also know, from our equation, that teams draw better in large metropolitan areas with new stadiums. Part of the reason for the poor performance of the relocation equation may be the number of expansion franchises in recent years. This suggests a different model for future research that will predict where a league will expand its membership.
Finally, we want to exercise a word of caution to city officials who see economic development and political gains from attracting new franchises. As others have noted, sports is just one of many entertainment outlets. Consultants' estimates of the multiplier effect of sports expenditures are frequently exaggerated. While making investments in new facilities may influence some team location decisions on the margin, we suspect these effects are small and the benefits are fleeting.