The rise in popularity of professional sports over the last century has brought financial gain and stability to many facets of the economy. Whether it is a new franchise, stadium, or the signing of a big-name player; these activities bring attention to a region or group and with attention often comes positive economic influence. Building a stadium brings income from such venues as construction jobs, increase in home sales, ticket revenue, hotel bookings, product licensing and broadcasting rights. The influence that a sports stadium brings to local economies is a catalyst for economic development. Many factors come into play when assessing the construction of a new stadium. Will the franchise be successful in the market? How will residential …show more content…
However, many Economists argue to the contrary. “Consumers who spend money on sporting events would likely spend the money on other forms of entertainment, which has a similar economic impact” (Wolla). This type of spending is defined as opportunity cost. The money is being spent at the stadium and venues due to the fact that it is just there. Had the stadium not been built, the money would have been spent in other ways. While this is true, a sports team can also bring a type of unity into an area, and something that unites a community has benefits that economists cannot calculate. Not only does it spur economic growth, but also it stimulates cultural and social growth and factors such as these are rarely fully taken into account. Giving people something to bond over, such as a sports team can bring extensive amounts of community pride that can serve to influence more people to move to the region. As people move into an area the local economy is boosted by real estate sales and local retailers revenue is increased, the boost in sales and revenue increases tax dollars at both a local and state …show more content…
The high price tag leads to many investors attempting to subsidize the costs. “The average cost of a football or baseball stadium built since 2000 is $528 million. The average cost of a basketball or hockey arena built during this period is $276 million” (Wolla). While these numbers are extraordinarily high, the spending that cities do on potentially hosting the Olympics dwarfs the amounts in comparison. Cities do not get the bid for the Olympics and then build; they build the facilities and hope that they will win the desired year. “The Greek government spent $12.8 billion to hold the 2004 Summer Olympics in Athens, and the Chinese government invested over $43 billion for the Beijing Games in 2008” (Santo). “The significant investment by local governments suggests that the economic returns of sport must be quite large” (Santo). The potential revenue that a professional sports team can bring to an area is massive, but that is not always the case. For example, many big-name players opt to live outside of the city where their team is located. There are ways to increase this revenue, though. “…cities could bargain as a group with sports leagues, thereby counterbalancing the leagues’ monopoly power” (Zimbalist). However, a new stadium can bring revitalization to so-called “blighted areas” (Wolla). The risk of an increase in economic development far outweighs the potential for a stadiums