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Thursday, March 20, 2008
'March Madness' Host Cities Should Cheer for Away Teams, Economists Say
By Kathryn Glass
FOXBusiness
The thrill of getting to watch March Madness firsthand is undoubtedly a fun and exciting event for the residents of any
city. But when city officials argue that hosting the NCAA tournament will bring economic benefits, sports economists take
exception.
Circumstances have to be just so for host cities to make money—and those circumstances usually do not include having local
teams compete close to home.
“My personal research has shown that in general, mega events don’t result in big returns back to host cities, and that the
impact is not as great as the boosters suggest,” said Victor Matheson, a sports economist at Holy Cross University who has
studied the economic impact of the NCAA tournament.
For cities, hosting an NCAA tournament sounds like a dream. Games are typically played in front of sold-out crowds and the
ample TV coverage the tournament attracts can generate lots of positive press. Couple those benefits with the characteristic
frenetic energy that defines the first couple of rounds of March Madness and it’s easy to see why host cities think they’re
getting a sweet deal.
Cities that have hosted the first two rounds of the tournament say the competitive energy is palpable--especially if they’re
lucky enough to host a team that’s playing close to home.
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