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Chapter 4
 

Chapter 4

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    Chapter 4 Chapter 4 Presentation Transcript

    • CHAPTER 4 DISCUSSION QUESTIONS1) In your opinion, should public subsidies be used to finance sport facilities?2) What franchise became the first major professional sport team to move from the Midwest or northern section of theUS to the West Coast?3) What problem did the Rams move create for visiting teams, & how did the Rams help with this inconvenience?4) How was the land in Los Angeles acquired for the Dodgers stadium?5) What are "cookie-cutter" facilities?6) How did the palace at Auburn Hills & Camden Yards spur a change in the type of facilities that were being built?7) How do professional franchises & facilities generate economic activity?8) What are some questions that sport economists raise about the economic effect of sport franchises & facilities?9) What "psychic benefits" do sport organizations provide?10) What is BIRGing?11) What economic & psychic benefits did the Packers recent Super Bowl provide the town of Green Bay?12) What is the most common method that governments have to raise money for professional sport facilities?13) Explain how each of the following types of taxes can be used to subsidize professional sports.A) Sales TaxB) Property TaxC) Tourism TaxesD) Sin TaxesE) Entertainment Taxes14) What stadium did the citizens in and around Denver agree to fund through a sales tax increase?15) What Seattle stadium was partially funded by a variety of tourism taxes?16) What Ohio stadiums were funded through cigarette & liquor taxes?17) Though not utilized often, what is perhaps the best method of taxation to construct a professional sports facility?
    • IF YOU WERE THE MAYOR OF THE CITY THAT LYNETTE JONES’ MINOR LEAGUE BASEBALL FRANCHISE ISLOCATED, WOULD YOU AGREE TO BUILD HER TEAM A NEW STADIUM? PROS & CONS?
    • “Dolphins Working on Tech Upgrades for Sun Life Stadium” SBJ: February 18-24 SBJ Page 13
    • 1) What is the name of the Dolphins stadium?-SUN LIFE STADIUM2) What is the seating capacity of the stadium?-75,4503) Six years ago what did the Dolphins become one of the first big leagueteams to do?-INSTALLED CISCO’S STADIUM VISION IPTV CONCOURSE DISPLAYSYSTEM AND DIGITAL AUDIO & VOICE MESSAGING PLATFORMS4) The teams proposed stadium upgrades will cost how much?-$400 MILLION
    • 5) The teams proposed stadium upgrades is pending governmental approval of what?-PUBLIC MONEY TO HELP FINANCE THE PROJECT6) In the stadiums 190 suites, the intent is to replace phones with what?-COMPUTER TABLETS TO ORDER FOOD & DRINK AND TO PUT IN SMART TVs WITHSKYPE FOR CORPORATE MEETINGS7) What are the Dolphins doing to remain on the leading edge of technology?-MOVING TO A “VIRTUAL CONCIERGE” ENVIRONMENT IN THE SUITES8) What does Stadium Vision Mobile provide?-LIVE VIDEO & REPLAYS WITH UNIQUE CAMERA VIEWS FOR USERS OF MOBILEDEVICES9) What is one of the biggest price points for Stadium Vision Mobile?-CABLING & LABOR
    • THE PUBLIC SPENT $27 BILLION ON BUILDING, LAND, & INFRASTRUCTURE FOR 167 MAJOR LEAGUE SPORTS FACILTIES FROM 1990-2006.
    • IT IS ESTIMATED THAT THE TOTAL PUBLIC COSTS FOR YANKEE STADIUM & CITI FIELD IS $1.8 BILLION.
    • WHAT ARE THE PROS & CONS OF USING PUBLIC FUNDS TO SUBSIDIZE PROFESSIONAL SPORTS FACILITIES?THE BIGGEST PRO IS THAT THESE FACILITIES REVITALIZE THE DOWNTOWN AREA WITH JOBS & COMMERCE. THE BIGGEST CON IS THAT THE PUBLIC FUNDS CAN BE BETTER SPENT ELSEWHERE, LIKE ON PUBLIC WORKS PROJECTS & EDUCATION.
    • MISSISSIPPI RIVER BRIDGE COLLAPSE-WAS AN 8-LANE STEEL TRUSS ARCH BRIDGE THATCARRIED INTERSTATE 35W ACROSS THE MISSISSIPPIRIVER IN MINNEAPOLIS, MN.-DURING THE EVENING RUSH HOUR ON 8/1/07 ITCOLLAPSED KILLING 13 PEOPLE & INJURING 145.-THE NATIONAL TRANSPORTATION SAFETY BOARD (NTSB)CITED A DESIGN FLAW AS THE CAUSE OF THE COLLAPSE& THE ADDITIONAL WEIGHT ON THE BRIDGE AT THE TIMEOF THE COLLAPSE CONTRIBUTED.-THE BRIDGE WAS NOT ROUTINELY INSPECTED.-THE TWINS GOT PUBLIC FUNDING TO BUILD TARGETFIELD THE YEAR BEFORE THE COLLAPSE.
    • THE HISTORY OF PROFESSIONAL SPORT FACILITY FINANCING
    • 2) WHAT FRANCHISE BECAME THE FIRST MAJOR PROFESSIONALSPORT TEAM TO MOVE FROM THE MIDWEST OR NORTHERN SECTION OF THE US TO THE WEST COAST? CLEVELAND RAMS-MOVED TO LA IN 1946 & BECAME THE LOS ANGELES RAMS.-PLAYED HOME GAMES IN THE LOS ANGELES MEMORIAL COLISEUM(SITE OF THE 1932 SUMMER OLYMPICS).
    • 3) WHAT PROBLEM DID THE RAMS’ MOVE CREATE FOR VISITING TEAMS? IT WAS MORE EXPENSIVE & TIME CONSUMING FOR EAST COAST TEAMS TO TRAVEL TO THE WEST COAST. HOW DID THE RAMS HELP WITH THIS INCONVENIENCE? THE RAMS PROVIDED AN ADDITIONAL $5000 ABOVE THE NORMALREVENUE SHARING DURING THEIR 1ST SEASON IN LA FOR VISITING TEAMS.
    • 4) HOW WAS THE LAND IN LA ACQUIRED FOR THE DODGERS STADIUM? EMINENT DOMAIN
    • 5) WHAT ARE “COOKIE-CUTTER” FACILITIES? STADIUMS THAT HAVE FEATURES SIMILAR TO ONE ANOTHER.-DURING THE 1960’S & 70’S CITIES BEGAN TO BUILD OR RENOVATE FACILITIESTO ATTRACT OR RETAIN PROFESSIONAL FRANCHISES.-STADIUMS WERE DESIGNED TO MAXIMIZE SEATING CAPACITY BECAUSETICKET SALES WERE ONE OF THE MOST IMPORTANT REVENUE SOURCES.-MULTIUSE FACILITIES BECAME THE NORM SO FOOTBALL & BASEBALL TEAMSCOULD SHARE THE FACILITY.-FACILITIES WERE CONSTRUCTED IN SUBURBAN AREAS WHERE ENOUGHLAND WAS PRESENT TO HOST THE FACILITY & THOUSANDS OF PARKINGSPACES.
    • 6) HOW DID THE PALACE AT AUBURN HILLS SPUR A CHANGE IN THE TYPE OF FACILITIES THAT WERE BEING BUILT? THE PALACE HAS 180 LUXURY SUITES THAT GENERATES THE PISTONS MILLIONS OF DOLLARS IN REVENUE.-CONSIDERED TO BE THE FIRST MODERN-STYLE NBA ARENA WHEN ITOPENED IN 1988-ITS LARGE NUMBER OF LUXURY SUITES WAS A MAJOR REASON FOR THEBUILDING BOOM OF NEW NBA ARENAS IN THE 1990’S.-THE PALACE HAS THE LARGEST CAPACITY IN THE NBA (22,076) WHICHHELPED THE PISTONS RECORD THE LEAGUE’S HIGHEST HOME ATTENDANCEFROM 2002-08.
    • 6) HOW DID CAMDEN YARDS SPUR A CHANGE IN THE TYPE OF FACILITIES THAT WERE BEING BUILT? PROVIDED FANS MODERN AMENITIES PACKAGED IN A RETRO STYLE.-ORIOLE PARK AT CAMDEN YARDS WAS THE 1ST MAJOR LEAGUE DOWNTOWN“RETRO” BALLPARK WHEN IT OPENED IN 1992.-ON 8/19/08 THE STADIUM HOSTED ITS 50 MILLIONTH FAN, A MILESTONEREACHED IN JUST 17 SEASONS, THE FASTEST IN MLB HISTORY.-SINCE 1992, THE STADIUM HAS HOSTED THE 3RD-MOST NUMBER OF FANS INMLB.1) YANKEE STADIUM2) DODGER STADIUM
    • 12) WHAT IS THE MOST COMMON METHOD THAT GOVERNMENT HAVE TO RAISE MONEY FOR PROFESSIONAL SPORT FACILITIES? CHANGE THE TAX CODE
    • FACILITY REVENUE STREAMS & FINANCINGTHERE ARE 3 CATEGORIES OF FACILITY REVENUE SOURCES:1) PUBLIC2) PRIVATE3) PUBLIC & PRIVATE COMBINATION-PUBLIC REVENUE: TAXES-PRIVATE REVENUE: OUTSIDE COMPANIES-PUBLIC & PRIVATE: COMBINATION OF REVENUE STREAMS
    • TAXESTHE 4 MAIN PURPOSES OF TAXATION (4 R’S):1) REVENUE: RAISE MONEY TO BUILD & FIX2) REDISTRIBUTION: TRANSFER WEALTH FROM RICHER SECTION OF SOCIETY TO POORER SECTIONS3) REPRICING: TAXES ARE LEVIED TO ADDRESS EXTERNALITIES (TOBACCO TAX)4) REPRESENTATION: CITIZENS DEMAND ACCOUNTABILITY
    • TAXES AS STADIUM REVENUEPROVIDE REVENUES TO PAY PUBLIC’S SHARE OF COSTS FOR SPORTS ENTITIES2 TYPES:1) HARD TAXES -BORNE BY ALL TAXPAYERS -OFTEN NEED VOTER APPROVAL2) SOFT TAXES -BORNE BY SELECT PORTION OF TAXPAYERS -EASIER TO LEVY
    • HARD TAXES (4)1) LOCAL INCOME TAX: -INDIVIDUAL: TAX ON TOTAL INCOME OF INDIVIDUAL -CORPORATE TAX: TAX ON NET INCOME OF COMPANY2) REAL ESTATE TAX-SERVES AS A BENEFIT TAX BECAUSE ITS REVENUES ARE USEDPRIMARILY TO FINANCE SERVICES THAT BENEFIT PROPERTYOWNERS & INCREASE PROPERTY VALUE3) PROPERTY TAX:-INCLUDES TANGIBLE & INTANGIBLE PROPERTY. GENERALLYTAXED VIA ANNUAL MOTOR VEHICLE LICENSING TAX4) SALES TAX: -LARGEST SINGLE SOURCE OF STATE TAX REVENUES. -USER’S TAX: ALL TAXPAYERS TAXED EQUALLY -REGRESSIVE: LOWER INCOME GROUPS BEAR MORE BURDEN
    • 14) WHAT STADIUM DID THE CITIZENS IN & AROUND DENVER AGREE TO FUND THROUGH A SALES TAX? INVESCO FIELD AT MILE HIGH-INVESCO PAID $120 MILLION FOR THE NAMING RIGHTS.-8/16/2011: SPORTS AUTHORITY TOOK OVER THE NAMING RIGHTS OFTHE STADIUM IN A 25 YEAR AGREEMENT WORTH $6 MILLION/YEAR.
    • SOFT TAXES (4)1) TOURISM TAXES:-TAX PLACED ON “TOURIST” SERVICES.-HOTEL & RENTAL-CAR ARE MOST COMMON FORM OF TOURISM TAXES.2) ENTERTAINMENT TAXES:-PERHAPS BEST METHOD OF TAXATION TO CONSTRUCT A PROFESINAL SPORTS FACILITY.-TAX PLACED ON A TICKET PURCHASED FOR AN EVENT.-TAX ONLY PAID BY END USER.3) SIN TAXES:-A TAX ADDED TO PRODUCTS/SERVICES THAT ARE GENERALLY SEEN AS VICES. -ALCOHOL, TOBACCO, GAMBLING, PROSTITUTION (NEVADA).4) PLAYER TAX:-43 STATES IMPOSE TAX ON INCOME EARNED BY VISITING PLAYERS.-STATES HAVE THE RIGHT TO TAX NONRESIDENTS ON INCOME RECEIVED FOR SERVICESPREFORMED WITHIN THEIR BOUNDARIES.-GENERALLY BASED ON THE NUMBER OF DAYS THEY PERFORMED IN THE STATE MULTIPLIEDBY AVERAGE GAME SALARY.