Direct regional economic impact of Germany’s 1. FC Kaiserslautern through participation in the 1. Bundesliga |
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| Authors: | Thomas Könecke Holger Preuss Norbert Schütte |
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| Institution: | Department of Sport Economics, Sport Sociology and Sport History, Institute of Sport Science, Johannes Gutenberg University Mainz, Mainz, Germany |
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| Abstract: | In discussions about the use of public money for popular sports such as clubs in Germany’s 1. Bundesliga, it is often argued that the funds are well invested due to the cash flows generated by these organizations for their home regions. However, others claim the opposite. They argue that actually no positive impact is generated and, even worse, that money is leaving the region due to the clubs. The study presented here analyses the financial flows generated by the 1. FC Kaiserslautern for its home city (Kaiserslautern) and home state (Rhineland-Palatinate) during the 2010/11 season when the club participated in the 1. Bundesliga. Based on a 3-step model, the economic impact is calculated by considering spectator spending and cash flows generated by the business activities of the club. It turns out that additional cash flows of approximately €16.5 million and €25.8 million were generated for the state and the city, respectively. |
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