There continues to be ongoing debate and conversation regarding the benefits of a stadium to the local economy.
This latest article summarizes the review of a couple of economists on the subject who state that there is no financial benefit to a locality to have a sports team. The cost of the stadium to the public is not offset by any direct tax revenues or economic impact. This is not good news for owners who are looking to get public assistance for building a stadium. It is going to be hard to convince the town board that their stadium is going to increase local revenue above and beyond the upfront and ongoing public costs of a facility.
This is not to say that there is no benefit to hosting a professional or amateur sports franchise. There are many reasons why having a team may be advantageous to a city, but financial revenue is not one of them.
When teams pitch their ideas to the city they would be wise to review the economic data, anticipate questions from the board and offer alternative answers to the benefits of their stadium/franchise to the area. Town boards also need to understand the economics of a franchise and be prepared to discuss this with the team owners and not just assume a positive economic benefit.
http://www.politifact.com/rhode-island/statements/2015/mar/07/steven-frias/ri-gop-official-steven-frias-says-research-finds-n/
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