Who Benefits from the Presence of Professional Sports Teams? The Implications for Public Funding of Stadiums and Arenas

David Swindell, Mark S. Rosentraub

Research output: Contribution to journalArticle

57 Citations (Scopus)

Abstract

Governments have become increasingly responsible for financing arenas and stadiums. It has now become commonplace to use broad-based or special taxes to build or operate these facilities with teams retaining most or all of the revenues. Some communities have invested more than $500 million in such facilities. To justify the use of tax dollars proponents point to economic and intangible benefits. This study reviews the economic benefits from teams and analyzes, for the first time, the intangible benefits. The results indicate that fans, players, and owners are the prime beneficiaries of a team's presence. As a result, investments by the public sector in facilities should rely on a special user tax district that insures that those who benefit from the facilities bear the cost. A financing plan is presented that any city or county could follow to fund an arena or stadium.

Original languageEnglish (US)
Pages (from-to)11-20
Number of pages10
JournalPublic Administration Review
Volume58
Issue number1
StatePublished - Jan 1998
Externally publishedYes

Fingerprint

professional sports
funding
taxes
fan
dollar
economics
revenue
public sector
district
Professional sports
Public funding
Stadium
costs
community
Tax
Financing
Intangibles

ASJC Scopus subject areas

  • Marketing
  • Sociology and Political Science
  • Public Administration

Cite this

Who Benefits from the Presence of Professional Sports Teams? The Implications for Public Funding of Stadiums and Arenas. / Swindell, David; Rosentraub, Mark S.

In: Public Administration Review, Vol. 58, No. 1, 01.1998, p. 11-20.

Research output: Contribution to journalArticle

@article{eb8c129b4bf6468e94e64e20fe95420d,
title = "Who Benefits from the Presence of Professional Sports Teams? The Implications for Public Funding of Stadiums and Arenas",
abstract = "Governments have become increasingly responsible for financing arenas and stadiums. It has now become commonplace to use broad-based or special taxes to build or operate these facilities with teams retaining most or all of the revenues. Some communities have invested more than $500 million in such facilities. To justify the use of tax dollars proponents point to economic and intangible benefits. This study reviews the economic benefits from teams and analyzes, for the first time, the intangible benefits. The results indicate that fans, players, and owners are the prime beneficiaries of a team's presence. As a result, investments by the public sector in facilities should rely on a special user tax district that insures that those who benefit from the facilities bear the cost. A financing plan is presented that any city or county could follow to fund an arena or stadium.",
author = "David Swindell and Rosentraub, {Mark S.}",
year = "1998",
month = "1",
language = "English (US)",
volume = "58",
pages = "11--20",
journal = "Public Administration Review",
issn = "0033-3352",
publisher = "Wiley-Blackwell",
number = "1",

}

TY - JOUR

T1 - Who Benefits from the Presence of Professional Sports Teams? The Implications for Public Funding of Stadiums and Arenas

AU - Swindell, David

AU - Rosentraub, Mark S.

PY - 1998/1

Y1 - 1998/1

N2 - Governments have become increasingly responsible for financing arenas and stadiums. It has now become commonplace to use broad-based or special taxes to build or operate these facilities with teams retaining most or all of the revenues. Some communities have invested more than $500 million in such facilities. To justify the use of tax dollars proponents point to economic and intangible benefits. This study reviews the economic benefits from teams and analyzes, for the first time, the intangible benefits. The results indicate that fans, players, and owners are the prime beneficiaries of a team's presence. As a result, investments by the public sector in facilities should rely on a special user tax district that insures that those who benefit from the facilities bear the cost. A financing plan is presented that any city or county could follow to fund an arena or stadium.

AB - Governments have become increasingly responsible for financing arenas and stadiums. It has now become commonplace to use broad-based or special taxes to build or operate these facilities with teams retaining most or all of the revenues. Some communities have invested more than $500 million in such facilities. To justify the use of tax dollars proponents point to economic and intangible benefits. This study reviews the economic benefits from teams and analyzes, for the first time, the intangible benefits. The results indicate that fans, players, and owners are the prime beneficiaries of a team's presence. As a result, investments by the public sector in facilities should rely on a special user tax district that insures that those who benefit from the facilities bear the cost. A financing plan is presented that any city or county could follow to fund an arena or stadium.

UR - http://www.scopus.com/inward/record.url?scp=0001918653&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=0001918653&partnerID=8YFLogxK

M3 - Article

VL - 58

SP - 11

EP - 20

JO - Public Administration Review

JF - Public Administration Review

SN - 0033-3352

IS - 1

ER -