UNC Charlotte economist weighs in on economic impact of WTA Finals, headquarters move to Charlotte

Earlier this month, the Women’s Tennis Association announced that Charlotte will host the WTA Finals, the season-ending championship of women’s professional tennis, for a three-year run starting in 2027. The multiday event featuring the top women’s tennis players from around the world will be held at the Spectrum Center.

Additionally, the WTA announced plans to relocate its global headquarters to Charlotte and the opportunity for Charlotte to host an annual tournament, outside the WTA Finals, after 2029.

Craig Depken, department chair and professor of economics, and expert on the economic impact of sporting events, answered questions about this announcement and what it means for Charlotte hosting other large sporting events in the future.

How do economists measure the economic impact of a major event like the WTA Finals?

We focus on the net impacts of the event above and beyond what would have happened in a location had it not hosted the major event. This is different from other analyses, which tend to focus only on the total spending involved. Economists look at overall spending (often indirectly measured through sales tax revenues), hotel registrations and short-term rentals, and also at jobs created, per capita income, and business startups and closures.

What are the main economic benefits for a city hosting a multiday, global sporting event like the WTA Finals?

The main economic benefits come from outside visitors coming to the city for multiple days. This entails hotels or short-term rentals, food and hospitality services. There is a risk that a big event could replace other smaller events; for example, a state or regional conference might be displaced by a major sporting event like the WTA finals. However, previous research suggests that the multiday events generate the most net economic benefits.

In addition to the WTA Finals, the Women’s Tennis Association announced its global headquarters will relocate to Charlotte and a potential path forward to bring an annual WTA event to the city after 2029. What are the economic benefits related to those additional announcements?

Here the benefits are likely to be a bit smaller but more long term. When the headquarters relocates to Charlotte, this might entail some initial expenditure on the location (i.e., building, furniture) and also would lead to several new permanent jobs at the headquarters. Many of those jobs might be filled by people who will move with the headquarters, which would represent new people to the region. Bringing another multiday tennis event to the region would add additional spending in the travel and hospitality sectors.

What are the main costs associated with hosting an event of this scale?

It depends on the structure and location. There can be additional costs for first responders who are assigned to the venue and its surrounding areas. It’s possible that some people – who would have visited Charlotte or attended events here – go elsewhere because of the larger tennis event. Similarly, some people might opt to not visit Charlotte on a particular day or weekend should a large event such as a college football bowl game be scheduled at the same time.

What industries or businesses do you expect will benefit most from the WTA Finals?

Mainly those businesses in the hospitality and travel industry. There are potential benefits to local tourist attractions.

What does this announcement say about Charlotte’s capacity for hosting larger sporting events in the future?

I think the announcement shows that Charlotte is increasingly a strong location to host multiday sporting events that are different from those the region has hosted in the past, such as college basketball tournaments and NASCAR race weekends. Sport popularity is also cyclical (witness the changing popularity in NASCAR over the past 20 years), so diversifying into tennis is a validation of the Charlotte region’s strength in hosting such events.

Charlotte could clearly host a World Cup group-stage game. But hosting a Super Bowl or World Cup final is beyond Charlotte’s current capacity to meet the hotel and visitor demand associated with those events. While Charlotte has a world-class airport and a great road network that connects to all four points on the compass, the city is likely 10 to 20 years from having the infrastructure and hotel capacity to host an event of Super Bowl or World Cup final scale.

What makes Charlotte an attractive host city for major sporting events?

It is centrally located in a growing part of the country — five hours drive time from major population centers, a tremendous transportation network, a world-class airport, a growing hotel sector, world-recognized restaurants. All of these combine to make Charlotte a strong candidate to host major sporting events.

Written by: Andrew James and Craig Depken