities to carefully consider these factors when planning sports-related projects. 

Conclusion

In conclusion, sports teams offer more than just entertainment; they can be vital assets for urban development. Their potential economic contributions, role in neighborhood revitalization, and community engagement efforts underscore their importance in the modern cityscape. As cities continue to evolve, the strategic integration of sports teams into urban planning can lead to sustainable growth and a vibrant community - if it is done right.