INTRODUCTION
The sentiment can be heard in any office break room, local tavern, or play field. The utter discontent of the increasing cost of attending professional sporting events. Distain ranges from players salaries to cost of parking and concessions. One local newscaster, channel 5 in Chicago, Illinois – April, 2003, reports that for a family of four to attend a major league baseball game on opening day costs between $160 and $200 dollars.
The precursor to this cost was a decade of skyrocketing salaries and the trend to build huge public ally financed megaplexis to house these professional athletes. The current response to this ostentatious decade is to put forth bills to prevent and/or set limits on public financed projects (Shafroth, 1996). The history of stadiums shows that it was always the norm of publicly building stadiums, however, with the cost of these projects astronomical the public is more skeptical (Rosentraub, 1991). The reason why state and local governments continue to want to finance these stadiums has been much debated. The main debate is one of economic impact. The following two excerpts illustrate this debate:
Stadium subsidies do not increase economic activity in total and are not necessary to keep sports leagues in existence. Cities, though, face competition for sports teams; small market cities particularly might need to offer subsidies in response to remain competitive with larger markets. Riverfront Stadium in Cincinnati had not reached the end of its usefulness. But with other cities offering stadium deals, the Reds and Bengals secured new stadiums at a total cost ...
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Change is often met with opposition, skepticism, and even euphoria. All three of these feelings have been expressed with the announcement of the Atlanta Braves Major League Baseball team’s search for a new stadium to commence their 2017 season. The Braves current stadium is known as Turner Field, which originally completed construction in 1996 to host the 1996 Summer Olympics, is scheduled for demolition in 2017. The Braves announced that they are pursuing the construction of a new stadium in Cobb County, located in the northeast suburbs outside Atlanta. The new Cobb County stadium location far out weights the inner city location of Turner Field.
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Baseball developed before the Civil War but did not achieve professional status until the 1870s (The Baseball Glove, 2004). In 1871 the National Association of Professional Baseball Players was formed. Unfortunately the organization ran into financial hardships and was abandoned in 1875. The following year marked the formation of the National League of Professional Baseball Players, which was soon shortened to the National League (Ibid). In 1884 the rival American League was founded and th...
Nemee, David. “100 Years of Major League Baseball.” Lincolnwood, Illinois: Publications Infernational, Ltd, 200. Print.
Baseball remains today one of America’s most popular sports, and furthermore, baseball is one of America’s most successful forms of entertainment. As a result, Baseball is an economic being of its own. However, the sustainability of any professional sport organization depends directly on its economic capabilities. For example, in Baseball, all revenue is a product of the fans reaction to ticket prices, advertisements, television contracts, etc. During the devastating Great Depression in 1929, the fans of baseball experienced fiscal suffering. The appeal of baseball declined as more and more people were trying to make enough money to live. There was a significant drop in attention, attendance, and enjoyment. Although baseball’s vitality might have seemed threatened by the overwhelming Great Depression, the baseball community modernized their sport by implementing new changes that resulted in the game’s survival.
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.
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...
Jiobu, Robert M., “Racial Inequality in a Public Arena: The Case of Professional Baseball”. Social Forces , Vol. 67, No. 2 (Dec., 1988), pp. 524-534 Oxford University Press
I grew up in front of the T.V. watching bone-crunching hits and massive home runs in old Cleveland Municipal Stadium. I saw the last game the Browns played there and I started bawling like a blubbering idiot when they left the field. Back then sports were much more simple. The games were played for fun. There were no high-school kids bringing down the quality of NBA games, There weren’t any greedy me-first 19 year olds trying to sue their way into the NFL. Nor were there any teams spending 190 million dollars to buy a World Series like the Yankees. But when the 1995 NFL season ended I was finally introduced to the most horrid part of sports... economics.
Wulf, Steve. "Why Not Pay College Athletes, Who Put In Long Hours To Fill Stadiums-And Coffers?" Time 21 Oct. 1996: 19
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...
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.