trends in sport facility

Question 1

(1961-1969)
Government started to finance an construct facilities for franchises
Basic facilities /Little drive for profitability

Answer 1

The Civic development era

Question 2

(1970-1984)
The peak of government funding for sport facilities
18/22 were 100% publicly funded
Active period of expansion and relocation

Answer 2

The public subsidy era

Question 3

Era (1985-1994)
Gov. assumes diminished roles  joint ventures
Deficit Reduction act of 1984 /Tax reform act of 1986

Answer 3

The Transitional (Public-Private Partnership) era

Question 4

Era (1995-present)

Still public-private partnership, but private party takes a bigger role

Answer 4

The “Fully Loaded” (Private-Public) era

Question 5

prohibited the use of tax-exempt bonds to finance luxury boxes

Answer 5

1984 Deficit reduction act

Question 6

tax-exempt bonds could not be used to finance sport facilities if more than 10% of a facility’s revenues came from a single tenant such as a professional sports team.

Answer 6

Tax reform act of 1986

Question 7

High-end luxury spaces which cost millions of dollars with long-term deals

Answer 7

founders suites (typically 10-14)

Question 8

Notre Dame : classroom space @ stadium
Oklahoma: offices/labs
Arizona State: student hall / “dry” club

Answer 8

multi use spaces

Question 9

Lucrative TV deals and other increased revenues drives renovations

Answer 9

financial flexibility

Question 10

Existing stadiums were given until 1995 to meet these standards, if minor league teams can’t meet the standards, they will lose major league affiliation and their player development contracts.

Answer 10

A-58 specified minor league facility standards and compliance inspection procedures.

Question 11

The benefits that the community would garner if the money were spent elsewhere instead of on a sports facility.

Answer 11

opportunity costs

Question 12

Who pays for and who benefits from major new facilities?

Fairness issue

Answer 12

equity issue

Question 13

1. Owner leverage; The legal status of professional sports
2. The community power structure
3. Shift to selective taxes

Answer 13

sources for momentum for public subsidization

Question 14

There are a large number of cities seeking pro. franchises, which is outnumbered the available supply of teams
A competitive environment created by the imbalance of supply and demand

Answer 14

owner leverage

Question 15

The leagues have used their monopoly power to limit expansion
Control location/relocation of teams
Restrict inter-team competition for players
Control the rights to the broadcast of games

Answer 15

owner leverage

Question 16

The power groups in the community benefit from a franchise and/or the construction of a new facility.

Answer 16

community power structure

Question 17

Voters are more receptive when selective taxes (e.g., hotel/motel tax, rental car tax, sin tax) were used for a project
The burden of tax is on a selective group (e.g. tourists, smokers etc)

Answer 17

shift from general to selective taxes

Question 18

The growth of environmentalism/sustainability
Seating capacity gotten smaller in new stadiums- better engagement
Facility can create a more memorable and enjoyable experience
Training facility has seen a big change including biometric monitoring/recovery areas

Answer 18

trends in sports facility