In addition, all the extra spending and income gets taxed when it is spent and earned and respent again. The hope is that the new economic activity and increased traffic will lead to revitalization of that area. In a similar vein, stadium construction can be proposed as an economic-development initiative by choosing to build in a blighted or underdeveloped area. As interest in the area grows, the value of existing commercial and residential property is likely to improve. Such development might include new restaurants and bars as well as condominium and office space. 7Ī potential new stadium also holds the promise of new development taking root nearby. Louis Cardinals home games in 2015 was $343.9 million. The estimated economic impact of those millions of people who attended St. Economists call this the multiplier effect, whereby one dollar of spending (by consumers, businesses, or government) creates more than one dollar in economic activity. And, as those parking attendants, restaurant workers, and stadium workers spend their earnings, the money circulates again through the economy. All that spending generates revenue and jobs for the local community. 6 Baseball fans who attend games also pay for parking, eat in restaurants, and buy food and drink at the ballpark. Louis Cardinals play at Busch Stadium in 2015 (the second-highest home game attendance in Major League Baseball that year). For example, more than 3.5 million people 5 saw the St. 4Īlthough construction jobs eventually disappear once a stadium is built, once the games begin, so does consumer spending. For example, the proposed stadium for the Los Angeles Rams in Inglewood, California, was predicted to cost $3 billion and add 22,000 construction jobs to the economy of Los Angeles, California. Proponents of a new stadium often laud the project's ability to generate new construction jobs. 3 And, like the cathedrals of old, they are expensive, massive building projects that require years of intensive labor. In fact, they are often compared to the medieval cathedral in their attempt to dominate the skyline and inspire civic pride. First, sports stadiums are huge construction projects. Proponents say that subsidizing sports stadiums is justified because of the economic impact it will have on the community. 2 Of course, the controversy rests on the fact that any government subsidy for building a new stadium is funded by taxpayers. Bank Stadium for the Minnesota Vikings (2016), of which $498 million was paid for by the state and city governments. 1 The newest NFL stadium is the $1.1 billion U.S. But who should pay for the stadiums? From 2008 to 2010, three NFL stadiums were built: the $710 million Lucas Oil Stadium for the Indianapolis Colts, the $1.1 billion AT&T Stadium for the Dallas Cowboys, and the $1.6 billion MetLife Stadium for the New York Jets and Giants. CITIES SKYLINES ADD MONEYMONEY PROFESSIONALProfessional sports give people pride and a sense of community. "The idea that sports is a catalyst for economic development just doesn't hold water."
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