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Originally Posted by whatnext
Don't give tax breaks to organizations that pay employees millions of dollars?
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Sometimes when cities give tax breaks to sports franchises or subsidize stadium construction it amounts to a vanity project that never breaks even.
But don't throw the good out with the bad. Sure, some cities build open air football stadiums that can only be used for half the year. In that case, you might as well light money on fire. But some stadiums are regularly booked with hockey then basketball then a concert then hockey then a conference back-to-back-to-back-to-back on a regular basis. Not only can those stadiums break even on their own, but with all the neighbourhood-level economic activity a large sporting or cultural event generates those stadiums can be a coup for the local economy.
Some of the key attributes that ensure a profitable stadium include:
- In a best-case scenario get private interests to pay for it. That way the city gets all of the positive externalities but doesn't have to incur debt.
- Make damn sure the stadium will have a permanent tenant that has at least 30 to 40 events per year. In an ideal world the stadium would have multiple tenants such as an NHL and PLL team, or an NBA and WNBA team.
- Make sure the stadium is flexible for a variety of uses. I don't mean build a crappy dual purpose football and baseball stadium, but make sure you arena has all of the capabilities conferences, concerts, speaking tours, and exhibitions look for.
- Locate the stadium in a local commercial district, or build a new one around the stadium. It is such a wasted opportunity that the L.A. Dodgers and the Saskatoon Rush and the Kansas City Chiefs all play in stadiums surrounded by surface parking lots. Put your stadiums near downtown or another commercial district where those thousands of fans can pour out of the stadium and spend money at local bars, restaurants, casinos, hotels, or shops.
And I wouldn't be doing my job as a sports fan if I didn't point out the non-economic benefits a local professional sports team can bring. It is unquestionable that having the Trail Blazers gives thousands of Portland residents a common identity. And when everything aligns perfectly and the Canucks win the Cup, you will never see the city more united behind one cause.