October 23, 2017 6:07 pm
Updated: October 23, 2017 7:32 pm

Sports economist throws cold water on new arena, Olympic bid for Calgary

WATCH: To build or not to build a new arena? To bid or not to bid on the 2026 Olympic Games? An American expert on sports economics says it probably doesn’t make economic sense to pursue either venture. David Boushy explains.

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An American expert on sports economics told a Calgary crowd Monday it’s hard to justify the cost of building a new arena when you consider tangible factors like employment and taxes, and intangible benefits like civic pride.

READ MORE: Few Calgarians focusing on arena debate, more on taxes, money management: poll

Brad Humphreys, a professor of economics at West Virginia University, was speaking at a University of Calgary School of Public Policy luncheon.

“There’s not a huge amount of evidence supporting the idea that professional sports or mega events are huge drivers of local economic conditions,” Humphreys said.

American sports economics expert Brad Humphreys told a University of Calgary School of Public Policy luncheon it’s hard to justify the cost of building a new arena.

Global News

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On the subject of a new arena, which has divided Calgarians, Humphreys said even the intangible benefits — when calculated — don’t add up to much.

“Twenty to $30 million a year, if we can put a dollar value on those intangibles,” he said.

READ MORE: Rachel Notley staying away from Calgary arena debate

Humphreys said mega projects, like hosting the Olympics in 2026, are also hard to justify – something he blames on the process the International Olympic Committee (IOC) uses to choose bid cities.

“The IOC has never played fair with cities that want to bid for the Olympics. The IOC is going to get the most the IOC can get out of a city.”

“They allocate the Games by making cities bid against one another to host the Games, and that drives up the cost, and that’s why we see these cost overruns,” Humphreys said.

READ MORE: Flames put Calgary on map but Ottawa staying out of arena fight – sport minister

Humphreys admitted having legacy venues like the Olympic Oval and Canmore Nordic Centre that are still operational could give Calgary some additional leverage in a bid.

The West Virginia professor, who previously spent six years at the University of Alberta, has examined the experience of past Olympic cities. He said most of them incurred cost overruns.

© 2017 Global News, a division of Corus Entertainment Inc.

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