If You Rebuild It, Will They Come? The Impact of Renovated Sports Facilities on Total Revenue and Attendance

The novelty effect has a long history in sport facility research with most research examining new facility construction. The present study explores the impact of renovated facilities, specifically the novelty effect, as it pertains to revenue and secondarily attendance. Within, we also explore four different renovation types as classified by the U.S. National Registry of Historic Places to look at any individual impact or revelation using institutions participating in the National Collegiate Athletic Association Division I Football Bowl Subdivision. Results from ordinary least squares and Tobit estimations from a sample period covering 1993 through 2017 conclude a novelty effect associated with renovations does exist for attendance. However, the effect is shorter in duration and delayed by a few seasons based upon the type of renovation. As for revenues, we find some positive impact on revenues. Those impacts are delayed are on based on certain types of renovation.