Soc 432: The Role Of Sports Franchises As Economic Catalyst
The Role of Sports Franchises as Economic Catalyst
Soc 432: Urban Community
University of Arizona
INTRODUCTION Professional sports have become a prominent part of American lives. Today most major cities and urban communities in the United States have at least one major professional sports team. These major professional sports teams include Major League Baseball, The National Basketball Association, The National Football League, and the National Hockey League. In addition, small towns and cities across the United States have become home to minor league teams in variety of sports. In the I990’s alone, 6o major league facilities were constructed. In dollar terms, the 1990’s saw $I8 billion spent on major league facilities, …show more content…
They are believed to provide both economic and non-pecuniary benefits to the people and city in general. Yet the recent boom in sports stadium construction has led to funding of professional sports teams to shift from private to public. Much of the cost of constructing new stadiums now lies with the city and public rather than the owners of the teams. This shift has caused many to question whether or not new stadiums are worth the cost or if the money could be better spent somewhere else. The purpose of this paper is to examine the exact impact professional sports teams have in urban areas and their perceived role as economic catalyst. It will start by looking at the public financing of stadium construction and then look at both the benefits and costs of sports …show more content…
A study done by Xia Feng and Brad Humphreys that was published in August 2008 found that the presence of sporting facilities had a significant positive effect on the value of surrounding houses. This positive effect however decreased as the distance from the facility is increased. The study itself examined the impact of two professional sports facilities, Nationwide Arena, home of the Blue Jackets of the NHL, and Crew Stadium, home of the Columbus Crew of MLS, in Columbus Ohio and the surrounding residential property values (Feng and Humphreys 2008). It looked at the effect of proximity to a sports facility on residential property value. What they found as a result of the study was that presence of both sports facilities in Columbus had a significant positive effect on housing values. Those houses that were located close to both stadiums saw an increase in home values with the building of the stadiums. What this study implies is that sporting facilities have the ability to generate intangible benefits that are often not considered. These benefits, as discussed in the study, have the ability depending on location and execution to increase residential property values in the vicinity of hundreds of millions of dollars (Feng and Humphreys 2008). These residential property value increases only add to the understanding of why cities
Soc 432: Urban Community
University of Arizona
INTRODUCTION Professional sports have become a prominent part of American lives. Today most major cities and urban communities in the United States have at least one major professional sports team. These major professional sports teams include Major League Baseball, The National Basketball Association, The National Football League, and the National Hockey League. In addition, small towns and cities across the United States have become home to minor league teams in variety of sports. In the I990’s alone, 6o major league facilities were constructed. In dollar terms, the 1990’s saw $I8 billion spent on major league facilities, …show more content…
They are believed to provide both economic and non-pecuniary benefits to the people and city in general. Yet the recent boom in sports stadium construction has led to funding of professional sports teams to shift from private to public. Much of the cost of constructing new stadiums now lies with the city and public rather than the owners of the teams. This shift has caused many to question whether or not new stadiums are worth the cost or if the money could be better spent somewhere else. The purpose of this paper is to examine the exact impact professional sports teams have in urban areas and their perceived role as economic catalyst. It will start by looking at the public financing of stadium construction and then look at both the benefits and costs of sports …show more content…
A study done by Xia Feng and Brad Humphreys that was published in August 2008 found that the presence of sporting facilities had a significant positive effect on the value of surrounding houses. This positive effect however decreased as the distance from the facility is increased. The study itself examined the impact of two professional sports facilities, Nationwide Arena, home of the Blue Jackets of the NHL, and Crew Stadium, home of the Columbus Crew of MLS, in Columbus Ohio and the surrounding residential property values (Feng and Humphreys 2008). It looked at the effect of proximity to a sports facility on residential property value. What they found as a result of the study was that presence of both sports facilities in Columbus had a significant positive effect on housing values. Those houses that were located close to both stadiums saw an increase in home values with the building of the stadiums. What this study implies is that sporting facilities have the ability to generate intangible benefits that are often not considered. These benefits, as discussed in the study, have the ability depending on location and execution to increase residential property values in the vicinity of hundreds of millions of dollars (Feng and Humphreys 2008). These residential property value increases only add to the understanding of why cities