Financing Of A North American Sport Facility

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Financing of a North American Sport Facility

The past period of twenty years has witnessed a dramatic rise in sports facility

construction within the United States. This includes the professional institutions and the colleges

as well. This trend is predicted to continue in the future. Much of incurred expenditure in the

construction of new facilities within the United States has been subsidized following cost-

effective measures. For this text, I will present an evaluation of the development of a new facility

within the American sports sectors and its economic impacts on the citizens.

Organized sports have been there since time immemorial. Typically, nevertheless, sports

stadium constructions, as well as professional sports creation of franchises, have acted as an

economic expansion reflection. The Roman Colosseum stands as a real test to this. A Roman

poet coined a phrase that showed the connection between food and entertainment. Whenever

people are satisfied by the end of the day, they will need something to entertain them. This is the

reason why new sports facilities should be given the priority if a nation wants to offer the full

utility of entertainment to its citizens (Coates et al. 342). According to the Roman poet message,

politicians had defined a new way of climbing into leadership by providing food to the people as

well as buying votes from the needy. This shows the essence of sports in our daily lives. One can

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offer anything for recreation and refreshment. It is for this reason that the citizens do not feel the

weight of the burden imposed on them of paying for the construction of new sports facilities.

Various opinions have been given about the subsidies provided to cater for sports

facilities expansion. Those who are in for this idea argue that new facilities will offer a

considerable economic boost. They suggest that construction of new facilities leads to injection

of new spending trends into the domestic economy via fan support. The selling of tickets, as well

as other product related services, has been an active point for those supporting this idea. This is

in addition to tax revenues and job creation. Those against the idea believe that a small facility

poses as much economic impact as a bigger one would (Coates et al.342). Nonetheless, when

the value of putting up a new facility as well as the anticipated profits from it is put into

consideration, it becomes clear that the opponents lack a firm stand to base their arguments.

With the rising dawn of favorite sports activities like cloistered football bowls,

NASCAR, Super Bowl, and Main League Baseball seasons, the sports industry has transformed

into a multi-billion industry. It is for this reason that new facilities ought to be put in place now

and then as well as renovating existing ones. North America has not been left behind in this

progression. From an economic point of view, South African parted with $1.3 billion when it

renovated its facilities in the year 2010 for the world cup preparations. Having this in mind,

North America has been driven by the desire to generate more from sports as well as having best

facilities where international games can be hosted. The Olympic Games held on summer have

been known to attract the most substantial financial attention within all the mega-sports sectors

(Coates et al. 342). Such vast sums of public investment need professional consultation,

something that the North America state has embarked on in its construction of new facilities.

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The phrases of the Roman poet can be applied in symbolizing the declining and frivolity.

Coliseum was seen as an alternative way in which limitation to ascend into power was imposed.

This state signifies the conditions that surrounded the old teams in the United States of America.

These teams can be traced back to many decades ago. Rome did not stand alone in its attempts to

pursue spectator sports. This was the same scenario that was being witnessed in the U.S. Balls

games can be traced back to ancient Egypt too where they were played. It was the Greeks who

brought about the widespread Olympic Games back in 776 B.C. Native Americans also engaged

in handball within Mayan empire as well as the lacrosse’s forerunner, famously known as

northeastern part of the U.S where Baseball has taken reign. This game started those olden days

and had evolved with time to the recent standards. Though a good number of the ancient sports

like chariot racing, archery, wrestling, and horseback riding have a view of professional militia

training, typically those involved would be viewed as amateur athletes (Kasimati and Evangelia

231). While participants of these sports may have received awards from the government,

spectators themselves, or religious leaders for the outstanding performance, the emergence of the

pure professional athlete was not that rampant till the 1800s. This was the birth of Baseball.

The first game to be played in the U.S was the baseball. Following Alexander

Cartwright’s rules codification, ball gained its popularity as a participatory and a spectator sport.

From the revenue collected during its play, it was dawning on the economists’ side that sports

contribute to the revenue income. Though small numbers of spectators and fans were witnessed

by then, the game picked momentum (Kasimati and Evangelia 231). Today, the game is

commanding a most significant percentage of the revenue collected via gate receipts and

ticketing, thus creating the team to be given their city as well as a new stadium.

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Early construction of stadiums within the U.S. was used as a reflection of the landscape of its

economy. The sports facilities were secluded into remote areas within the essential resident

centers found on the east. These facilities gave back fewer amenities when contrasted to modern

ones. The low numbers of fans led to the viewing of the sports activities as uneconomical. It will,

therefore, be ethical for any team to have a city in which they can carry out their activities

effectively. Large stadiums in the United States have been under construction for the past

centuries to meet the needs of the expanding baseball fans. Most of the old stadiums have

succumbed to the economic as well as physical obsolescence thus calling upon the construction

of new ones (Kasimati and Evangelia 231). Chicago Clubs, as well as Boston Red Sox, are the

only ones who have the luck of watching this sport from their former stadiums and less

renovation is needed. Otherwise, much is required to be done on the Baseball team.

The expansion of this sport is signified by the current relocation as well as the development of

games leagues to the western and southern part of the United States. This means the increasing

importance of such places and how it will impact on the overall economy of the United States.

Sports remain to be a vivid symbolism of economic progression up-to-date. Research on national

achievement on international sporting incidences like World Cup proposes that economic aspects

have an influential impact on the matters of the state. These impacts can be witnessed on

individual performances such as the number of gold medals won, the number of complete

successes recorded in the marathon, football or any other sport (Kasimati and Evangelia, 231).

This shows how important it is to set aside a new facility for these teams to carry on with their

activities in a more efficient way.

For entity expert teams, domestic market income has also been seen as a critical factor in

prediction of the team’s success as well as its location. For expert leagues that do not have any

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significant limitation to the team’s payrolls, successful teams prefer relocation to substantial

metropolitan regions that are densely populated. This helps the teams to continue generating

more income. Instead of resting the entire burden on the shoulders of the taxpayers, the team’s

management strategizes on the proper allocation of generated funds for the smooth running of

the activities. However, following the excellent well results recorded by the team, it becomes

easier to collect funds from the citizens (Kasimati and Evangelia 242). It is thus evident that

following the expansion of the team’s activities, more gate receipts are likely to be witnessed

thus increased revenue from the citizens to fund the organization.

While regional economic progress is vividly an aspect of professional sport’s emergence

and sports success, looking through a public policy viewpoint, it is vital to request if the reverse

hides an element of truth too. A healthy sports observer surrounding culminates into economic

progression. Small sports, as well as other related activities, result in a substantial financial gain

to the host cities. This means that if a town had its stadium or facility would generate more

income that would impact more positively on the economy. Thus, interprets the fact that this

team will stand in a position to influence the economy positively hence deserves a new facility

for its activities. For instance, during a single event, NFL typically demands an economic effect

resulting from Super Bowl. This anticipated amount ranges between $400 and $ 500 in millions

(Kasimati and Evangelia 242). This clears any possible doubt that the teams cannot be able to

impact positively on an economy and proves sports as one of the active measures of revenue

contribution.

The possible criticism linked with the building of the new facility is the crowding out the

effect it would cause. Congestions, as well as significant crowds associated with these events,

have been seen as a limiting factor towards the construction of the new facility. This is because

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large volumes of fans are likely to be witnessed in these regions. As a result, criminal acts may

be observed hence inflicting an impression of a bad idea on the minds of many. Nonetheless, the

fact remains that this congestion, as well as massive crowds, is easily controllable (Kasimati and

Evangelia 242). The huge crowds are fans attracted by the game thus after the match is over

everyone departs their ways.

From the economic perspective, construction of the new facility will open doors for more

economic progression. Despite the enormous costs associated with its development, revenue

generation surpasses it all thus making it a viable idea. Putting up a new facility for the team will

reduce time wastage for the team as well as the amount of revenue lost due to small old facilities.

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Work Cited

Kasimati, Evangelia. "Economic aspects and the Summer Olympics: a review of related

research." International journal of tourism research 5.6 (2003): 433-444.

Whitson, David, and Donald Macintosh. "The global circus: International sport, tourism, and the

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Andranovich, Greg, Matthew J. Burbank, and Charles H. Heying. "Olympic cities: lessons

learned from mega-event politics." Journal of urban affairs 23.2 (2001): 113-131.

Gratton, Chris, Simon Shibli, and Richard Coleman. "Sport and economic regeneration in cities."

Urban studies 42.5-6 (2005): 985-999.

Siegfried, John J., and Andrew Zimbalist. "The economics of sports facilities and their

communities." Journal of Economic Perspectives 14.3 (2000): 95-114.

Long, Judith Grant. Public-private partnerships for major league sports facilities. Routledge,

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Gibson, Heather J. "Sports tourism: a critical analysis of research." Sports management review

1.1 (1998): 45-76.

Matheson, Victor. "Mega-Events: The effect of the world’s biggest sporting events on local,

regional, and national economies." (2006).

Horne, John. "The four ‘knowns’ of sports mega‐events." Leisure Studies 26.1 (2007): 81-96.

Bergsgard, Nils Asle. Sports policy: A comparative analysis of stability and change. Routledge,

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Maennig, Wolfgang, and Stan Du Plessis. "World Cup 2010: South African economic

perspectives and policy challenges informed by the experience of Germany 2006."

Contemporary economic policy 25.4 (2007): 578-590.

Coates, Dennis, and Brad R. Humphreys. "Do economists conclude subsidies for sports

franchises, stadiums, and mega-events?." Econ Journal Watch 5.3 (2008): 294-315.

Horne, John. "The four ‘knowns’ of sports mega‐events." Leisure Studies 26.1 (2007): 81-96.

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