Key Terms
Over the years there have been many new state of the art sports stadiums that have been built in the United States. In fact from 1993 until 2013 there were 101 new sports facilities built on American soil, most notably AT&T Stadium (formally known as Cowboy Stadium) home to the Dallas Cowboys in 2009. Owner of the Cowboys and AT&T Stadium, multi-billionaire Jerry Jones set a new precedent in regards to sporting facilities but the one thing that AT&T stadium has in common with almost all of the other sporting facilities built over the past 20 years, is that they all received direct public funding. The typical justification for a large public investment to build a stadium for an already wealthy sports owner has to do with creating jobs or growing the local economy. Although the opening of new sporting facilities provides many opportunities, according to Aaron Gordon, not only are most of the jobs created by stadium-building projects are either temporary, low-paying, or out-of-state contracting jobs none of which contribute greatly to the local economy and are known as poor public investments. The research intends to explore if publicly funded sporting facilities are a poor use of the millions of dollars drawn out from the public.
Preceding the review there are several key terms that must be explained. Bonds are the most common way for a city or county to generate the needed money that is a debt investment in which an investor loans money to an entity that borrows the funds for a defined period of time at a fixed interest rate (Sawyer, 2006). Hard Taxes include taxes on income, real estate, personal property and general sales. Hard taxes frequently entail voter’s authorization, because the burden of payment fall direct...
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Kosik, M. (2011). Funding options for sports organizations. Sport Science Review, XX, 161-170.
Long, J. (2005). The Real Cost of Public Funding for Major League Sports Facilities . Journal of Sports Economics, 119-141.
Rebeggiani, L. (2006). PUBLIC VS. PRIVATE SPENDING FOR SPORTS FACILITIES - THE CASE OF GERMANY. Public Finance and Management, 424,429-435.
Santomier, J., & Gerlach, J. (2012). Public policy and funding new york's new sports venues. Sport, Business and Management, 241-262. .
Sawyer, T. H. (2006). Financing facilities 101. Journal of Physical Education, Recreation & Dance, 23-28.
Siegfried, J., & Zimbalist, A. (2006). The Economic Impact of Sports Facilities, Teams and Mega-Events. Australian Economic Review, 420–427.
Skoric, S., Bartoluci, M., & Custonja, Z. (2012). Public financing in croatian sport. Financial Theory and Practice, 179-197.
Close, Paul, David Askew, and Xin Xu. The Beijing Olympics the Political Economy of a Sporting Mega-event.. Hoboken: Taylor & Francis, 2006.. 34-35
Siegfried, J., & Zimbalist, A. (2000). The economics of sports facilities and their communities. The Journal of Economic Perspectives, , 95-114.
Some of the most prolific franchises in sports, like the Oakland Raiders and Baltimore Colts of the National Football League, have moved to other cities breaking off their loyalty to the hometown fans. More important than the actual moves are the more frequent threatened moves. When teams “play the field” and explore the option of playing in other cities they are able to lure interested cities into giving them just about any royalty they want. New stadiums are only the beginning. The willingness to threaten departure has secured for teams a variety of land deals, lower taxes, more revenues from parking and concessions, control of stadium operations, guaranteed ticket sales, renovation of stadiums with luxury seating, control over neighborhoods and transportation systems, and that’s only the beginning of the list.
Voltmer and Esslinger assert that financial management of an athletic department is one of the most important duties of the physical education administrator. The physical education administrator is responsible for making all decisions dealing with budget, income, expenditures and accounting aspects for all levels of the athletic department (interschool and interscholastic). Efficient financial management is important in any field; however, when dealing with public funds, no teacher or administrator can afford to be careless or ignorant (Voltmer & Esslinger, 1967). Therefore, physical administrators must employ simple and effective procedures when addressing the financial management of the athletic program.
Wulf, Steve. "Why Not Pay College Athletes, Who Put In Long Hours To Fill Stadiums-And Coffers?" Time 21 Oct. 1996: 19
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...
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 ...
Johnson, Dennis A., and John Acquaviva. "Point/counterpoint: Paying College Athletes."The Sport Journal 15.1 (2012). Questia School. Web. 3 Feb. 2014.
Johnson, Dennis A., and John Acquaviva. "Point/counterpoint: Paying College Athletes." The Sport Journal 15.1 (2012). Questia School. Web. 3 Dec. 2013.
"Paying College Athletes." Issues & Controversies. Facts on File News Services, 21 June 2010. Web. 10 Apr. 2014.
Mitten, Matthew J., James L. Musselman, and Bruce W. Burton. "Targeted Reform of Commercialized Intercollegiate Athletics." San Diego Law Review 47.3 (2010): 779-844. Academic Search Complete. Web. 17 Nov. 2013.
From 2001 2002 there was a 23% increase in the construction of sports stadiums and arenas with costs of those facilities upwards of $7.8 billion. The growing global sport industry requires that sport facility and event management keep current of new and proven management techniques. Sport Facility Management: Organizing Events and Mitigating Risks by Ammon, Jr., Southall, and Blair, provides readers with a basic introduction to elements of facility management for the full range of sporting and entertainment events. There is a high demand for individuals who are educated and trained in facility management, event organization, and risk management and since the September 11 attacks there has been a great emphasis placed on facility and risk management. Each chapter provides theoretical foundations and practical applications for each critical phase of facility management. The authors provided photographs, case studies, and industry examples to assist the reader in gaining an overall basic, picture of the sporting event and entertainment industry today. The book provides in-depth discussions about positive advances that have made the entire experience easier and more comfortable for fans; and about the negative economic and cultural consequences for sport events after September 11 2001.
Rose, A. K., & Spiegel, M. M. (2011). The Olympic Effect*. The Economic Journal, 121(553), 652–677
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.
"Money makes the world go 'round." Sports could not exist without the presence of money. You have high paid athletes asking for multi-million dollar contacts, while at the same time you have doctors not even making close to that amount. There are corporations buying out sports teams, buying stadiums, and buying everything that has to do with sports. Someone may ask why they do this. Sports are one of the most profitable industries in the world. Everyone wants to get their hand 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 has drastically changed over the last ten years. In the United States, we spend about 13% of all money on sports and entertainment. Sports has obviously done its job; entertained and drained money out of our pockets.