The novelty effect and on-field team performance in new sports facilities: the case of the Canadian Football League

Abstract

ABSTRACT When advocating for public funding assistance for new stadiums, franchise owners often employ the rationale of higher attendance and enhanced on-field team performance among other arguments. The Canadian Football League (CFL) has seen a number of large publicly funded facilities open over the last decade. In the present study, we empirically analyze seasonal attendance and on-field performance data from 1996 to 2019 to see whether these assertations can be supported. Results from a Tobit estimation (n = 203) reveal an increase in teams’ regular season home game attendance attributed to a 5-year long novelty effect. The results of Stochastic Frontier Model analysis (n = 136) indicate playing in new stadiums does not significantly affect team production efficiency. The findings of this study further contribute to our understanding of direct stadium impact for fans along with furthering our evidence in relation to owner behavior after moving into a new facility.