Los Angeles Case Study

Thus we can see why public money is eagerly donated. The full costs of a stadium and the damage it does to communities are often years in the future, long after the politician is known for being the hero that save our local team and has moved on to bigger and better things, now with the campaign funding of the very teams that they built homes for and the fans who continue to pay. Team owners can choose new cities but cities can’t choose new teams thanks to the leagues government-sanctioned monopolies over franchise placement, mayors for example, feel they must offer owners anything they want. “Politicians continue

The Packers are unlike any franchise in the league, it is the only non-profit, community-owned professional sports team in the United States. Rather than being the property of an individual, partnership, or corporate entity, the Packers are owned by their beloved fans. The Green Bay Packers are by far the NFL’s smallest market yet, the socialization between fans and team is unlike any other in the league. How this franchise can sustain itself without a wealthy billionaire is impressive to say the least. The Packers’ organization proves that public ownership can be very successful when put into practice. However, it is unlikely that we will ever see the likes of a non-profit organization in the NFL ever again.

     Possibly those who are most effected by the sport’s industry’s willingness to abandon a community are the dedicated fans. When Al Davis moved the Oakland Raiders to Los Angeles, he pulled away from some of sport’s most loyal fans and also hurt his football team. The NFL’s Colts and Cardinals have also had failures on the field since their moves. These three teams are proof that all the greed that was put into the moving of their franchises hasn’t brought them more success or in some cases less success.

I am going to discuss the topic of National Football League stadiums and their public funding. The purpose of the study is to find out if funding of NFL stadiums is “bad business,” The research I will look at the impacts that a stadium has on the economy in the city. Cities’ like to have attractions that they can draw from and be proud of. Most cities have some form of sport arena, and more are being built or are planned to be built. As with any business there are positives and negatives when hosting a sports team. Cities pay multimillions to help fund and build sport stadiums for teams. I hadn’t researched or looked into this topic before, so I was very intrigued by this. At the end of this paper I will give my own personal opinion.

The NFL continues to remain the most lucrative professional league. According to Forbes Magazine the NFL’s 32 teams are worth on average, $1.7 billion, which is more than any other sports league. In contrast the world’s top 20 soccer teams have an average value of $976 million. The NFL has been successful despite the severe brain injuries that have been suffered by the athletes of their sport. Even though they continue to generate billions of dollars each year, the NFL is in danger of losing

While growing up in the state of Texas I was introduced to National Football League (NFL) at a very young age. Not only was I obsessed with great players like Emmitt Smith and Michael Irving, I had a more finical appreciation for the lucrativeness associated with the NFL. My young adulthood as well as my teenage years was spent playing and learning football with the aspirations of hopefully making it to the NFL. Unfortunately, my playing days ended with tryouts at Texas Tech University, but my love for the game has remained stagnant over the years even till this day. The NFL today is Americas most watched sports league and has taken the crown as the most lucrative and unique economic force in sports. Forbes offered approximations stating that on average, the NFL generates more than $6-9 billion a year in revenues alone. A third of the individual franchises in the league were appraised at over more than $1 billion while the other franchises average nine figures or higher. The NFL as an organization generates its revenues through a multitude of ways ranging from huge television contracts, in-stadium ticket sales, advertising ads paid for by sponsors and merchandise. Their business model unlike most other leagues, is centered on a hard salary cap on player contracts which provides cost certainty with its sponsors. In this paper, I will examine the economic and historical narrative associated with the growth of the NFL’s

Stadium subsidies are used to fiancé new stadiums. The government provides financial support to franchises that allows them to build their new stadiums. These subsidies are costing tax payers millions and do not seem to be in the best interest of the city the stadium is in. Those in favor of using tax payer dollars to build stadiums argue that the economic impact a professional franchise has on a city is great and a new stadium will help generate revenue. Research has shown this is not the case. Most stadiums cost the city and never produce enough revenue to make up for those costs (Bast, 1990).

To aid Cowboys owner and general manager Jerry Jones, whom is stated in Forbes Magazine as being “worth 3.1 billion dollars himself,” (Page 1), in paying the construction costs of the new stadium, Arlington voters approved the increase of the city's sales tax by 0.5 percent, the hotel occupancy tax by 2 percent, and car rental tax by 5 percent. The City of Arlington provided over $325 million (including interest) in bonds as funding, and Jones covered any cost overruns. Also, the NFL provided the Cowboys with an additional $150 million loan, following its policy for facilitating financing for the construction of new stadiums,” (Page 1).

In Los Angeles, it’s a very popular and expensive place to live, and due to many reasons over 55,000 people have been homeless, up to 2006 the homeless would get arrested for laying in public areas, losing all of their belongings. In the case of Jones v. City of Los Angeles six homeless people appealed their acclimation and won, causing the city to remove that law. In the Case of Jones v. Los Angeles, the court made the right decision because this law acted against the 8th and 14th amendment.

In October, The Kings announced that the deal was final, they will now be undertaking all business operations performed by the Bighorns. Neither Herb Santos, pervious owner of the Bighorns, or the Kings will disclose the cost of the purchase. Other D-League business inquiries have sold for $6 million, such as a D-League Team that was just bought out close to Toronto. We can only assume that the purchase of the Bighorns, were within the range of the same financial cost. Only good things have been said about the purchase, it has been foretold that it will have great benefits for both teams. The Kings principle owner Vivek Ranadive only further justified the benefits within his statement, “This is an incredible opportunity to develop players, front-office staff and future business executives for the Sacramento Kings, while simultaneously contributing meaningfully to the Reno entertainment, commercial and nonprofit ecosystem.”

People always wonder why the City of Angels is different from other cities. This paper will answer this question and explain the uniqueness that makes L.A., “L.A.” Los Angeles, since its birth as an embryonic city, has become one of the most diverse metropolises, offering to the public what no other city can. This paper will emphasize the relationship between the federal government and the western United States. It will also illustrate how capitalism has flourished because of the prevalent 19th century Laissez Faire ideology. It will describe how the free market prevailed and expanded Los Angeles outward, while cultivating new public institutions and private enterprises.

Proponents of subsidizing sports stadiums is a great decision because the economic impact it will have on the community is great for two main reasons. First, sports stadiums are massive construction projects. In fact, one could compare them to a medieval cathedral in their attempts to dominate a skyline and inspire pride in one’s city And, just like these cathedrals, they are very expensive, and massive building projects that would require many years of hard painstaking labor. 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. Although construction jobs do eventually disappear once a stadium is constructed once the games begin, so does the massive consumer spending. For example, more than 3.5 million people saw the St. Louis Cardinals play at Busch Stadium in 2015.

In the United States, new sports stadiums are commonly seen as a vital part of the redevelopment of a city having a great economic growth with the production of jobs and a positive income builder. After this, the owners of the pro sports teams with millions and millions of dollars of subsidies for the construction of new stadiums and arenas and expect these facilities to generate economic benefits exceeding these subsidies by large margins. However, a growing body of fact indicates that professional sports facilities, and the franchises they are home to, may not be engines of economic benefit anywhere claims Sachse, “. In reality, sports franchises typically account for a very small proportion of the total economic output of the cities in which they reside.” Some economical studies on the amount of income and employment in US cities find no evidence of positive economic benefits associated with past sports facility construction and some studies find that professional sports facilities and teams have a net negative economic impact on income and employment. It just shows that these results suggest that at best, professional sports teams and facilities provide non-pecuniary benefits like civic pride, and a greater sense of community, along with consumption benefits to those attending games and following the local team in the media; at worst, residents

Each of the  stadiums are funded in unique ways, communities do not benefit from new stadiums, and stadiums do not save a struggling downtown. Foremost, stadiums hurt public schools, and this money should be used for more important public services.  There are many  reasons we subsidize sports, but stadiums do not help the economy, and there are no net benefits from stadiums.  Teams strive for new stadiums to create an image,  but there are  options so that a community will not loose a team to another city without building a new stadium.

If you add the 8 home games that will be played at Azteca Stadium you will get an annual income from the team’s ticket pricing of $69,600,000 USD of revenue in just ticket sales alone. Besides ticket revenue, and merchandising, about half of the average team’s revenue comes from broadcasting revenue, which includes revenue from TV, radio and video games. In 2017, the NFL split a record $7.8 Billion of national TV revenue amongst all 32 teams. That means each team received a whopping $244 million. Another huge income for NFL teams is gameday revenue such as food and drink. Beer concession prices range from $5-10 USD and hot dog prices range from $3-6 USD. Although these prices may seem low, if each fan out of 87 000 purchases 10 dollars worth of food and drink, that would be about 870 thousand dollars in stadium income in one game. According to Statista, the Jacksonville Jaguars total 2016 team revenue was $377 million. The team revenue has been slowly increasing since 2001, which proves the rising popularity of the NFL, but Jacksonville’s team revenue is still relatively low compared to other NFL teams. The team’s salary for the 2017 season is currently $162,068,653. With a better revenue, it’s possible the team would be able to raise their salary and potentially sign better players. One thing that has to be checked on for the NFL salary cap is the conversion rate between the US