Stadium financing, usage and the impact of institutional change on consumer demand: the case of VFL Park, 1970-1986

Vinod Mishra, Luc Borrowman, Lionel Frost, Abdel K. Halabi

Research output: Contribution to journalArticleResearchpeer-review

Abstract

Ownership, financing, and usage of stadiums are key issues that affect the commercial operations of sports leagues. Stadiums that are owned by leagues may generate deadweight losses if they are not used to full capacity. We (1) model demand to measure the impact of the Victorian Football League building a privately-funded stadium (VFL Park); (2) then use counterfactual scenarios to estimate social saving from different venues and playing days, and determine whether further welfare gains would have been possible. VFL Park provided greater control over revenue, but further institutional change was needed to fully exploit potential commercial gains from the stadium.

Original languageEnglish
Pages (from-to)94-116
Number of pages23
JournalAsia-Pacific Economic History Review
Volume63
Issue number1
DOIs
Publication statusPublished - Mar 2023

Keywords

  • Australian rules football
  • institutional change
  • revenue management
  • social saving
  • stadium economics

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