Economic Growth
Stadium subsidies can lead to increased economic growth in the local community. Abbiasov et al. (2022) argue that the primary reason is that there will be an increased number of visitors to sports games and events. The primary businesses that benefit from these subsidies include restaurants, hotels, and shops. These businesses’ standard operating income increases considerably because of the additional income from the visitors. An increase in income leads to the development of better social facilities in the community that generate additional profit. Additionally, the construction and operation of the stadium can create jobs for the community members. People will work in the construction sites of the stadium and the stadium staff themselves, thus creating employment opportunities in the community, ranging from construction workers to stadium staff, boosting employment opportunities, as discussed by Bradbury et al. (2022).
Community Development and Infrastructure Improvement
Stadium subsidies have the requirements for community development and infrastructure improvements. (Howard and Crompton (2012) assert that Local governments may use part of the subsidy to upgrade transportation systems, build parks, or invest in other public amenities around the stadium. Therefore, the quality of life for residents is improved, and the community is made viable for further investment and development.
Negative Influences of Stadium Subsidies on a Local Community
Opportunity Costs and Fiscal Strain
Stadium subsidies require significant public investment. These subsidies will lead the government to divert funds from other essential services, including education and healthcare, to cater to the stadium subsidies. The allocation of resources can strain local budgets, leading to reduced funding for critical community needs (Abbiasov et al., 2022).
Limited Economic Returns and Risk of Debt
The stadiums are expected to generate anticipated revenue over time; however, this is only sometimes the case, and the burden goes to the taxpayers (Bradbury et al., 2022). For example, If the stadium attracts fewer visitors or events than expected, it may become a financial liability for the community. In some cases, cities have been left with empty or underutilized stadiums, meaning that the resources have been wasted and other forms of development have been missed.
The positive influences of stadium subsidies outweigh the negative ones.
Stadium subsidies supersede the development of a community that enhances general economic growth. Constructing a stadium creates jobs in various sectors, including construction, hospitality, and retail. Additionally, increasing visitors to games and events stimulates spending in local businesses that generate revenue and support job retention and creation (Howard & Crompton, 2012).
Furthermore, the stadium fosters a sense of community cohesion and belonging because It provides a venue for residents to gather and celebrate shared interests. These interests vary from supporting a local sports team to attending cultural and entertainment events. The sense of belonging has a significant positive effect on a community’s welfare and social fabric (Bradbury et al., 2022). Moreover, Stadium subsidies frequently include provisions for infrastructure improvements and urban revitalization in the surrounding area. The quality of life for residents can be improved by creating investments that enhance transportation and the public. A community’s economic growth can further be enhanced by revitalizing underutilized areas near the stadium that can attract further private investment and development. Additionally, Abbiasov et al. (2022) emphasize that Stadiums can attract tourists and visitors from outside the local area who contribute to the growth of the hospitality industry. The community’s reputation will be enhanced, and it will be considered a desirable destination for visitors and businesses for sports through hosting major sporting events, concerts, and other cultural performances.
In conclusion, the positives outweigh the negatives since stadium subsidies can yield long-term returns through increased tax revenue and property value appreciation. Ideally, stadiums that are well-managed and well-managed with diverse programming and revenue streams are sustainable assets for the community that provide ongoing economic and social benefits for many years.
References
Abbiasov, T., Sedov, D., Abbiasov, T., & Sedov, D. (2022). Do Local Businesses Benefit from Sports Facilities? The Case of Major League Sports Stadiums and Arenas: Do Local Businesses Benefit from Sports Facilities?https://www.dsedov.io/src/slb.pdf
Bradbury, J. C., Coates, D., & Humphreys, B. R. (2022). The impact of professional sports franchises and venues on local economies: A comprehensive survey. Journal of Economic Surveys. https://doi.org/10.1111/joes.12533
Howard, D. R., & Crompton, J. L. (2012). Financing sport. Morgantown, WV: Fitness Information Technology.
write