The construction of professional sports arenas: funding and politics.

186 Pages·2.6 MB·en_US

by  Ferguson, Howie Scott.

THE CONSTRUCTION OF PROFESSIONAL SPORTS ARENAS:
FUNDING AND POLITICS
by
Howie Scot Ferguson
//
A REPORT PRESENTED TO THE GRADUATE COMMITTEE
OF THE DEPARTMENT OF CIVIL ENGINEERING IN
PARTIAL FULFILLMENT OF THE REQUIREMENTS
FOR THE DEGREE OF MASTER OF ENGINEERING
UNIVERSITY OF FLORIDA
Summer 1996

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TABLE OF CONTENTS
Chapter One - Introduction 1
ChapterTwo - The Importance ofSports 4
The Growth ofSports 4
Sports Teams as Economic Engines 5
Sports Teams as Image Builders 9
ChapterThree - "IfYou Build It, He Will Come" 1
Indianapolis, Indiana 12
Tampa Bay, Florida 1
St. Louis, Missouri and Baltimore, Maryland 1
Other Efforts 17
Chapter Four - The Importance ofSports Facilities 19
Building Boom 19
Team Worth 22
Salaries and Revenue Sharing 26
The Cost ofOwnership 27
Chapter Five - Stadium Revenue Generation 29
Luxury Suites f 29
Seat Licenses 32
Stadium Advertising and Corporate Sponsorship 34
Facility Amenities 36
Control ofFacility / Corporate Ownership 37
Chapter Six - Funding Sports Facilities 4
Public Financing 42
Private Financing 48
Project Delivery System 5
Chapter Seven - Politics and Legislation 55
Threats and Promises 55
Antitrust 59
Tax-Exempt Bonds and Sports Authorities 62
Public Team Ownership 65
Chapter Eight - Conclusion 68
Appendix A - Facility and Worth Summaries ofthe Four Major Sports 72
Appendix B - References 76

'
CHAPTER
1
INTRODUCTION
The popularity and influence ofprofessional sports is at an all-time high. No
longerjust anice diversion or "national pastime", sports is now, in fact, athriving
industry that permeates nearly every facet ofthis country's culture. Along with that
popularity, ofcourse, comes money, and the tools with which to harvest it are the
stadiums and arenas being erected in record numbers around the country. They are
expectedto be conduits offinancial well-being, both for the teams and theirhost cities,
and are the subject ofdebate in nearly every medium to large community in North
America.
Sports arenas are now absolutely vital to the teams they house. Years ago, teams
that were worth the most and, often, played the best, were those located in the biggest
cities. A steady stream ofticket-buying fans was all thatwasneededto stay financially
afloat. Later, fattelevision contracts allowed all teams to share in theprofits, butthe
growth ofthose monies slowed, while player salaries continued to escalate. Now, the
revenue source thatteams, large and small-market alike, seek to capitalize on are those
producedbythe facilities they play in. As explained in arecentexpose on the subject of
professional sportsby theDallasMorningNews:
Morethaneverbefore, the additional moneythat owners want comesfromthe
stadiumorarena. Baseball, football, basketball, and hockeyteams are converting their
facilities into cashcows, thanks largelyto luxury suites and generousleases. The most
profitableteamswill bethosethat can take the most money out ofwhere theyplay.
That'swhythere'sa slew offacilitiesbeingbuilt. That'swhya record numberof
franchisesaretalkingabout moving. That's whyowners arecozyingup to corporate
America.
The pro sports arenais also important to cities because sports teams are visualized
by communities as catalysts ofboth economic development and civic pride. As such, the
fields they play on are the primary means to reach one orboth ofthose ends. That is, the