This website uses cookies to ensure you have the best experience. Learn more

Should Taxpayers Subsidize Sports Stadiums Essay

1409 words - 6 pages

Over the past twenty years, there has been a ninety percent replacement rate of stadiums, more than a hundred new sports facilities, with nearly all of them receiving public funding. The most common enticement for such a large public investment lies in the hope of creating jobs and growing local economies. In addition to direct employment (stadium and franchise staff), indirect employment serving neighboring shops, restaurants, hotels, and public transportation systems are often positively affected as well. Additionally, when new stadiums are erected, a spike in spin-off development often occurs as a result and ultimately has a positive effect of revitalizing the city. Additional potential benefits include an increase in tourism revenue and an increase in tax revenue (University of Michigan). But are the benefits of stadiums ultimately just a pipedream sold to fools?
In 1997, Andrew Zimbalist co-authored a book with Roger G. Noll which suggested that “A new sports facility has an extremely small (perhaps even negative) effect on overall economic activity and employment” and further concluded that “no recent facility appears to have earned anything approaching a reasonable return on investment. No recent facility has been self-financing in terms of its impact on net tax revenues. Regardless of whether the unit of analysis is a local neighborhood, a city, or an entire metropolitan area, the economic benefits of sports facilities are de minimus” (Noll & Zimbalist, 1997).
With all the talk of the economic benefit of creating jobs, it is important to expand on the reality of this suggestion. Most middle-class citizens have an allocated entertainment budget. As a result of a sports team moving into their community, or the refurbishment of an existing stadium, members of the community do not increase their individual entertainment budgets. A mere shift in an existing budget results in the suffering of alternate entertainment establishments such as bowling alleys, theatres, and restaurants; including the employees of these establishments. All of this negatively affects local business owners and their employees while sports franchise owners and highly paid players (who account for the largest percentage of a sports franchise budget) are not affected. In an example of the employment and payroll in Multnomah County, the following table includes all professional and semi-professional sports teams, athletes, and associated businesses relevant to all spectator sports in the area; including the Portland Trailblazers. In Multnomah Country, in addition to the Trailblazers, there is also a minor-league baseball team, Portland International Raceway, Portland Meadows horse-racing track, Mulnomah Greyhound Park, and various other small spectator sport venues.
Employees Payroll ($100,000s)
Total Spectator
sports Spectator
sports as
% of total Total Spectator
sports Spectator
sports as
% of total
Multnomah
County 380,379 762 0.20% 14,130,922 116,550 0.82%...

Find Another Essay On SHOULD TAXPAYERS SUBSIDIZE SPORTS STADIUMS

Economics, Politics, Incentives and Disadvantages of a City Hosting a Professional Sports Team

1815 words - 8 pages team in the city. All other cities that host a professional sports team have at least one million or more people, with stadiums capacities ranging from 60,000 to 100,000 people. If we do the math, for a Green Bay Packers game to sell out, roughly 23% of Green Bay, WI has to buy a ticket to a game, while other cities such as Dallas, which has a population of 1.24 million people, only 6% of the population have to buy a ticket in order to sell out

rhetoric Essay

1200 words - 5 pages society. However, many believe that the stadiums are used to make cash through corporations; sport has become commercialized. The sport loses its spirit by representing more about products than the sports. People are still debating whether or not stadiums should sell naming rights to corporations. Before 1953, no one would have imagined the debate about naming rights of stadiums; stadiums were used to name after legendary and prominent people

New Stadium

1405 words - 6 pages Introduction Over the past decade more than a dozen new stadiums have been built within the United States. A sports facility has potential to become a major source of revenue, venue for advertising, and brings about economic and social benefits to the community. The goal of a new facility is to increase the fan base, boost revenue, and increase a team’s competitiveness. For cities to reap the benefits of a new facility there must be support

Why the 2014 FIFA World Cup Should Not Take Place in Brazil

1209 words - 5 pages elaborate parties and building stadiums for sports events, Brazil should focus on problems the people of the country are truly passionate about. No one knows what is best for Brazil the way the citizens of the nation do, and all it takes is one look at the protestors’ signs to know that the World Cup is not what this country needs.

Agurmentative Essay Responding To ""Programs Don't Make Sense", By Peter B. Gemma Jr

703 words - 3 pages contamination of AIDS. The author does not give out any fact and evidences to show his points. Moreover, on the social ground, he just wants to save the taxpayers a billion of a penny when others die in the excruciating of AIDS. We should advocate this policy as well as promoting new education programs to the drug-abusers. We have to show them that we never leave them alone. Together, we will find them and bring and back, not leaving them in the hell of the heartless taxpayers.

The Regulations of Tax Laws

2033 words - 8 pages changes. Usually, when congress wants to set a rule, they start by issuing it for a limited set of time. The latest try out of congress is section 164 (b) (5), which gives taxpayers who elect to itemized their deductions an option to take their state and local general sales taxes, in lieu of state and local income taxes. As the law is expiring in December 2005, congress needs to decide whether the law should be

Technology: handy or harmful?

784 words - 4 pages that it will remove from the human aspect in sports. Technology should not be used instead of referees in sports, because it is costly to operate, occupies more time during matches, and takes away from the human element of sports. Installation of technology in sports stadiums would require a lot of funds, which could be used to bring up young players instead. Technology is expensive to operate and maintain, while referees require much less funds

Youth sports

2932 words - 12 pages by pure accidents in sports such as the boxer Michael Watson receiving a blow to the head eventually killing him or stadiums collapsing killing many spectators. Other not so accidental deaths in sports have occurred due to riots after big losses. These are very extreme cases that involve sports. Such big events in sports don't happen everyday, however, everyday there are thousands of people training and participating in sports. Sports can be

The Role Sports Plays in Our Lives

3934 words - 16 pages demanded newer and bigger stadiums that could provide enough seats for the increasing fans. That demands exerted most of its pressure on cities to expand their sports financial aims and projects. Cities started to see revenues in financing stadiums from sources other than collecting the substantial rent paid by the teams. Therefore, the decades of the sixties and the seventies witnessed a steady marked increase in the demand for local governments and

Sports and Religion

1208 words - 5 pages because they see the players that have the same beliefs. Although sports and religion are very much alike there is compelling evidence that proves that they are not. It is to my understanding that due to the law sports and religion should remain separate. There are many factors that contribute to this as well. There are various different types of religions and they get very detailed while there is only one general type of sport. Many different

Tanner W. ROUGH DRAFT AS OF 12/10

797 words - 4 pages stadiums, ski slopes, golf courses, racetracks, swimming pools, beaches, and tennis courts. Sports managers work outdoors and indoors. Managers work in all different kinds of weather and spend a lot of time on their feet. The managers are expected to have control of the teams on field, court, or slopes. One of the responsibilities is to break up disputes and fights between rival team members. To begin a game or during the games, sports

Similar Essays

Sports Stadiums: Turning Public Money Into Private Profit

3701 words - 15 pages revitalize from a new stadium.  Professional athletes should be less greedy and selfish and help the next generation of students.  This can be done by athletes and owners not only paying for their own stadiums, but donating personally money to poor schools.  Since stadiums damage so many schools we should not subsidize sports.               Taxpayers that support new stadiums argue that these stadiums are needed to not loose a cities

Economic And Societal Implications On Communities Surrounding Sports Franchises

2922 words - 12 pages subsidize the team payroll to entice a sports franchise to build in their community. The Dodgers are an example of what cities should not do, not only do the Dodgers own their stadium, which the public paid for, but the city donated the land on which the stadium sits. This has allowed their owners to reap the financial benefits. The Dodgers recently penned an $8.5 billion contract with Time Warner Cable for 25 years’ worth of Dodger games

Public Subsidies For Sports Facilities Essay

3668 words - 15 pages Nashville. Why Cities Subsidize Sports The economic rationale for cities' willingness to subsidize sports facilities is revealed in the campaign slogan for a new stadium for the San Francisco 49ers: "Build the Stadium--Create the Jobs!" Proponents claim that sports facilities improve the local economy in four ways. First, building the facility creates construction jobs. Second, people who attend games or work for the team generate new

Ballparks Economic Report

1264 words - 5 pages Who Should Pay For The Ballparks? People flock to see baseball, football, and hockey at their local sports stadiums, and there is no sign that this trend will slow. I have lived in Seattle my whole life and have seen the debate about public money being spent on ballparks. I feel that taxpayers should pay for part of the cost of new parks built in their town because the taxpayers reap the benefits of revenues created by the ballparks. Although