The Effects of Sports Teams and Stadiums on Cities
What if a tax increase came to a city because of a sports team, would it be alright? Of course not, right? Well, consider being told as a tax payer and being told it will help the economy of city to build a stadium. However, a tax increase is never highly looked upon, and large companies sell extraordinary economic growth, and cannot produce the promise.
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.”
First of all the stadiums and the teams always seem to be a great contender for positive economic development jobs focusing on helping the economic growth of a city. However, this is different from other economic improvement devices like tax credit, sports stadiums, soccer pi...
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...the citizens of the city socially. It will provide a great night life, as well as other entertainment venues that can be brought in for use of the stadium. However to sell a stadium in a city by claiming economic benefits involves many risks, it will most likely not benefit the city and its people to have a sports team in your city.
References
"Stadium numbers don't add up for Fed economist." St. Paul Legal Ledger (April 29, 2004): NA. General OneFile. Gale. Apollo Library. 19 May 2008
"Economic Development. (From the Library)." Government Finance Review 17.6 (Dec 2001): 58(1). General OneFile. Gale. Apollo Library. 19 May 2008 ..
Ultimately, there are three exceptionally important criteria for deciding on good candidate for an expansion team. The first criterion is that the stadium must be controlled or owned by the baseball team. The stadium is a crucial aspect because most of the team’s revenue is generated in relation to the stadium. This stadium revenue comprises of ticket sales, parking, merchandise and concessions. Thus, without a stadium, the team will not be able to generate a stable source of revenue. The second criterion is that local ownership must have strong roots within the community. Without ties to the community, fan attendance could decrease. This is because fans could eventually perceive that the owner(s)’s only goal for the MLB franchise was to be profitable. The third criterion is the city must have long-term political support in the community. It is vital to have political support in order to gain financial support throughout the team’s years of existence, especially in tax payer monies. Particularly, this is significant when the team experiences issues or fights that involve the stadium and the land around the stadium. If there is a lack of political support, the expansion teams will not be able to obtain enough for money for stadium renovations, repairs, or to build new stadiums for the same team within the same city. This circumstance was apparent when the New York Yankees used tax revenue generated by New York City to fund the building of their brand new stadium for the 2009 season. Therefore, expansion committees believe it is necessary to confirm that the prospective cities will have enough political support because this political factor will help stabilize and financially support the prosp...
The creation of the Oklahoma City Thunder has had huge economic effects on the local and state economies. According to the Oklahoma City Chamber of Commerce, each thunder home game puts $1.3 million dollars into the local economy, every season there are 41 home games, which equals around $53.3 million dollars per season. Jordan Wiley, general manager of Leon’s on Brookside, says “Thunder games have created a generous boost in sales…Thunder games held on weekends can double sales. A Thunder game held during the week can triple sales. (...
Income for the above would be approximately proportional to the number of people in the stadium.
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.
Author Unknown (1994). The Federal Reserve System: Purposes and Functions (5th ed.) Published by Library of Congress
New York City has thousands of alluring attractions. Their sports stadiums draw millions of fans every year. New York has a storied history and these venues tell much of that story. However, there are more fun things to do at these places than just catch a ballgame. Before you head out to watch a ballgame, you can always check for interesting attractions on TopView.
...port. As it now stands, they are as good as disenfranchised- a vast number of the taxpaying public who will never set foot inside these stadiums and arenas” (as cited in Jarvie, 2012).
The local economy benefits from a major professional sports team that benefits from different sources. a local sports team benefits from audience tickets, selling sporting goods like(hats, jerseys, ext.) They also benefit from the concession stand to sell (hot dogs, beer, popcorn, peanuts)also selling meals.they also benefit when sports fans travel. Another big reason they benefit is when players get paid
Sports are one of the most profitable industries in the world. Everyone wants to get their hands 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 have drastically changed over the last ten years.
McMichael, Philip, ed 2012. Development and Social Change: A Global Perspective, 5th ed. London: Sage Publications, Inc.
Throughout this essay I will focus on the design and development of stadiums from the beginning of the 20th century until the present day.
While sports for the spectators are merely entertainment, the economics of the industry are what drives businesses to become involved. Sports have become more of a business entity rather than an entertainment industry due to the strong economic perception of the over all industry. There are several instances in which economics may contribute to the effect on the sports industry, such as: the success of a team, the price of a ticket, the amount of money an athlete will make, and the amount of profit a team will make. The success of an...
In today’s professional sports landscape, it seems as though a new “state-of-the-art” stadium is being constructed for teams every year. Teams want their stadiums to stand out among the competition in an attempt to attract fans, star free-agents, and sponsors. Now, these types of stadiums, like AT&T Stadium in Arlington, Texas, are easily surpassing the billion dollar mark in total cost. AT&T Stadium’s building cost was $1.2 billion (Associated Press, 2013). Many of these massive projects receive a substantial amount of public funding, but skeptics argue that these stadiums actually are not economically beneficial to the public that helped fund them, therefore are not wise investments. One publicly funded stadium that has proven to be a wise
World Bank (2005). Economic Growth in the 1990s: Learning from a Decade of Reform. World Bank, Washington, DC.
There are at least four different research perspectives about the relationship between development and economic growth. Firstly, economic growth is the basis for social development. Secondly, economic growth and social development are not necessarily linked. Thirdly, both economic growth and social development are not basic causes by each other, but they depend on interaction. Fourthly, social development is the prerequisite for economic growth (Mazumdar. 1...