Test 3 Notes - Test 3 Notes Public subsidy justifications o...

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Unformatted text preview: Test 3 Notes Public subsidy justifications o Financial challenges Many hurdles? Poor economic conditions Declining ratings due to saturations Declining attendance Economic disconnect Very expensive to go to these games Very expensive to build Deal with overrun costs which could be more than the actual cost to build Equality argument: who pays and who benefits? o Subsidy questions Are stadiums profit centers for cities based on direct economic impact? Some argue yes and some argue no No because some stadiums dont end up becoming an profitable entity for the city because of fleeting honeymoon effect Yes because the construction creates jobs, and brings outside money into the city. Used for different events other than the primary sport Are subsidies justified? The average subsidy from the local taxpayer is about 7 million dollars Spillover benefits o Increased community visibility Creates identity The personal connection and emotional involvement that consumers have with a team, region, place, etc. Recruitment Companies may be swayed one way over another because of the type of the identity Visibility Show areas of city to create an identity What events would create the most visibility? Big events: championships, all-star games, Olympics, international events, world cup, super bowl. Increased awareness Image the way other people view you. Comprised of how you/organization views them. Organizations create their own image. Place marketings: striving to sell the image of an area to make it more attractive for businesses etc. Status How many professional sport organizations reside in the area Spatially distinct areas of economic activity that promote employment and population growth and also are the envy of other cities Governance The government official wants the facility because the construction of the stadium will leave a mark on their time in office Show the level of competence of the local government Government will also by symptomatic to the cities issues by trying to inject economic activity into the people o Stimulation of other development Cumulative attraction Stadium is the economic engine that drives economic activity Visitors use some form of transportation to reach that destination These people spend money and stay some amount of days Integrated, coherent, master plan Leaders must create this broad vision of city beyond just the facility The building is not seen as the catalyst Building must be constructed in what is called a sea of commerce Do this by channeling fans through the downtown corridors of economic activity Development components Proximate development o Use of development to jumpstart the economic conditions of an area o Takes rundown and makes it downtown o Takes time and has to revolve around the facility Complementary development o...
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Test 3 Notes - Test 3 Notes Public subsidy justifications o...

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