Stadium Trends Arguments for Public Funding of Stadiums Arguments against Public Funding of Stadiums The Dollar Value of A Fans Pride

Who should pay? Fans Vs. Non-fans

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In 1950, most pro-sports teams played in privately owned stadiums or arenas

Most pro-football teams were the tenants of pro-baseball teams & played football games around the baseball schedule

All pro-hockey teams played in private arenas Many pro-basketball teams played in college

arenas & played their games around the collegiate schedule

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In the 1990’s U.S. cities spent $5,298m on 57 new venues in the four major pro sports (NFL, NBA, NHL, MLB).- Depken (2003)

Public contribution averaged $218m each (approx. 66% of cost)- Depken (2003) Average capacity of all new arenas: 35,727 Average total cost per seat: $6,613 Average public cost per seat: $4,534

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Reliant Field (Houston) Capacity: 69,500 Cost: $449 Mil Public Money: $309

Mil

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Ford Field (Detroit) Capacity: 64,355 Cost: $500 Mil Public Money: $125

Mil

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Gillette Stadium (New England)

Capacity: 68,800 Cost: $397 Mil Public Money: $72 Mil

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Seahawk Stadium (Seattle)

Capacity: 67,000 Cost: $360 Mil Public Money: $300

Mil

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Indirect Benefits (Benefits not accruing to the team)

The Multiplier Effect (Money keeps being Spent) Job creation in the stadium/downtown area

due to team & stadium related activities A pro-team will attract more

corporations to the area because of the “Major League” image of the city

Community service by players

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Direct Benefits (Benefits to the team & the fans) Team can afford better players & contend for a

championship Enhances civic pride from living in a major league

city Entertainment value for the fans

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Academic studies find that: The multiplier effect is overestimated in

studies by consultants hired by teams seeking new stadiums. Its hard to get an accurate number

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Stadium moves not only increase revenues through higher prices and attendance but lower costs through favorable rental agreements (money that goes to the city).

Most rental agreements provide attendance based rents. This shifts the risk to the landlord (usually the city).

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The typical pattern in baseball stadiums is one in which the stadium gets most or all of the revenue from parking.

Teams get most or all of the revenue from the sale of programs & novelties and food and drink revenues are split between 1/3 and ½ with the rest going to the team.

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New MLB Stadiums & Attendance 1990-2000(Depken, 2003)

2.18 3.01 2.04

00.5

11.5

22.5

33.5

Average Annual Attendance

Mill

ion

s

MLB Average New Stadiums Old Stadiums

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New MLB Stadiums & Win% 1990-2000 (Depken, 2003)

500 543.52 492.51

350

400

450

500

550

600

650

Team Win PercentagesMLB Average New Stadiums Old Stadiums

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New MLB Stadiums & Ticket Prices 1990-2000 (Depken,

2003)

41.058 53.088 38.987

0

10

20

30

40

50

60

Team Payrolls

Mil

lion

s 20

00 D

olla

rs

MLB Average New Stadiums Old Stadiums

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New MLB Stadiums & Profits 1990-2000 (Depken, 2003)

3.803

13.343

2.16102468

10121416

Team Profit

Mill

ion

s 20

00 D

olla

rs

MLB Average New Stadiums Old Stadiums

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Why do we keep building new stadiums with Public Funds?

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Who should pay for the new stadium?

• The City?

• The Team?

• Private Sector?

• Combination?

Personal Seat LicensesPersonal Seat Licenses

Personal Seat Licenses (PSLs) are a relatively new stadium revenue idea, which involve a separate investment by ticketholders to secure the right to purchase seating at the facility.

It has become an effective and popular method to finance new stadiums and arenas, and in some cases, it also serves as an investment to those who participate.

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PSL Cont…PSL Cont…PSL's are an option to generate

revenue from individuals making a one-time investment with little or no expectation of future returns.

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Why Buy One?Why Buy One?Fans in new markets are willing

to pay a premium just to buy a seat.

PSLs give fans the lifetime right to purchase season tickets and can cost $25,000.

In some ways these licenses resemble stock sales. Why?

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Why?Why?You purchase the seat license at a

lower price when the new stadium is built.

If the team does better, you could sell it to someone else at a higher price.◦Your seat can change in value

It also guarantees you a ticket to every game (like season tickets), that you get to keep year after year.

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What kind of stadium would you like to see built? A dome, by water, in the city?

It also must be "green, high-tech, and humane".

How many will it seat?

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Designing a sports stadium involves figuring out a remarkable number of details. How much space is needed for the playing

field, seats, bathrooms, parking, food service, accessibility, HVAC, elevators, speakers, TV monitors, and emergency exits?

What construction materials are best? Safety, economics, and environmental impact

play a large part in design and construction.

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Build a model. Choose the scale for your model. How big will it be?

Figure out the size of the playing field and other areas. Construct an outer shell using recycled boxes or other materials.

Add features such as a retractable roof or sliding entrance made with construction paper.

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Figure out the cost to build your stadium. The turf in one stadium cost $1.5 million. Research who pays for new stadiums and how the money is collected.

A stadium takes up huge tracts of land and the location can affect its success. Often neighborhoods where people live are proposed sites of new stadiums. Debate the pros and cons of construction of a stadium.

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Examples

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Dimensions for Baseball

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New Stadiums36

Dallas CowboysWashington Nationals new stadium TourNew Yankees Stadium Video

Extra Info and Sources

• PSL Article

• Crayola Design Stadium Lesson Plan

• Examples

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