No Foul

The NBA lockout will have limited economic impact

The prospect that the NBA lockout could extend to a full season seems like bad news for the economy as well as for fans. Games have already been canceled through November. But a 2000 study of past labor disputes found no impact on 37 metro economies with pro-sports franchises. In fact, cities appeared to perform better in years games were canceled.

How so? Sporting events are just one option for people spending entertainment dollars. Without sports, fans tended to spend their money at restaurants or movie theaters. University of Maryland at Baltimore County economists Dennis Coates and Brad Humphreys, authors of...

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