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To engage and illustrate our discussion of Sports and Economic Development, please post examples: e.g., funding of stadiums or sporting events, economic impacts, competitions between cities for teams, Olympics, the World Cup, the Super Bowl and other events. I encourage a wide variety of examples from around the world, from permanent teams to one-off events, and both professional and amateur sports (including college sports).
Instructions for students: everyone registered in UP538 has editing access to this document; be sure to click "sign in" at the bottom of the page (using your UM account if you are not already signed in), and then click on the pencil icon above to edit. Format: be sure to give your entry a simple title, a comment (where appropriate), and your name.
I have started the page with a few examples. Please add your own (brief entries are fine, such as an image, an article link or a quote; images optional; please list all sources). Thanks! Scott Campbell
When Teams Leave, What Do You Do With the Stadium? Houston’s sports teams left the Astrodome over a decade ago, and leaders still don’t have the answer. Ryan Holeywell, Governing Magazine. Dec. 2011.
When Teams Leave, What Do You Do With the Stadium? Houston’s sports teams left the Astrodome over a decade ago, and leaders still don’t have the answer. Ryan Holeywell, Governing Magazine. Dec. 2011.
image source: from the published article
posted by: SC
Adam Taylor, 2013. Why The Beijing Olympics Were A Huge Mistake For China. Business Insider. March 27.
"The 2008 Beijing Olympics were huge for China, a $42 billion chance to put the country on the world stage. Half a decade later, however, it's not clear whether that money was well-spent."
image source: from the published article
see also:
Zhang, M., Chen, L., Lei, O., & Malone, C. (2013). Residents' perceived social-economic impact of the 2008 beijing olympic games. The ICHPER-SD Journal of Research in Health, Physical Education, Recreation, Sport & Dance, 8(2), 19-25. [I posted a pdf copy in ctools.]
posted by: SC
University of Michigan expanding its "athletics campus":
STEPHEN M. ROSS ATHLETIC CAMPUS ATHLETICS SOUTH COMPETITION AND PERFORMANCE PROJECT
Budget: $168 million
Square Ft.: 280,000 gross sq. ft.
Initiative 91: Seattle Rejects Sports Subsidies
by Patrick Linder
In November of 2006, Seattle voters passes Initiative 91 by and "overwhelming margin." The initiative was designed to rein in the spending of public funds on sporting projects which would not pay back. The Initiative was surprisingly simple, it prohibited Seattle from supporting teams with city tax dollars unless such investments yield a profit on par with a 30 -year U.S. Trasury bond. At the time U.S. Treasury bonds were at 4.75% but currently trading at 2.74% (Mar 2016). This initiative was launched early in 2006 when the owners of the Seattle Sonics and the Storm (WNBA) increased their efforts to leverage a more profitable lease of KeyArena along with major overhaul of the Seattle stadium. While Major Greg Nickles argued the Initiative might have gone too far, there was no large-scale opposition. While the owners of the Sonics initially said they would rather stay in the Washington suburban area, this didn't materialize. The Seattle Sonics stayed until the end of the 2007-2008 season and then relocated to Oklahoma City, Oklahoma under the new name of "Oklahoma City Thunder
."
The absence of the Seattle Sonics could have been a problem in the short term, the distance between Initiative 91 passing in 06' and the Sonics seasonal contract being up in 08' provided enough time for the stadium to gain and retain new potential business. The stadium continues to host various concerts and events like the DOTA2 gaming convention. This showcases the ability of a city to demand its profitability and success be respected by the teams which inhabit its spaces.
Target Center vote draws attention to other funding shortfalls
City Council makes a decision on Friday, March 18, 2016 on whether or not to invest $129 million in renovations to the Target Center.
It will cost $5.5 million a year that will be paid by city sales tax, downtown liquor and restaurant taxes and a hotel tax. 38 percent of the renovations will be paid by the Timberwolves.
It is certain to pass since the city feels obligated to maintain the facility, since they own it and are unable to sell it.
Opponents say the city is not spending on its priorities and needs ($30 million shortfall per year in basic road maintenance; $14 million shortfall in park maintenance; shortfalls in firefighter and police staffing levels).
Roper, E. (2016, March 14). Target Center vote draws attention to other funding shortfalls [Web log post]. Retrieved from http://www.startribune.com/target-center-vote-draws-attention-to-other-funding-shortfalls/372016991
Christina McEmber
Atlanta Braves Stadium
Alexandra Horst
About two years ago, the Atlanta Braves announced they would be moving from Turner Field in the city to a new stadium to be built in suburban Cobb County for the 2017 season. This decision, a surprise to the city, led to a great deal of controversy and hard feelings between leadership of the city of Atlanta, the team, and Cobb County, which have been detailed in many articles in The Atlanta Journal-Constitution. According to one on February 19, 2016, “Unsurprisingly, it was, in the end, mostly about money. Cobb simply offered more.” Turner Field was built for the 1996 Olympics and “designed with the Braves in mind 25 years ago to keep the team’s eyes from wandering.” Nonetheless, Cobb County made a better financial offer, and the Braves decided to move away to Cobb. The author of this article believes that both Atlanta and Cobb County need to reconcile with the reality and move on. The decision by the Braves to move to Cobb County for economic purposes has been a big issue in Atlanta, creating a great deal of controversy and having many implications for economic development in regards to both redevelopment of Turner Field and development of the new SunTrust Park.
Source:
Roughton Jr., B. (2016, February 19). Atlanta must move on from Braves divorce. The Atlanta-Journal Constitution. Retrieved March 14, 2016, from http://www.myajc.com/news/news/opinion/atlanta-must-move-on-from-braves-divorce/nqS6J/.
Image Source (left):
Gray, B. (N.d.). The 2016 season will be the Braves’ 20th – and last – in Turner Field. (Ben Gray/bgray@ajc.com) [Photograph]. The Atlanta Journal-Constitution. Retrieved March 14, 2016, from http://www.ajc.com/news/sports/baseball/braves-fans-buy-up-tickets-to-say-goodbye-to-the-t/nqT72/.
Image Source (right):
AJC File Photo. (N.d.). Rendering of SunTrust Park. (AJC FILE PHOTO) [Photograph]. The Atlanta Journal-Constitution. Retrieved March 14, 2016, from http://www.myajc.com/news/news/local-govt-politics/braves-we-will-exit-turner-field-by/nnJ34/.
Tokyo 2020 Olympics Stadium Controversy
Theresa Chua
The Tokyo 2020 Olympics Stadium is a classic example of a controversy over a stadium project. In Tokyo, this debate has been especially fierce due to the design being awarded to the foreign starchitect Zaha Hadid.
Her designs are notorious for their flamboyant forms and high costs. The cost of this project has skyrocketed and the stadium was scrapped due to opposition by both local architects and the Japanese people. Yet, it is arguable that more costs have been incurred by delays and another design competition held for the stadium.
http://www.nytimes.com/2015/01/05/arts/design/olympic-stadium-in-tokyo-is-dogged-by-controversy.html?_r=0
http://www.cnn.com/2015/07/17/asia/japan-tokyo-olympic-stadium-scrapped/
Post Era of Beijing Olympic Games
What does the Olympic Games bring to Beijing? How does it affect the economic growth of the city? As the table shows below, most cities experienced a high GDP growth rate a year before the event and the rising impact of GDP decreases after the event. Some cities hit a higher GDP growth rate at the holding year, while only Atlanta and Munich experienced a lasting GDP growth after the event. The direct impact could be seen from the growth of GDP, investment, employment and consumption. Industries like building and construction, tourism, culture and real estate benefited most from the Olympics Games. Infrastructure also improved a lot during the Olympic era. Besides, cities clustering Beijing also improved their infrastructure and experienced a robust economic growth.
Image Source: Liuqian Huang. Research on Effect of Beijing Post-Olympic Sports Industryto China’s Economic Development. Energy Procedia. 5 (2011) 2097–2102
Apparently, Olympic Games impact penetrated into every aspects of city's development. The most significant impact could be seen in real estate market. As many countries in the world suffered from the financial crisis in 2007-2008, Beijing still kept strong in its economic growth. The annual growth of GDP in Beijing was 16.14% during 2002-2006, which should thank to the skyrocketing increase of real estate price.
Image Source: Tang, Yao, et. al. The Impact of Staging Olympic Games on Real Estate Price in Beijing. Research in World Economy. (Mar 2012):45.
Speaking of the current use of Bird's Nest, it tends to be diverse. For example, some music stars would hold their concerts in Bird's Nest. The stadium was also used for the friendly soccer games such as Barcelona Football team v.s. Beijing Guoan Football team. This also triggers another controversial topic: does the revenue of soccer game compensate for the huge cost of inviting a world reputable football club like Barcelona?
-Xiaoya Chen
http://thinkprogress.org/sports/2013/07/02/2236331/brazil-world-cup-olympics-economic-nightmare/
How Brazil’s Olympic And World Cup Dreams Turned Into A Nightmare
How Brazil’s Olympic And World Cup Dreams Turned Into A Nightmare
JUL 2, 2013 9:57 AM
CHECK LINK FOR PICTURES!
"....and together, the 2014 World Cup and the 2016 Summer Olympics, the first ever held in South America, were going to put the new Brazil on a world stage. The events were supposed to spark massive public investment into Brazil’s lagging infrastructure, put Rio de Janeiro, an already-popular tourist destination, on the map as one of the world’s must-visit cities, and make it clear that Brazil isn’t a country on the rise but a nation that has arrived. The influx of tourism and attention was going to flush billions of dollars into the Brazilian economy, and that money would be further reinvested into public goods."
Instead, the World Cup and Olympics have become a symbol of everything that plagues Brazil, from rampant government corruption to astounding levels of income inequality.
As their government hands over massive amounts of money for stadiums, Brazilians are wondering why politicians were asking them to pay more to ride the bus, why their overcrowded hospitals and crumbling schools aren’t built to “FIFA standards” in the first place, and why the prosperity they were promised seems like such a pipe-dream now.
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Estadio Nacional Mane Garrincha (new)
The Estadio Nacional Mane Garrincha was the most expensive stadium. (ESPN)
"Located in Brasilia, the country's capital, it hosted seven World Cup matches. The 72,000 capacity stadium cost $900 million to build -- three times the estimated cost, making it the most expensive World Cup stadium.
City officials estimate that it has cost another $2 million in public subsidies since the end of the tournament. Brasilia does not have a professional team, and most of the matches staged here have involved local semi-professional sides. Stadium offices are now set to be used by 400 civil servants as a way of minimising losses to the city, while its car park is doubling as a bus depot." --ESPN
BBC States: " Paulo, the city's administrative management secretary, said that while there were lots of reasons for Brasilia's financial problems, the Mane Garrincha was a significant factor.
"It's clear that the stadium was a major investment and it consumed a lot of the city's resources," he said.
Over the next month, around 400 civil servants from three local government departments will move into offices inside the stadium. According to local officials, the move will save the city some £2m a year in rent.
In the meantime, the city is also trying to save money by using the stadium car park as a bus depot."
http://www.espnfc.com/fifa-world-cup/4/blog/post/2492597/brazil-world-cup-stadiums-symbol-of-dubious-legacy
http://www.bbc.com/sport/football/32073525
Kelsey Reynolds
Post by Chloe Fagan-Tucker
S.F. mayor: Homeless ‘have to leave the street’ for Super Bowl
By Matier & Ross | USA Today Updated 4:27 pm, Tuesday, August 25, 2015
Nashville
Fifty seven year old homeless man Henry Broughton set up his tent on Howard Street in the middle of the sidewalk Wednesday July 15, 2015. Although San Francisco housed over 3000 homeless people in the last two years, the overall homeless count stubbornly remains about the same.
Summary: Mayor Ed Lee has come under fire once more for favoring relationships with corporations by forcing the homeless population to relocate to an area in the city that is out of sight of the Super Bowl City celebrations. This is a major issue because it has to do with the physical temporary displacement of the city's most vulnerable populations during sporting events. This is also fairly common practice when large sporting events come to an area, and often requires the use of a city's already constrained police force to do the moving and enforcement. Sadly, the homeless are often humiliated and uprooted when being forced to move. In San Francisco's case, the city's freelance artists and street performers that rely on the average tourist seasons and daily passersby for income were also forced out of the areas downtown for Super Bowl City, representing a huge loss of income for populations of artists that are likely below the poverty line and already barely able to afford a stable life in an increasingly expensive area.
Photo: Brant Ward, The Chronicle
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