Gambling with Public Money: An Economic Analysis of National Sports Team Funding

Many governments across the world provide extensive funding to national sports teams and individual athletes in pursuit of success at international competitions such as the Olympic Games. One factor that motivates governments to fund national sports teams is the potential to exploit the elevation in nationalistic pride that attends international sporting success. Drawing on research in the psychology of sport, this article contends that politicians can access the 'reflective glow' of successful athletes for their political benefit. The statistical correlation between government funding and Olympic success is explored using the basic prisoners' dilemma to represent the decisions of two governments competing for sports success. While the analysis is simple, we argue that it sheds some light on recent examples and represents a first step in understanding this complex issue.'