We Should Build New Sports Stadiums

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We Should Build New Sports Stadiums

In Roger G. Noll’s article on pro sports’ stadiums in the New York Times, he states that a new baseball stadium in New York City (or anywhere else) is too costly to construct. Mr. Noll is an economist and so it stands that he would understand the financials of building new stadiums. He even attempts to look at the issue, though not an honest effort, from all perspectives.

He says that these facilities never pay for themselves, that there is an increase in overall community income, but not enough to offset cost. He states that though highly paid, a team employs very few workers. A new stadium offers more amenities that are more expensive, such as luxury skyboxes, thus bringing in more revenues than the old stadiums. The teams do see some of these profits but so do the cities. Noll writes that new stadiums force other entertainment out of town, this can be true, but it also brings in new business in the form of restaurants and pre and post-game entertainment. The profits from transportation can be much larger in the post stadium city.

It is true that many cities are financing most if not all of the cost for new athletic complexes. The cost is, in the least, absorbable by the city. The urging of teams to force the pay for the cost of a stadium is a bluff, and should be called by the city. The Yankees will not leave New York and the millions of dollars in T.V., radio and merchandise licensing that a city of that stature can bring. The fact that cities are forced to pay for stadiums is a call for better negotiators for the city, not a reason not to build a stadium.

Hall says that not even New York can keep the Yankees without subsidizing it. Currently it is true that the Yankees are subsidized by the city of New York, but as I previously stated, the Yankees would not give up the fringe benefits of the city that never sleeps. The Yankees tradition is very long and very great. In the current economics of professional sports the Yankees could not leave New York and still afford their current payroll. If the Yankees were forced to cut their player payroll then they would put their winning tradition at risk.

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