Unit Three: The Economics Of Sports Arenas

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Recommended: Sports facilities and government funding

CIA4U Research Essay Unit Three:
Economics of Sports Arenas

CIA4U
Lucas Ojero
Mr. Ciulini

Economics of Sports Arenas Professional sports are phenomenal. The impact they have on our society as a whole is remarkable. Through successful outbursts and embarrassing slumps, your favourite professional sports teams can take you on an emotional rollercoaster of highs and lows. They give their cities identities; something to cheer on and take pride in but at the same time there is a massive underlying consequence. The enormous arenas and stadiums (some of which can hold attendances of over 100,000) that are the homes of these professional sports teams are firing drastic blows to their city’s economies. With these sports arenas/stadiums threatening …show more content…

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. For example Glendale, Arizona’s Phoenix Coyotes of the NHL have abused this scheme which has ultimately dug themselves an even bigger hole. The city of Glendale voted to give the future owner of the Coyotes a subsidy of hundreds of millions of taxpayer dollars in order to pay their annual debt of $12 million for the construction of their arena and various other costs. Glendale let go of 49 public workers …show more content…

This generally relates to NFL stadiums as they are used the least of all professional sports. The NFL season consists of 4 preseason weeks, 17 regular season weeks and 5 post-season weeks. With just one game per week, each NFL stadium is looking at ten guaranteed home stands throughout the pre and regular season and the potential for 3 post season matchups as well if they are successful enough to reach the playoff stage with home field advantage. Possible game days at their home stadiums are revoked as half of the games played are in their opponent’s stadiums, as there is one bye-week in the regular season where there is no scheduled game and as two post season weeks are dedicated to the Pro Bowl and Super Bowl which are hosted in different stadiums each year. This is completely outrageous and results in absolutely no economic benefits as there is nowhere near the required amount of usage. This amount of inefficient usage applies to all NFL stadiums except for MetLife stadium as its numbers are doubled as it is the home of both the New York Giants and New York Jets, or in other words a shared stadium. Overall, NFL stadiums in particular, “do not generate significant local economic growth, and the incremental tax revenue is not sufficient to cover any significant financial contribution by the city,” said Roger Noll, a Stanford Economist. Levi’s Stadium, home of the San

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