Professional sports and local economy

Professional sports and local economy


An intense relationship University of Santiago de Compostela Like every year at this point, the end of the sports seasons arrives, and with them the joys of the titles won, promotions to higher categories or of managing not to be relegated. We also witness dramas related to demotions. Beyond feelings (and these are a fundamental part when analyzing the relationship between economy and sport) there are very justified economic causes for the celebrations and dramas that accompany us at the end of competitions. Because sport is an industry that generates very relevant aggregate impacts, but, above all, because at the local level these impacts can have important knock-on effects. The economic dimension of sport cannot be understood without taking into account the local dimension, and regional science, in this sense, offers very useful instruments for quantifying these effects. Let’s take a concrete example.

Club Deportivo Lugo is a small

Club that has played in the second division of Spanish football for the last 11 years. In this a semi-professional category. CD Lugo, in 2021, presented operating income of 8 and a half million, with 75 employees in total. That is, it is a medium-sized company in relation to the typical size of companies  Switzerland Phone Number Data in the city. In this same season, another Galician club, from a city similar to Lugo in terms of size. Racing Club de Ferrol achieved promotion from the 1st RFEF to the Second Division, that is, it managed to make the leap to fully with a much more limited structure, with 35 employees in total.

The relegation of CD Lugo will surely force

It to adapt the size of its non-sports squad to the new category, and its turnover will also fall. Racing, on the other hand, will have to adapt its structure to the demands UK Phone Number List  of professional football and will increase its turnover. Both processes will have implications for the surrounding economy. And these implications will not be minor. In a work prepared a few years ago  quantified, through rigorous methodologies. Such as input-output analysis. on the number of clubs that play in professional football categories in each autonomous community. Table 1 shows the estimated impacts at the regional level,  Andalusia. In the Galician case, with three clubs in  jobs.

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