NBA Franchise Case Study

It was further explained that there was an additional economic boost provided by the spending of the visiting NBA teams. Simply stated, large events such as a professional sports game or big concerts will attract individuals to come, which in turn will boost the economy of the surrounding area. According to the study performed by the Greater Memphis Chamber of Commerce, “the total economic impact on Memphis/Shelby County generated by these activities is $223 million annually. This includes the impact of all spending by the Memphis Grizzlies, by the operation of the FedEx Forum, and all visitor spending, as it flows through the Shelby County economy” (2010, p.3). It is later determined that the number of jobs that are created and maintained because of this additional revenue is 1,534. On top of this, there is additional revenue created for the city via local taxes and other fees.

The past 20 years have witnessed a massive transformation of professional sports stadiums in North America and the rest of the world. In the United States and Canada alone, by 2012, 125 of the 140 teams in the five largest professional sports leagues, the National Football League (NFL), Major League Baseball (MLB), National Basketball Association (NBA), Major League Soccer (MLS), and National Hockey League (NHL), will play in stadiums constructed or significantly renovated since 1990. This new construction has come at a significant cost, the majority of which has been covered by taxpayers. Construction costs alone for major league professional sports facilities have totaled in excess of $30 billion over the past two

Sports Stadiums are an iconic staple of American tradition. However not everything about these venues is positive. Team owners take advantage of laws and fans to meet their own goals. Citizens and city officials from various locations have taken up their grievances with the NFL in the past. And it has gotten to the point where even political parties join together to bring to light issues with the organization. NFL stadiums are not good for cities because they take advantage of tax payers, hurt citizens on an economic level and cost them billions in subsidies.

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).

One reason why Cleveland, Ohio is the best sports city is because of the amount of money the city generates. When Lebron James decided to come back to the Cleveland Cavaliers in 2014 he brought

Back in 1958, a man by the name of Walter O'Malley moved his professional baseball team from Brooklyn to Los Angeles. Although Walter didn’t know it yet, this move would affect the professional sports league in two significant ways. First, it expanded the market for professional sports to cities on the west coast in states like California, and Washington. Second, the relocation also altered the relationship between sports franchise and their communities.

The issue at hand, however, is that power has shifted from the cities to the teams themselves. Professional athletic organizations have started taking advantage of cities by threatening to relocate unless they get public subsidies for expensive stadium renovations and construction. With this in mind it is imperative to ask today’s question: Do public subsidies for professional athletic organizations benefit their local community?

Both teams are highly competitive in their respective sports, and offer fantastic games and events for Detroit fans and opposing team tourists as well. While looking to increase migration to the city, The District Detroit also wants to increase tourism. Fans from all around the nation are always looking for opportunities to support their team on the road. Not only do they get to see their city’s team in action, but they get to take a mini trip to a different city and explore and experience all that the host city has to offer. The District Detroit is going be a prime destination for fans all around the nation. Detroit will be the only city nationally to have all four major professional sports teams in the downtown area. With restaurants, shopping, bars, hotels, and nightlife the new District has plenty to offer for fan interactions and events. For these tourists to come, Detroit needs to advertise and market this District to the nation to present the image of the complete experience the District has to offer. Not only will tourists be able to see their team play, but the district will offer full engagement and opportunities outside of the arenas. This increased tourism has the potential to increase migration by showing all the offerings the District Detroit will

King and Queens will benefit the economy by providing a few jobs to members of the community. It will bring more money to the area because as the business grows I will be able to hire more people and with the taxes that I pay will help create the money that is needed for improvements.

An entertainment or sports event, such as the MLB World Series, has a direct economic impact on the city that hosts the event due to many aspect of business which vary from consumer spending habits to the amount of state-owned parking lots available. Usually in sports, fans hold a lot of pride and faith in their team which makes them more likely to purchase gear for that team or attend their games. The Chicago Cubs, who are the 2016 World Series Champions, serve as a great example to how a sports event directly impacts the city that holds the event. Since the Cubs haven’t won a World Series title in over 100 years, prior to this year, the fans were showing nothing but die-hard support when their team won. Two days after the Cubs won the

Sports teams are a symbol of a cities pride. Take for example the Chicago Cubs. They create a sense of loyalty toward that city. However, none of that would happen without a stadium. Stadiums and teams can play a very important role in a cities economy, or they could also be irrelevant. To decide whether or not they are useful or not you must first understand each side of the argument. So first, let’s examine the pros of having a stadium within your city. Then, we will discuss the harms of having one. And finally, decide which side is more beneficial for the economy.

Superstar Kevin Durant announced via The Players Tribune that he is leaving the Oklahoma City Thunder to sign with 2015 NBA champions and regular season record-holder for wins, the Golden State Warriors.

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

The city of Springfield, Massachusetts were blessed with the basing of a baseball minor league franchise in their city. But the class A team is faced with great revenue generation challenges that will make or mar the organization. The new team might likely take advantage of the fact that closest sports franchised teams are all located 90 miles away from Springfield. This might create a ticket and concession boom for the team and other benefits like employment and taxes for the city. The city has a considerable moderate family income and a recent growth index in the healthcare, financial, and other small and medium enterprise sectors is an advantage

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.