Is there an economic value for elite sports? : The case of Swedish Hockey League

Sammanfattning: The economic value of sport has long been an interesting subject to study. Proponents arguing there is big monetary return for a region hosting a professional sports team. However, majority of studies done on the subject point in the same direction where it seems economic return are negligible. Researchers even argue there is rather an alternative cost where money could be better spent on other social structure such as education and health care. The value of sport creates both direct and indirect effect. In this essay I will look at whether there could be any indirect spillover effects from hosting a hockey team in the highest league. Due to its simplicity, a difference-in-difference (DiD) method will be used on municipalities hosting a hockey team. This when looking at Gross Regional Product (GRP), unemployment rate and population growth to municipalities without a hockey team. The results of this study are ambiguous and hard to interpret when sign on coefficient differ between variables and municipalities. However, there seem to be a correlation between lower unemployment rate and population growth and an increase in GRP when a team is qualifying to SHL. It cannot be determined whether this depend on economic growth or success of their professional sports team.