The analysis does not take into account the location of a new stadium within Oakland, and therefore focuses on the economics of the expenditures on and within the stadium itself. If a new stadium were to be located in the downtown area, there would be additional benefits in the form of increased spending at local businesses and the opportunity for adjacent development. The impacts calculated below include direct spending by the franchise as well as the indirect benefit of wages that are re-circulated through the economy, and they are presented in constant value terms at the first year of stadium operation.
Santo, PhD, and Gerard C. From the X-Games to the Olympic Games, from bush league ballparks to state-of-the-art major-league stadiums, governments spend large amounts of public money to lure sporting events or host teams. This chapter begins an exploration of public policy decisions regarding investment in sport by laying a foundation that focuses on the economic impacts of stadiums, teams, and events.
This focus provides an essential grounding for the evaluation of public investment decisions that are often framed in the context of economic development policy. Building on that foundation, chapter 5 considers other reasons that officials and residents might support public investment in sport, and illustrates how such decisions are swayed by a mix of economic circumstances, political influence, and private power.
The contents of the current chapter will examine the role that professional sports play in a local economy; explain the process used to project the economic impacts of sport stadiums, teams, and events, and describe the main sources of error or abuse that lead to exaggerated projections of economic impacts; and review some empirical studies that cast doubt on the ability of stadiums, teams, and sporting events to serve as economic catalysts.
Public Cost of Big-Time Sports The expenditure of public money on sport facilities and events is an international phenomenon that occurs at every level of government.
Public money paid for the construction of seven new stadiums in a country about the size of the state of Indiana.
Olympic spending dwarfs even these figures. This type of spending is often speculative in nature; cities take on construction projects long before they are awarded host status.
Public spending on the Salt Lake City Games began in when a portion of state and local sales tax revenue was diverted to fund construction of bobsled, luge, speed skating, and ski jump facilities.
Salt Lake City was not awarded the Games until Burbank et al. Los Angeles did successfully attract the Games. These facilities all eventually played host to professional baseball or football teams. Recent spending on stadiums for top-level professional teams has generated a great deal of attention.
A few were built to attract new teams, but most replaced existing facilities for incumbent teams. Public money has typically covered about two-thirds of these costs. Chapter 5 provides a detailed assessment of recent stadium construction trends.
A. Barton Hinkle column: Publicly funded ballparks are economic losers More than two decades of academic research on the subject find that stadiums produce almost no economic benefit. The Economic Impacts of a New Baseball Stadium in Oakland SUMMARY FINDINGS from the Bay Area Council Economic Institute. We estimate that a new baseball stadium for the Athletics would generate approximately $3 billion of economic impact for the residents and businesses of the City of Oakland over the first 10 years of operation. Economic impact of sport stadiums, teams, events This is an excerpt from Sport and Public Policy, edited by Charles A. Santo, PhD, and Gerard C.S. Mildner, PhD. From the X-Games to the Olympic Games, from bush league ballparks to state-of-the-art major-league stadiums, governments spend large amounts of public money to lure sporting events or.
Economic Magnitude of Sport in Perspective The significant investment by local governments suggests that the economic returns of sport must be quite large. Indeed economic benefits are often proffered as the justification for sport subsidies.
Teams, stadiums, and events are commonly promoted as economic catalysts. Will bring jobs, development, snappy new uniforms. Sport leagues cater to ever-expanding global markets. Wealthy individuals and powerful conglomerates buy and sell teams for hundreds of millions of dollars.
Unions struggle with owners for their share of revenue, and salaries climb increasingly higher, in part because of escalating television contracts.
Big business indeed, but how big is big? By many indicators, sport teams as individual firms play only minor roles within complex urban economies. These numbers may seem large, but some comparisons can provide perspective.
If you are enrolled in a state university, chances are that your school takes in more revenue and spends more than the closest professional sport team. For another comparison, consider this: Few would expect a big-box warehouse store to be a major player in an urban economy, yet they are typically bigger businesses than sport teams.
Of course, the local warehouse store does not have devoted fans who wear Costco hats, paint their faces in Costco blue and red, and follow the successes and failures of the store on the nightly news. We will discuss those benefits consumption benefits in the next chapter, but for now let us focus on the role of sport teams in the local economy.A.
Barton Hinkle column: Publicly funded ballparks are economic losers More than two decades of academic research on the subject find that stadiums produce almost no economic benefit. Economic impact of sport stadiums, teams, events This is an excerpt from Sport and Public Policy, edited by Charles A.
Santo, PhD, and Gerard C.S. Mildner, PhD. From the X-Games to the Olympic Games, from bush league ballparks to state-of-the-art major-league stadiums, governments spend large amounts of public money to lure sporting events or.
We rank them from top to bottom in our annual Best of the Ballparks MLB rankings. with the ballpark, creating a new economic model for sports venues.
Report: PawSox Set for Worcester Move. Summary findings from the Bay Area Council Economic Institute for the Economic Impacts of a New Baseball Stadium in Oakland. The Economics of Subsidizing Sports Stadiums by Scott A.
Wolla "The idea that sports is a catalyst for economic development just doesn't hold water.". THE ECONOMIC, FISCAL, & DEVELOPMENTAL IMPACTS OF A BALLPARK AT SLATER MILL Prepared for: The Pawtucket Foundation OCTOBER Mark S. Rosentraub, Ph.D., Bruce and Joan Bickner Endowed Professor.