Inside the Economics of Spring Training

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March 24 (Bloomberg) -- University of South Florida Professor Philip Porter discusses the economics of baseball’s spring training on Bloomberg Television’s “Bloomberg Surveillance.” (Source: Bloomberg)

All this.

He is kind enough to join us this morning from tampa.

Dr.

porter, the county says it is worth it to spend hundreds of millions of dollars to bring the team in but your research suggests it is not correct.

Good morning.

Yes, that is what i found.

Why is that?

The county says we bring a lot of people, they come from ice cold places like minneapolis and boston and they spend a lot of money in our community, so it is a good thing.

Well, a couple of points are important.

First off, we never really found any evidence that ring training has much to do with the amount of spending that goes on in any location.

For example, we see teams moving around, so you can very easily look at a county and see whether or not the team comes to the county, do the sales go up, and if the team leads the county, does the sales go down.

And we have never really found real evidence.

But even if the claims of all these people coming are true, the amounts of tax revenue generated by the spending that the state claims is not enough to cover the operation and maintenance cost of the stadium.

And so, the purchase price of the stadium has to come from some other source.

People wonder why did they do it.

Is it something about baseball, is there something about sports that drives cities to build these palaces?

You know, i have always wrestled with that question.

It looks good.

A lot of people do come down there, and as you say, the stadiums are beautiful, and very modern and very chic and a lot of people come there at one point in time.

So it looks good.

But i think too much of politics is what looks good and not what israel.

So it is appearance of that i think politics are driven by.

Do we go from here to add additional sports palaces, or are the american taxpayer starting to get to the limit of what they will pay for these things?

I noticed an interesting trend in south florida, in miami and dade county.

They built a brand-new stadium for their baseball team, which is not necessarily the most favorite team -- they have a heat and the dolphins as well.

But they bill the marlins a baseball stadium and the marlins immediately cut their spending on players to the bone.

The team was abysmal this year, and the stadium is my -- has mired the city in debt.

They asked for funds to improve dolphins stadium and the legislature said no.

This text has been automatically generated. It may not be 100% accurate.

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