Final answer:
Building a sports facility may not have the positive lasting economic impact that communities expect, instead, it can sometimes lead to spending that contracts the local economy. It's important to utilize the multiplier effect for proper analysis, but the benefits should be critically assessed for sustainability.
Step-by-step explanation:
The effect of building a sports facility that lasts for the community is often tied to the economic impact of such a project. According to the research by John Siegfried and Andrew Zimbalist, the anticipated job creation and business growth from attracting professional sports teams and building sports stadiums does not always materialize as expected. Instead, public financing for these facilities can sometimes lead to spending that causes the local economy to contract.
This counterintuitive outcome questions the effectiveness of sports stadiums as an economic development strategy. It is crucial to understand how the multiplier effect can be used to analyze such impacts, as it considers the direct, indirect, and induced economic activities generated from the initial investment. However, the actual long-term benefits to the community need careful assessment to ensure that public funds are used efficiently and lead to sustainable economic growth.