In the article “Publicly Financed Sports Stadiums Are a Game That Taxpayers Lose” by Jeffrey Dorfman of Forbes highlights the financing of new stadiums throughout the country. In his article he hits on the controversial topic of how stadiums use public taxpayers money to fund and pay for the construction of the lavish stadiums. Dorfman adamantly states that local governments should not finance a stadium with public money because only team owners, and a few businesses benefit from the events that are held in the stadium. The economic impact of the stadium is not the same as tax revenue and when evaluating events, the visitor’s budget must be accounted for. The stadium will produce economic activity by bringing in thousands of people, but it will not justify using public funds because the tax revenue from fans …show more content…
The hotel stay probably produces “$200-250 in tax revenue, the restaurant bills another $20, and the game ticket another $35. That means the over $3000 in spending really amounts to around $300 in tax revenue” (Dorfman, 2015). So while the fan may bring an economic boost to local businesses, the tax revenue is not near enough to justify using public funds to help finance the new stadium. Also by attending the game, it takes money that would be spent at other local activities and uses them at the game. For example when a fan buys a ticket of $400 to see a NFL game, that’s $400 not going to the local restaurants, Movie Theater, and amusement parks. This is called the substitution effect and it simply states that by spending money on a new activity in the community just means that’s your money is going from one local entity to another, which brings no new tax revenue to the local economy. Overall Dorfman does not believe that local governments should use public funds to finance luxurious
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...
Siegfried, J., & Zimbalist, A. (2000). The economics of sports facilities and their communities. The Journal of Economic Perspectives, , 95-114.
Greed and the Death of Professional Sports "Show me the money," screamed Rod. "C'mon Jerry, show me the money!" We vividly remember this famous line from the hit movie, Jerry Maguire. The greedy football player, Rod Tidwell, screams these unforgettable lines trying to convince his agent that he will not settle for any less than a top dollar salary as the flashy Arizona Cardinal wide receiver. This scene exemplifies what has happened to professional sports in recent years.
The total cost of the Cobb County stadium project is estimated to be $672 million dollars, which will consist of both public and private funds. The public funds will come from t...
There is a nationwide trend in which taxpayers are asked to pay for new stadiums these stadiums benefit a single corporation. A sport construction boom has started, these new stadiums cost a minimum of $200 million to build, but usually cost much more. New stadiums have been built, or are underway, in New York, Pittsburgh, Dallas, Baltimore, Cincinnati, Seattle, Tampa, Washington DC, St. Louis, Jacksonville, and Oakland. This competitive trend replaces old stadiums with high tech flashy stadiums used exclusively for one sport. These stadiums are unnecessary, and not cost efficient. Most of the time new stadiums are not used for multi-purposes, they bring in money exclusively for the professional league and not ...
The imbalance between public and private school sports teams does not need to be adjusted. Private schools are offering an extra service that public schools cannot offer. That service is better teachers all the way to better coaches. There are no rules on how they can raise money for their athletic programs unlike public schools. Because of the athletic success more student athletes want to go to the private schools. Which in turn gives the student athletic a better opportunity to be recruited. No the private schools do not need to be adjusted public schools need to improve their outlook on athletics.
In Major League Baseball, stadiums can affect the game dramatically by the size and by the way the dirt is laid out and how the weather is as well. The baseball teams and players can be affected by this in their major life physically and mentally. Major League Baseball is a prominent organization in our daily life. The game is very important for most people. The game is a lifestyle to people as well. Baseball has changed over the years. For instance, Pete Palmer states, “The way baseball is playing right now is completely different from the past” (Palmer, summary, 2014). A very helping part of baseball are baseball stadiums. For example, ballparks of america says, “... ballparks are amazing, they help us play” (ballparks of america, summary,
After reading " The Case Against High School Sports" by Amanda Ripley started to make me think. There were many strong points about how the priorities of the sports are beginning to be more important to students than their education. Another great point was that the financing and budgeting is unfairly distributed throughout school districts and is spent more on athletics and clubs and not enough on classes. And I Believe that schools should put certain restrictions on the spending and promoting or in school sports and clubs because of the major drop in national and world comparisons.
November 6, 1999 the doors opened for the first time to Pacer fans. Fans roamed the corridors and were able to see how the over-budget, 15 story high, $183 million dollar facility was going to pay off for Indianapolis. Of the $183 million the Pacers are responsible for $57 million. This comes from their pockets of team revenue. The city, through local tax, will cover $79 million. This money will be collected via the tax district, hotel-motel tax, and built in ticket tax. The Tax district is a tax that is placed on the area surrounding the Fieldhouse. Local businesses and Circle Center Mall residents will be taxed for the beneficial increase in customers in the area due to the new facility. The Hotel-Motel tax is placed on existing and new hotels in the area. This tax is added to the cost of nightly stays in the hotels that fans may be using while attending functions at Conseco Fieldhouse.
Financial aspects and profitability of college athletic programs is one of the most important arguments involved in this controversy. A group of people expresses that college athletic programs are over emphasized. The point they show on the first hand, is that athletic programs are too expensive for community colleges and small universities. Besides, statistics prove that financial aspects of college athletic programs are extremely questionable. It is true that maintenance, and facility costs for athletic programs are significantly high in comparison to academic programs. Therefore, Denhart, Villwock, and Vedder argue that athletic programs drag money away from important academics programs and degrade their quality. According to them, median expenditures per athlete in Football Bowl Subdivision were $65,800 in 2006. And it has shown a 15.6 percent median expenditure increase fro...
The Current Scale and the Economic Importance of the Sports Industry Over 100 years ago the scale of the sports industry has increased gradually. Not all sports have followed in the same path or footsteps. A slow increasing level of control has been affecting the sports industry since 1960Â’s. Mainly standardisation and commodification of sport. More money has been put into the industry equivalent with the efforts that the sports organisations have put in, to increase their potential at the professional end of the scale, and the voluntary end they remain sustainable.
Over the past twenty years, many things have changed and evolved to impact our economy. From cell phones to music to media, we are all constantly affected. The most influential aspect though, in my opinion, has been America’s biggest game, the Super Bowl. The Super Bowl by all means effects our economies in every way, shape, and form. The sport is one of the most complex social institutions in American Society. Sports effect major institutions of society, including: the mass media, politics, religion, education, and family. The Super Bowl gathers thousands of viewer’s attentions including those who do not usually watch the regular season games.
With over two hundred countries participating, the Olympic Games is easily considered as one of the largest multisport event known to history. The Olympics are held at a different country, and even more rarely at the same city. For a country to be chosen to host the Olympics, the country’s National Olympic Committee (the country’s representatives for the Olympics) nominates a city (from the country they represent) that they think has potential in hosting the Olympics nine years prior to when they wish to host the Olympics. It is a two year process that consists of: Application Phase, Candidate Phase and the Election of the Host City. The country that wins the election is given seven years to prepare for the Olympics. (International Olympic Committee, n.d., p. xx-xx) The hosting country expends billions of dollars, usually money they don’t have, preparing for the Olympics. Then the question is raised 'why would a country go through so much trouble and spend an outrageous amount of money to host this event?' Throughout this discussion paper it will address all the pros and cons for a country to host the Olympics. It will also see if a smaller sports event can produce the same benefits the Olympic offers with less cost and risk.
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.
Honestly, coming into this class, I had no idea what to expect. I have never been in a sports management class, and honestly don’t know much about sports with the exception of baseball. All I knew coming into this class is that it was online, which was a benefit to me as in I’m a better learner when I get to work at my own pace. However, when I read the syllabus and figured out that this class would be mainly writing proposals on different topics, it began to worry me. The last time I had written an essay was my senior year of high school, so I knew I’d have to bring out some of the old knowledge to be able to write a quality paper again. Even though writing papers is a dislike of mine, these proposals turned out to be a good experience