If You Rebuild It, Will They Come? The Impact of Renovated Sports Facilities on Total Revenue and Attendance

in Journal of Sport Management

Click name to view affiliation

Brian P. SoebbingUniversity of Alberta, Edmonton, AB, Canada

Search for other papers by Brian P. Soebbing in
Current site
Google Scholar
PubMed
Close
*
,
Chad S. SeifriedLouisiana State University, Baton Rouge, LA, USA

Search for other papers by Chad S. Seifried in
Current site
Google Scholar
PubMed
Close
, and
Patrick TutkaNiagara University, Lewiston, NY, USA

Search for other papers by Patrick Tutka in
Current site
Google Scholar
PubMed
Close
Restricted access

The novelty effect has a long history in sport facility research with most research examining new facility construction. The present study explores the impact of renovated facilities, specifically the novelty effect, as it pertains to revenue and secondarily attendance. Within, we also explore four different renovation types as classified by the U.S. National Registry of Historic Places to look at any individual impact or revelation using institutions participating in the National Collegiate Athletic Association Division I Football Bowl Subdivision. Results from ordinary least squares and Tobit estimations from a sample period covering 1993 through 2017 conclude a novelty effect associated with renovations does exist for attendance. However, the effect is shorter in duration and delayed by a few seasons based upon the type of renovation. As for revenues, we find some positive impact on revenues. Those impacts are delayed are on based on certain types of renovation.

  • Collapse
  • Expand
  • Borland, J., & Macdonald, R. (2003). Demand and sport. Oxford Review of Economic Policy, 19(4), 478502. https://doi.org/10.1093/oxrep/19.4.478

  • Buraimo, B., & Simmons, R. (2008). Do sports fans really value uncertainty of outcome? Evidence from the English Premier League. International Journal of Sport Finance, 3, 146155.

    • Search Google Scholar
    • Export Citation
  • Cho, H., Joo, D., Moore, D., & Norman, W.C. (2019). Sport tourists’ nostalgia and its effect on attitude and intentions: A multilevel approach. Tourism Management Perspectives, 32, Article 100563. https://doi.org/10.1016/j.tmp.2019.100563

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Clapp, C.M., & Hakes, J.K. (2005). How long a honeymoon? The effect of new stadiums on attendance in Major League Baseball. Journal of Sports Economics, 6(3), 237263. https://doi.org/10.1177/1527002504265957

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Coates, D., & Humphreys, B.R. (2005). Novelty effects of new facilities on attendance at professional sporting events. Contemporary Economic Policy, 23(3), 436455. https://doi.org/10.1093/cep/byi033

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Decker, S. (2013). The silence of the archives: Business history, post-colonialism, and archival ethnography. Management & Organizational History, 8(2), 155173. https://doi.org/10.1080/17449359.2012.761491

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Demiris, T., & Seifried, C. (2022). A historical study of the path from off-campus to on-campus stadia. Journal of Issues in Intercollegiate Athletics, 15, 5074.

    • Search Google Scholar
    • Export Citation
  • Dober, R.P. (2008). The three thousand decisions. Planning for Higher Education, 36, 7074.

  • Energy efficiency and sustainable design standards for new Federal buildings. (2010, May 28). Federal Register, 75, 2993329947.

  • Falls, G.A., & Natke, P.A. (2014). College football attendance: A panel study of the football bowl subdivision. Applied Economics, 46(10), 10931107. https://doi.org/10.1080/00036846.2013.866208

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Feddersen, A., & Maennig, W. (2009). Arenas versus multifunctional stadiums: Which do spectators prefer? Journal of Sports Economics, 10(2), 180191. https://doi.org/10.1177/1527002508323821

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Feddersen, A., Maennig, W., & Borcherding, M. (2006). The novelty effect of new soccer stadia: The case of Germany. International Journal of Sport Finance, 1, 174188.

    • Search Google Scholar
    • Export Citation
  • Foster, W.M., & Hyatt, C.G. (2008). Inventing team tradition: A conceptual model for the strategic development of fan nations. European Sport Management Quarterly, 8(3), 265287. https://doi.org/10.1080/16184740802224183

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Gaul, G.M. (2015). Billion-dollar ball: A journey through the big-money culture of college football. Viking.

  • Gitter, S.R., & Rhoads, T.A. (2014). Stadium construction and minor league baseball attendance. Contemporary Economic Policy, 32(1), 144154. https://doi.org/10.1111/coep.12016

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Gustafson, E., & Hadley, L. (2007). Revenue, population, and competitive balance in Major League Baseball. Contemporary Economic Policy, 25(2), 250261. https://doi.org/10.1111/j.1465-7287.2007.00036.x

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Hong, S., Mondello, M., & Coates, D. (2013). An examination of the effects of the recent economic crisis on Major League Baseball attendance demand. International Journal of Sport Finance, 8, 140156.

    • Search Google Scholar
    • Export Citation
  • Huang, Y., & Soebbing, B.P. (2022). The novelty effect and on-field team performance in new sports facilities: The case of the Canadian Football League. Sport Management Review, 25(1), 188205. https://doi.org/10.1080/14413523.2021.1908763

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Ingrassia, B.M. (2012). The rise of Gridiron University. University Press of Kansas.

  • Matheson, V.A., O’Connor, D.J., & Herberger, J.H. (2012). The bottom line: Accounting for revenues and expenditures in intercollegiate athletics. International Journal of Sport Finance, 7, 3045.

    • Search Google Scholar
    • Export Citation
  • Maxcy, J.G., & Larson, D.J. (2015). Reversal of fortune of glaring misallocation: Is a new football stadium worth the cost to a university? International Journal of Sport Finance, 10, 6286.

    • Search Google Scholar
    • Export Citation
  • Noll, R.G. (1974). Attendance and price setting. In R.G. Noll (Ed.), Government and the sports business (pp. 115157). Brookings Institution Press.

    • Search Google Scholar
    • Export Citation
  • Oriard, M. (2005). King football. University of North Carolina Press.

  • Pfleegor, A.G., & Seifried, C.S. (2014). Preserving sport and recreation facilities through the ‘rehabilitation’ of building codes. International Journal of Sport Management and Marketing, 15(1–2), 118. https://doi.org/10.1504/IJSMM.2014.069082

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Pfleegor, A.G., & Seifried, C.S. (2015). Mississippi State’s Davis Wade Stadium: The modernization of a football stadium. Journal of Mississippi History, 77, 147176.

    • Search Google Scholar
    • Export Citation
  • Pfleegor, A.G., Seifried, C.S., & Soebbing, B.P. (2013). The moral obligation to preserve heritage through sport and recreation venues. Sport Management Review, 16(3), 378387. https://doi.org/10.1016/j.smr.2012.10.002

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Popp, N., Richards, J., & Weight, E. (2018). Measuring the impact of a significant college baseball stadium project on recruiting, on-field success, and fan attendance. Journal of Contemporary Athletics, 12(3), 175188.

    • Search Google Scholar
    • Export Citation
  • Propheter, G. (2015). Frequency and attendance at popular music concerts in the USA: Does facility age matter? Cultural Trends, 24(4), 310319. https://doi.org/10.1080/09548963.2015.1088122

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Regulations Related to Public Welfare: Terms, 45 C.F.R. § 1305.2 (2022).

  • Sanderson, A.R. (2000). In defense of new sports stadiums, ballparks, and arenas. Marquette Sports Law Journal, 10, 173192.

  • Schreyer, D., & Ansari, P. (2022). Stadium attendance demand research: A scoping review. Journal of Sports Economics, 23(6), 749788. https://doi.org/10.1177/15270025211000404

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Seifried, C.S. (2010). Introducing and analyzing historical methodology for sport management studies. International Journal of Sport Management, 11(4), 121.

    • Search Google Scholar
    • Export Citation
  • Seifried, C.S. (2016). The development of Death Valley in Louisiana: The modernization of Tiger Stadium. Louisiana History, 57, 184219.

    • Search Google Scholar
    • Export Citation
  • Seifried, C.S. (2017). Peer reviewing historical research for sport management: It’s not qualitative research! International Journal of Sport Management, 18, 461487.

    • Search Google Scholar
    • Export Citation
  • Seifried, C.S., Demiris, T., & Petersen, J. (2021). Baylor University’s football stadia: Life before McLane Stadium. Sport History Review, 52(1), 7089. https://doi.org/10.1123/shr.2020-0020.

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Seifried, C.S., Evans, J., & Mosso, A. (2018). Renown to rubble: The rise and fall of Pitt Stadium 1925–1999. Journal of Issues in Intercollegiate Athletics, 11, 5175.

    • Search Google Scholar
    • Export Citation
  • Seifried, C.S., Faulkner, C., Baker, S., & Piker, J. (2016). The development of Razorback and war memorial stadiums. Arkansas Historical Quarterly, 75(3), 124.

    • Search Google Scholar
    • Export Citation
  • Seifried, C.S., & Kellison, T. (2019). The modernization of grant field at bobby dodd stadium. The Georgia Historical Quarterly, 103(2), 94126.

    • Search Google Scholar
    • Export Citation
  • Seifried, C.S., & King, B. (2012). Examining the history of division I (FBS) bowl payouts. Sport History Review, 43(2), 206228. https://doi.org/10.1123/shr.43.2.206

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Seifried, C.S., & Meyer, K. (2010). Nostalgia-related aspects of professional sport facilities. International Journal of Sport Management Recreation and Tourism, 5, 5176. https://doi.org/10.5199/ijsmart-1791-874X-5c

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Seifried, C.S., & Novicevic, M.M. (2015). Vaught-Hemingway stadium at Hollingsworth field and ole miss: 100 years in the making. Journal of Mississippi History, 77, 115146.

    • Search Google Scholar
    • Export Citation
  • Seifried, C.S., Soebbing, B.P., & Agyemang, K. (2019). The impact of interorganizational relationships on an uncertain industry. Journal of Sport Management, 33(4), 317330. https://doi.org/10.1123/jsm.2018-0183

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Smith, R.A. (2008). Far more than commercialism: Stadium building from Harvard’s innovations to Stanford’s ‘dirt bowl’. The International Journal of the History of Sport, 25(11), 14531474. https://doi.org/10.1080/09523360802299211

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Soebbing, B.P., Mason, D.S., & Humphreys, B.R. (2016). Novelty effects and sports facilities in smaller cities: Evidence from Canadian hockey arenas. Urban Studies, 53(8), 16741690. https://doi.org/10.1177/0042098015576862

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Toma, J.D. (2003). Football U: Spectator sports in the life of the American University. University of Michigan Press.

  • Tutka, P. (2016). An ideal-type through innovation diffusion: Recording the construction history of football stadiums in the National Collegiate Athletic Association Division I Football Bowl Subdivision [Doctoral dissertation]. Louisiana State University. https://digitalcommons.lsu.edu/

    • Search Google Scholar
    • Export Citation
  • Tutka, P., & Seifried, C.S. (2020). An innovation diffusion ideal-type on the history of American college football stadia. Journal of Issues in Intercollegiate Athletics, 13, 312326.

    • Search Google Scholar
    • Export Citation
  • Wanless, L., & Stinson, J.L. (2020). A contemporary functional form for NCAA division I FBS contributions: Internal and external considerations. Journal of Sport Management, 34(1), 2237. https://doi.org/10.1123/jsm.2019-0036

    • Crossref
    • Search Google Scholar
    • Export Citation
  • Watterson, J.S. (2000). College football: History, spectacle, controversy. JHU Press.

  • Weeks, K.D., & Grimmer, A.E. (1995). The Secretary of the Interior standards for the treatment of historic properties with guidelines for preserving, rehabilitating, restoring, & reconstructing historic buildings. U.S. Department of the Interior, National Park Service Heritage Preservation Program.

    • Search Google Scholar
    • Export Citation
All Time Past Year Past 30 Days
Abstract Views 333 333 83
Full Text Views 25 25 6
PDF Downloads 40 40 9