Table Of Content

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 35111 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