Are pro sports teams economic winners for cities?

[finehoe]

Unlike your examples of infrastructure or public services, we stop when the demonstrated gains no longer accrue to the public as a whole and instead concentrate in the hands of the few. 50 million dollars for improving the quantity and quality of free urban parks? Or 50 million dollars for a private entity to get more people to pay $150 a visit?

A private entity that antitrust law doesn't apply to and that does not pay corporate taxes.

How the NFL Fleeces Taxpayers http://www.theatlantic.com/magazine/archive/2013/10/how-the-nfl-fleeces-taxpayers/309448/

[spuwho]

Unlike your examples of infrastructure or public services, we stop when the demonstrated gains no longer accrue to the public as a whole and instead concentrate in the hands of the few. 50 million dollars for improving the quantity and quality of free urban parks? Or 50 million dollars for a private entity to get more people to pay $150 a visit?

Reportedly, this is the basis of the "Florida Resident Discount" at many of these entertainment centers that rely on tax free financing tools to develop their attraction. It not only acknowledges their status, but also reflects public good will.

In the area of sports, we usually don't see discounts like these.  However, this is also why the NFL is so sensitive to public perceptions. They acknowledge they have a good racket going and have to be subject to the public will lest they lose it. Hence the crackdown on player behaviors.

Will AAF offer a "Florida Resident Discount"? Probably at the beginning, if anything to attract ridership and establish some usage patterns. But if it is deemed a success early, I could see that discount diminish over time.

[finehoe]

Hence the crackdown on player behaviors.

The public would be better served by a crackdown on corporate extortion.

[urbanlibertarian]

Why are politicians so eager to jump into bed with the NFL?  Because the voters reward them for doing so.  It stinks worse than a paper mill but most of us just ignore the smell.

[fsquid]

Why are politicians so eager to jump into bed with the NFL?  Because the voters reward them for doing so.  It stinks worse than a paper mill but most of us just ignore the smell.

what would I do with my Sundays?

[urbanlibertarian]

Why are politicians so eager to jump into bed with the NFL?  Because the voters reward them for doing so.  It stinks worse than a paper mill but most of us just ignore the smell.

what would I do with my Sundays?

I don't want the NFL to go away, I just want the government subsidies and anti-trust exemption to go away.

[spuwho]

Usually the question that comes up is how it got to be that way in the first place?

In baseball many early owners owned their parks. Or sold them to someone who had the resources to build them.

Football started as clubs usually stemming from a company sponsoring their employees. When they seperated themselves from their employers, finding enough money to even field a team was struggle. Finding the dough to pay for players and pay rent for a place to play bankrupt many early teams.

2 things changed.

Red Grange and Free Agency.

People were clamoring to see Red Grange. His exploits in college were heard nationwide on radio and now they wanted to see him play pro. Major cities were throwing around venues to get the Bears to play so the locals could see him in action. Exhibitions were common and the Bears made alot of money during this time. And they put up no money for the venues, just part of the gate.

It was here that the predecessors of the NFL got used to not having to pay for their own place to play. The seasons were short. The players had full time jobs, why waste money on a place to play?

Then came free agency. Player salaries were moving up fast. Just a take on the gate proceeds wasnt enough.  TV revenue was growing but not as fast as the salaries. Teams needed new sources of revenue in the venue but didnt have the capital to warrant it. So local municipalities built a series of multi purpose stadiums to accomodate all the growing levels of pro sports. It made sense to have 100 events a year in the place due to the tax revenue off the ticket and beer sales. Teams got their money off parking revenue.

But this has changed. The multi purpose stadiums arent enough anymore.  Now the only way to increase revenue is to make purpose built venues. But the issue is that the volume of events per venue has been going down. This makes less of a value to the local taxpayer becuase the local revenue from the venue drops relative to the funding required to create it.

In this day and age, you can eliminate the cost of the stadium completely and have the game played in a green screen high roof warehouse.

The crowds and noise can be simulated and cities would be off the hook of funding the venue. The team can keep every penny to themselves.