Foundation Briefs Advanced Level September/October Brief Resolved


Sports Industry Displaces Economic Revenue



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Sports Industry Displaces Economic Revenue


Sports Industry Fails to Generate Economic Revenue Because it Displaces Other Forms of Economic Activity AMS

Slivinski, Stephen. “Do sports teams really drive economic growth?” Goldwater Institute. May 8, 2012. http://goldwaterinstitute.org/blog/do-sports-teams-really-drive-economic-growth

As an extensive 2008 review of the peer-reviewed economic studies published over the past 20 years concludes: "No matter what cities or geographical areas are examined, no matter what estimators are used, no matter what model specifications are used, and no matter what variables are used, articles published in peer reviewed economic journals contain almost no evidence that professional sports franchises and facilities have a measurable economic impact on the economy."



One of the main reasons sports teams and the facilities in which they play are not drivers of economic growth is because they don't create new economic activity. Instead, they displace other forms of economic activity.

For example, imagine you were going to spend money on a night out. You could spend it on an expensive dinner or you could spend it on tickets to a sporting event. But because you have a limited amount of money to spend, you wouldn't spend it on both.

This substitution of one type of spending for another is exactly what you see happening when you analyze the experience of cities with sports teams. Consumers spending more of their discretionary income on sports-related goods is offset by those same consumers spending less on other things. Thus, no net new economic activity results.

Another point economists make is that most of the profit generated by sports teams go to the players, owners, and shareholders of the team. Those individuals tend not to live in the area in which the team plays. Instead, the money is "exported" to be spent or invested elsewhere. This reduces or eliminates the "ripple effect" that sports teams have on the local economy.

Stadiums reduce individual wages, Fj

Coates, Dennis and Humphreys, Brad. “The Effect of Professional Sports on the Earnings of Individuals: Evidence from Microeconomic Data” UMBC Economics Department. September 11, 2003.

This paper explores the impact of professional sports teams and stadiums on the wages of individuals employed in several narrowly defined occupational groups in cities in the United States. The occupational groups examined are among those that proponents of public funding of professional sports claim will benefit economically from these stadiums. Our analysis uses data from the March Supplement to the Current Population Survey (CPS) for the period 1977 to 1998 as well as sports variables previously utilized by Coates and Humphreys (1999), (2001). Previous research focused on aggregate measures of income whereas here the focus is on the wages of individual workers. The results of the study confirm conclusions of earlier research that the overall sports environment is frequently statistically significant as a determinant of earnings and that the predicted mean impact of sports on wages in a sample of individuals employed in occupations closely related to professional sports is an annual average decrease in real earnings of $47.95.
Coates and Humphreys methodology, Fj

Coates, Dennis and Humphreys, Brad. “The Effect of Professional Sports on the Earnings of Individuals: Evidence from Microeconomic Data” UMBC Economics Department. September 11, 2003.

Our analysis focuses on the effect of the professional sports environment in cities on labor market outcomes for workers in several specific occupations. These occupations include food service, such as waiters and waitresses, cooks, busboys, and restaurant managers, lodgings, such as hotel clerks, maids, and bellhops, retail sales, including cashiers and sales personnel and sales managers, and in amusements and recreation, including athletes, ushers, and radio and television announcers. Data on individuals reporting one of these occupations was extracted from the Current Population Survey (CPS) March Supplements for the years from 1977 to 1998. We collected data on 53, 052 individuals spread about equally over the 22 years from 1977 until 1998. From Table 1, hotel workers make up about 5% of the sample, food services about 46% and retail workers about 47% of the sample collected from the CPS.


Minorities Are Marginalized By Stadiums



Stadium development projects in urban areas force out minority residents DAT

Lewandowski, James, and Steve Stover. “Urban Redevelopment, Baseball, and Displacement in Washington D.C.” West Chester University. 2007. Web. http://www.msaag.org/wp-content/uploads/2013/04/7_Lewandowski_Stover.pdf

This study estimates the housing displacement of minority residents located in and around the proposed site for a baseball stadium in Washington, D.C. Total displacement, direct (18) together with indirect and secondary displacement (8,167), is estimated to be 8,185. While this displacement may seem small, numerically, the underlying circumstances of redevelopment in the area pose significant problems for minority residents. Unable to move because of economic conditions in the district and in surrounding housing markets, they face a difficult choice: absorb increases in housing costs within the redeveloping area or absorb increases in total living costs associated with a move to some new location with lower subsidies.



Given that stadium development projects happen under the cover of urban redevelopment projects, they are often situated in communities which are mostly poor and minority. If we look at the local community as the people occupying the space (and not the space itself) the impact of stadium development is a squeeze of the local community.

Native Americans


Stadiums are built on Native American Grounds. ASF

Cass, Michael. The Tennessean. “Metro Council approves Nashville Sounds ballpark deal.”



Metro government will build and own the Sulphur Dell ballpark and lease it to the Sounds for 30 years. The Triple A baseball franchise will operate and manage the facility and be responsible for maintenance costs. The Sounds will get to keep revenue “generated through ticket sales, broadcasts, advertising and the like,” according to a summary of the lease terms. Metro will be responsible for capital expenses “necessary to keep the ballpark in good condition,” such as roof and seat replacements.

Metro’s debt service is expected to cost $4.3 million a year for 30 years. The city plans to pay the debt with:

$700,000 the Sounds would pay each year to lease the stadium.

$650,000 a year in sales tax revenue generated by the facility.

$750,000 in annual property tax revenue from a $60 million residential and commercial development the Sounds’ owners plan to build nearby, although they aren’t contractually obligated to do so.

$675,000 in annual property tax revenue from another developer’s planned $37 million apartment development nearby, although that developer, Embrey, also is not contractually obligated to build.

$520,000 a year in existing tax-increment financing, a tool that uses the growth in property tax revenues from selected developments to pay off debt that was used to subsidize them.

$250,000 that Metro now puts into Greer Stadium each year as part of the city’s budget.

$410,000 that Metro now pays the state annually to lease property for the Nashville School of the Arts (the city is buying that property).

• $345,000a year in new expenses for Metro.



About 45% of the new Sulphur Dell Park will be funded through money collected on taxes. This is a significantly high amount of public subsidization.
The Native American Community Is Upset At The Stadium’s Destruction of Culture. ASF

Allyn, Bobby. "Native American Activists Could Sue The City of Nashville Over Ancient Remains" Nashville Public Radio. April 23, 2014. http://nashvillepublicradio.org/blog/2014/04/23/native-american-activists-could-sue-the-city-of-nashville-over-ancient-remains/

Native American activists are asking Nashville Mayor Karl Dean to halt the construction of a new minor league baseball stadium after archeologists discovered ancient artifacts. One Native American activist said a lawsuit could follow if the city ignores their demands.

Activist Albert Bender writes about Native American history for a living. He said more time should be given to archeologists to study the site. Bender considers next spring’s scheduled opening date of the new $150-million-dollar Sounds Stadium to be arbitrary.

“What is the problem with halting the construction of the ballpark for a few months to a year, when we’re talking about thousands of years of history that is waiting to be unearthed?” Bender asks.

What archeologists dug from the earth were ancient pottery used to boil water in the production of salt, which was then exported around the South some 800 years ago.

Native Americans are minimalized by stadium. ASF

Gee, Brandon. “Native American group objects to Sounds stadium construction”. Nashville Business Journal. http://www.bizjournals.com/nashville/morning_call/2014/06/native-american-group-objects-to-sounds-stadium.html
The American Indian Coalition may sue Metro government over construction of a new Nashville Sounds baseball stadium at Sulphur Dell.

Mayor Karl Dean’s office says the project complies with regulations for construction on ground housing artifacts,NewsChannel5 reports, and also has offered to construct a memorial wall and install artwork honoring the area’s history.



An official with the American Indian Coalition is unsatisfied, however, calling the offer “minimalization”

and wants construction delayed or stopped.

Racism in sports is noticeable for Native Americans. ASF

Fenelon, James V. “Survey on Redskins team name found most American Indians believe it to be offensive and racist.” 2004. Press Release – Center for Indigenous Peoples’ Studies. http://cips.csusb.edu/docs/PressRelease.pdf
The Center for Indigenous Peoples Studies at California State University, San Bernardino has conducted a study on racial and ethnic perspectives on the team name Redskins and associated issues, and found that the large majority of American Indians, when properly identified and polled, find the team name offensive, disrespectful and racist.
The first question on the survey tells the basic story: The Redskins team name is a racial or racist word and symbol. American Indians were 67 % in agreement, 12 % were neutral and 20 % disagreed with the statement. Other ethnic groups are spread across the three major categories of seeing the term Redskins as racist, as neutral, or disagreeing in seeing Redskins as racially offensive. Whites were 33% in agreement, 26% neutral, and 41% disagreed the term was racial, generally the reverse of American Indian responses. The neutral category played a significant role for whites in allowing them to not be seen as “racist” –upon further analysis more than 60% of whites reject the term Redskins as racist, while more than 60% of Indians see the term Redskins as racist.

Though the community cries out, because they are a minority group their voice is not as strong and thus the franchise maintains its name, despite it being blatantly offensive. When running an argument such as this it is important to incorporate a framework that stresses the systemic harms to minorities as a value to prioritize in the debate. In order to make a judge care about this impact you must stress that the system is designed to drown out the voice of the victim, and throw the problem to the side, so it is crucial that we put that voice at center spotlight.



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