Sport Finance Opinion

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Case Study Sport Finance Gerald Zoppi The decision to subsidize sport facilities for professional sports has been a topic and a debate for concern especially within the last twenty years. An analysis done in 1998 highlights the importance of knowledge regarding the false and real perceptions of attracting a sports team through stadium development using tax dollars put up by the surrounding community. The author of this study wanted to emphasize his opinion that supporting these franchises through subsidies has a perceived negative impact on a community because of the lost cost it endures. It is stated in this study that if money spent by the public sector goes to a stadiums construction, then the same investment might have boosted a city’s image or its residents’ self-esteem even more. For example, a small market city like Milwaukee would benefit from a professional franchise because of the added entertainment value that the team has. However, the average taxpayer who was taxed for the building of that stadium and supporting a player’s salary could not afford ticket prices. There is no benefit because the amount given yearly exceeds 500 million. With the threat to relocate as the main factor for supporting a subsidy a community recognizes that professional sports teams are a good investment (knowing full well that they are really not). We like having something to enjoy with our community together, so we are willing to support the strange fact that in no county in the entire United States of America does sports account for more than .5% of the private sectors payroll. The three real reasons why we subsidize sports team are an interesting glimpse into real world business application. Reason number one is that cities have to bid against one another in order get the chance to have a sports franchise. Leagues hold back on allowing teams in all capable

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