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The economic importance of sport
The economic importance of sport
The economic importance of sport
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Professional sports teams have a whole economic system within them. Sports produce so much money off of their athletes and the games that they have to keep up with what the people want, so that they will continue to have money coming in. Sports provide temporary stress relief for a lot of people who watch sports. People love sports so much that they are willing to spend allot of money on them. Most people who aren’t able to actually fly out and watch sports watch them on television. Other people actually pay to go to games, and sometimes fly out to games far away from home. This shows how much people love games. People love games enough to spend a lot of money just to watch them. People of course expect to see a good game, and that’s why they pay to see elite athletes. …show more content…
This causes more problems for the poor people in certain areas. This causes more problems for the poor because they are displaced, and property values are also raised by a large amount. Since property values are raised, low cost housing is also reduced (Eitzen, 1996). This makes low-income people and family’s life more difficult because they are limited opportunities on a place to live that is within their budget. Cities have different options on the payment of professional teams. Professional teams can get paid by the public, have city ownership, and they can also get out of the professional team business (Eitzen, 1996). If cities decided to get out of the professional team business, they would be safe from the negative effects of stadiums and arenas being built (Eitzen, 1996). New arenas and stadiums may bring in a lot of money for the teams and owners, but it causes a lot of issues for communities and poor people. Not only does it take money away from the poor but it also takes allot of money away from the children who need more school supplies because money is taken away from the schools in
Economic Theory Labor market theory is one of the most integral economic theories needed to dissect the inefficiencies in professional sports. Looking first at the type of market these leagues function in, one can see that they do not necessarily meet all the criteria that a competitive market requires. The big four sports leagues in the US have a set number of teams, which creates barriers to entry. Only when an expansion is agreed upon by the league, such as NHL has done for the upcoming season, are teams allowed to enter, and even then, it is limited to a maximum of a few teams in recent history. Additionally, the league makes it virtually impossible to exit, as selling a team is the closest they come to exiting the market.
Elite Sports Players are entertainers; they put people in the stands. They sell tickets, thus, they make money. Also, outside of a team's franchise, they also promote endor...
The sports franchise gains by reducing the amount of capital that it has to spend in building the new stadium. They receive a new stadium with more seats and therefore they receive more profit. The local businesses gain financially as well with increased traffic of fans who come to the games. More fans means more meals, rooms, and souvenirs sold. In addition, as least at the beginning of the project more construction jobs are created in order to build the new stadium and possibly new jobs are created at the stadium itself. The elected officials is motivated by receiving a good track record of successful referendums, by trying to sell the stadium to the public as something they should really want in their communities. The people who are losing through the outcomes of the new stadiums are those who do not want one in their community. Perhaps people who do not like sports and will never attend a game or people who do not appreciate the added traffic on the roads on game days. These people are forced into paying for something they will never use as well as something they may despise and the added traffic they have to deal with is a nuisance to
Siegfried, J., & Zimbalist, A. (2000). The economics of sports facilities and their communities. The Journal of Economic Perspectives, , 95-114.
The focus of professional sports has evolved from one of teamwork and camaraderie to one of avarice and greed. The specific problems in recent years that have stemmed off this overwhelming greed include exorbitant salaries, lockouts (or work stoppages) in professional sports, and the growing disparity among team payrolls. Most recognize these issues as major problems; however, others overlook the greed and see validity in the financial aspect of today's sports world. They argue that professional sports are thriving and should not be modified.
When looking into the history of our culture, there are many subtopics that fall under the word, “history.” Topics such as arts and literature, food, and media fall into place. Among these topics reside sports. Since the beginning of time, sports have persisted as an activity intertwined with the daily life of people. Whether it is a pick-up game of football in the backyard, or catching an evening game at the local stadium, sports have become the national pastime. According to Marcus Jansen of the Sign Post, more specifically, baseball is America’s national pastime, competing with other sports (Jansen 1). Providing the entertainment that Americans pay top dollar for, live the role models, superstars, and celebrities that put on a jersey as their job. As said in an article by Lucas Reilly, Americans spend close to $25.4 billion dollars on professional sports (Reilly 4). The people that many children want to be when they grow up are not the firefighters or astronauts told about in bed time stories. These dream jobs or fantasies have become swinging a bat or tossing a football in front of millions of screaming fans. When asked why so many dream of having such job, the majority will respond with a salary related answer. In today’s day and age, the average athlete is paid more than our own president. The cold hard facts show that in professional sports, the circulation of money is endless. Certain teams in professional baseball and football are worth over millions of dollars. Consequently, the teams who are worth more are able to spend more. The issue that arises with this philosophy is virtually how much more? League managers, team owners and other sports officials have sought out a solution to the surfacing problem. Is it fair to let...
Sports bring friends, family and our country together more so than political debates or even church on Sunday. Whether it be football, basketball, baseball or everything in between everyone has their favorite team that they cheer for regardless if they are the shits or number one. Americans will have gatherings of their friends every week of the season to watch games and “support” their teams from hundreds of miles away. Sports have an enormous impact on our society in every way shape and form, whether it is kids pretending to be their favorite super star while playing in the yard or it is co-workers participating in fantasy sports or making March Madness brackets, but which is the most entertaining, is it the professionals that are paid millions of dollars to play or college kids struggling to get by while trying to earn an education?
I have decided to write a response paper to Ekow N. Yankah’s: “Why N.C.A.A. Athletes Shouldn’t Be Paid”. Although I enjoyed reading his perspective, I do not agree with his statement which addresses that student-athletes shouldn 't get paid. Universities are using their student-athlete’s popularity to promote their athletics program while the student-athletes are unable to promote their own image. Student-athletes work hard day in and day out, basically like having a full time job. Which makes time is also very limited during the day for student athletes to get a real job to pay for the extra expenses that they need. Also, most of the time coaches will not allow the student athletes to work, because of their conflicting schedules with practice.
Area political leaders, local community heads as well as owners of professional sports franchise sometimes claim that a pro sports stadium and teams are vital sources of positive economic growth in urban areas. Even though most of the stadiums and franchises supposedly donate a whole lot of money for providing new jobs, and to also provide the justification for millions of dollars ranging in the hundreds for public subsidies for the building of an assortment of new pro sports teams in the U.S. over the past ten years. Even with the outrage, some numbers crunchers have found no evidence of a positive economic impact of professional sports teams and facilities on urban economies "It's a zero-sum game," Rolnick said. "In fact, it can be a negative-sum game.”
Abstract: The Stadium construction boom continues, and taxpayers are being forced to pay for new high tech stadiums they don’t want. These new stadiums create only part-time jobs. Stadiums bring money in exclusively for professional leagues and not the communities. The teams are turning public money into private profit. Professional leagues are becoming extremely wealthy at the taxpayers expense. The publicly-funded stadium obsession must be put to a stop before athletes and coaches become even greedier. New stadiums being built hurt public schools, and send a message to children that leisure activities are more important than basic education. Public money needs to be used to for more important services that would benefit the local economy. Stadiums do not help the economy or save struggling towns. There are no net benefits from single purpose stadiums, and therefore the stadium obsessions must be put to a stop.
These games bring in increased revenue for the city. This allows the host city to use its attractions; restaurants raise their prices as they gain more visitors, stores see an increase of consumers as well. The games put these cities in the eye of the public, even though it’s only for one night. According to Jeremy Savitz (2014) every home game for Ohio State brings in about 7.15 million dollars. Now the city and college have a little more money that they can put towards town repairs, new buildings, and new programs, which creates more jobs. Let’s address the elephant in the room, the Texas A&M Aggies. If the games were moved from Brazos County, TX then they would immediately lose $63 million for the one season. They will also lose $2.8 million in local taxes. $21 million in household income will be forfeited, and more importantly, Brazos County will lose 955 jobs if they were to cut the sport or move it (Oxford Economics, 2012). College football helps with the economy of its
"Money makes the world go 'round." Sports could not exist without the presence of money. You have high paid athletes asking for multi-million dollar contacts, while at the same time you have doctors not even making close to that amount. There are corporations buying out sports teams, buying stadiums, and buying everything that has to do with sports. Someone may ask why they do this. Sports are one of the most profitable industries in the world. Everyone wants to get their hand on a piece of the action. Those individuals and industries that spend hundreds of millions of dollars on these sports teams are hoping to make a profit, but it may be an indirect profit. It could be a profit for the sports club, or it could be a promotion for another organization (i.e. Rupert Murdoch, FOX). The economics involved with sports has drastically changed over the last ten years. In the United States, we spend about 13% of all money on sports and entertainment. Sports has obviously done its job; entertained and drained money out of our pockets.
This not just a hidden issue in some professional sports; it relates to all of them. It is possible for American professional sports leagues to pay entirely for their own stadiums but the generated profit from said stadium is nowhere near worth the cost. Because of this, it is seen frequently where public subsidies are given for sports facilities. By promising huge return profits in the form of economic development for the public, these sports franchises are able to take taxpayer funding in order to build and maintain their stadiums. Leading sports economists state that arenas and stadiums leave cities and states in enormous amounts of debts due to the fact that they rarely bring in the promised success which in turn causes the franchise to beg for more money.
Bissinger states in his essay that local high schools these days are spending millions of dollars on things such as elaborate stadiums, gymnasiums and even chartered planes to transport their team to big play-off championship games. In the past, schools would sponsor fundraisers to RAISE the money for these t...
A recent article in Readers Digest estimates that most Americans spend at least 13% of their income on sporting events and sport related products. Sports has entertained American people and drained money out of their pockets making sporting events an arena of pure economic activity. It has been proven that Americans will purchase tickets to attend sporting events, but this alone does not create enough revenue to keep sports teams profitable.