Foundation Briefs Advanced Level September/October Brief Resolved

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Foundation Briefs

Advanced Level September/October Brief

Resolved: On balance, public subsidies for professional athletic organizations in the United States benefit their local communities.

Table of Contents

Table of Contents 2

Table of Contents 2

Defend Your Source 3

Defend Your Source 3

Authors 3

Organizations 8

Definitions 13

Definitions 13

On Balance Definition AMS 13

Professional Sports Organization Definition AMS 13

Level of Public Subsidies Defined. ASF 13

“Public subsidy” definition DAT 14

Topic Analysis One 15

Topic Analysis One 15

Topic Analysis Two 19

Topic Analysis Two 19

Topic Analysis Three 24

Topic Analysis Three 24

Pro Evidence 34

Pro Evidence 34

How Sports Subsidies Provide Economic Benefits 35

Other Ways that Sports Stadiums Benefit Cities AMS 35

Intangibles: Civic Pride AMS 36

Cities charge more property tax on stadiums than they’re worth DAT 36

Examples of Economic Benefits from Sports Subsidies 38

The Citizenry Benefits from A Consumer Surplus 38

Explaining a consumer surplus, Fj 38

Baseball stadiums can result in a consumer surplus, Fj 38

Further Analysis of the Irani study, Fj 40

NBA and NHL Arenas consistently create a net surplus, Fj 40

Consumer surplus is related to stadium subsidies, Fj 41

Economic Gain 42

Colorado State University Stadium Benefits Community AMS 42

Minneapolis’ Economic Benefit Grows AMS 42

Benefits of Jacobs/Progressive Field, Fj 43

Other Benefits of Jacobs/Progressive Field, Fj 43

Benefits of Coors Field, Fj 44

Other Benefits of Coors Field, Fj 44

Benefits of AT&T Park, Fj 44

Benefits of Petco Park, Fj 45

Benefits of National Park, Fj 45

Benefits of Target Field, Fj 46

Benefits of Cleveland Browns Stadium, Fj 46

Benefits of Lucas Oil Stadium, Fj 47

Benefits Of Minor League Stadiums 49

Minor leagues that are subsidized are a better investment than private minor leagues. ASF 49

Preferable Methodology. ASF 49

Minor League stadiums cause communal benefits. ASF 51

Minor Leagues are not comparable to Major Leagues. ASF 52

Minor League management causes economic gains. ASF 53

Minor Leagues Increase Per Capita Income $67 to $201. ASF 54

Minor Leagues Boost Per Capita Income .2 - .7%. ASF 55

Benefits of Springfield Falcons routine operating expenses, Fj 55

Springfield Falcons impact on local businesses, Fj 57

Springfield Falcons charity, Fj 57

Sports Help Other Industries 59

Statistics Demonstrate Far-Reaching Impact of Sports Sector AMS 59

Mega Events Help Build Infrastructure 64

Financial Impact of Super Bowl AMS 64

Superbowl Impact AMS 64

Positive Impact of the Olympic Games AMS 65

How Big Events Help Build Infrastructure AMS 66

Advantages of Hosting Big sports Events AMS 66

Economic Benefits from Track and Field Stadiums 68

Stadium Generates Huge Economic Impact AMS 68

Impact for Greensboro, North Carolina AMS 69

Des Moines, Iowa – Drake Stadium, Drake University AMS 70

Albuquerque, New Mexico – Albuquerque Convention Center AMS 71

New York’s 168th Street Armory Youth CenterAMS 71

Public Ownership of Teams is Effective 73

Public sports team ownership is effective as a safety net and funding mechanism DAT 73

Public ownership keeps subsidy costs reasonable, as opposed to private ownership DAT 74

Case study: the Green Bay Packers DAT 75

New Stadiums Revitalize Urban Communities 76

Case study from Cleveland’s Gateway Complex DAT 76

Stadium Funding is a Proper Infrastructure Investment 78

Cities can generate economic growth by developing the infrastructure for stadium areas DAT 78

Stadium financing is an effective cover for funding necessary infrastructure work DAT 79

Modern stadium construction projects are likely to reduce future costs for cities DAT 80

The Olympic Effect 81

Large sporting event championships generate income in surrounding communities. JCD 81

Regular season games generate revenue for local economies. JCD 81

Ex post studies claiming no net benefit are flawed. JCD 82

Large sporting events boost local businesses’ revenues. JCD 82

Large sporting events yield revenue years after the event due to tourism. JCD 82

Large sporting events increase quality of life for residents. JCD 83

Rental prices are higher in cities with professional sports teams. JCD 83

During these events the rental values are significantly higher. JCD 83

Hosting major sporting events promotes bipartisanship in local governments. JCD 84

The Olympics generate large amounts of income. JCD 84

The Olympics lead to job creation and training in host cities. JCD 84

The Olympics spur much needed infrastructure reform in host cities. JCD 85

Tourism will likely increase in the long term because of the Olympics. JCD 85

After the Olympics, Olympic Park has high probability of becoming a hub for business. JCD 87

Economic benefits from the Olympics will continue in the near future. JCD 87

The Benefits To Social Cohesion 88

Social Cohesion Reduces Crime. ASF 88

Sense of community decreases crime. ASF 89

Even one pro team greatly increases social cohesion DAT 90

Small, socially cohesive communities are more capable of attracting business DAT 91

Gentrification of Neighborhoods Is Good 92

Residents of gentrified neighborhoods don’t move out. ASF 92

Residents of gentrified neighborhoods have higher credit scores. ASF 93

Financial health of original residents increases. ASF 94

Credit scores of gentrified neighborhoods go up 8 points on average. ASF 94

People displaced by gentrification fare better in the long run. ASF 95

Con Evidence 96

Con Evidence 96

Stadiums Fail to Bring Large Economic Impact 97

Why Stadiums are a Poor Investment AMS 97

Sports Stadiums Fail to Bring Widespread Impact AMS 98

Why Sports Subsidies for Stadiums Fail to Produce Economic Benefits AMS 99

20 years of research has already concluded that sports are not an economy booster DAT 99

Sports teams replace employment and income instead of generating it DAT 100

Little Economic Impact AMS 101

By nature of their audiences, pro sports cannot generate economic expansion DAT 103

The hidden costs of stadiums, Fj 104

Professional teams don’t heavily impact local economies, Fj 104

A team leaving doesn’t impact the local economy, Fj 104

Funding a stadium can wreck cities’ credit DAT 106

Corruption in Sports 107

Tales of Corruption in Professional Sports AMS 107

Sports Institutions are Monopolies 109

Legislation Protects Sports Organizations from Laws Preventing Collusion AMS 109

NFL Corruption Benefits Executives AMS 110

Professional teams are too ludicrously profitable to warrant public funds DAT 111

Current tax law encourages cities to meet sports leagues’ egregious financial demands DAT 112

Case study: Seattle vs. OKC DAT 113

NFL teams are too highly incentivized to move to have a permanent local impact DAT 115

Problems with “Sports Diplomacy” 116

Sports Diplomacy Organization SportsUnited is Wasteful AMS 116

The Holdout Problem 117

How Sports Stadium Construction Causes Economic Problems AMS 117

Opportunity Costs of Public Funding for Pro Sports 119

Stadium construction saddles governments with annual debt DAT 119

Publically-funded stadiums financed by reallocation still tax cities’ citizens DAT 119

Pro sports funding is a false dilemma DAT 120

Funding for stadiums comes at the expense of better options, Fj 121

Baltimore’s new publically-funded stadium complex ravaged industrially-valuable areas DAT 121

Opportunity cost does not need to be financial. ASF 122

Funding Pro Sports Teams Is Against the Public Will 124

Municipalities fund pro sports teams in opposition to their voters DAT 124

Stadium construction referendums present a false dilemma for voters and taxpayers DAT 124

Teams use money to influence the democratic process, Fj 125

Amount of money spent is sometimes unprecedented, Fj 126

The public has no say. ASF 126

Teams are circumventing public displeasure and extracting more funds from governments DAT 127

Sports Industry Displaces Economic Revenue 128

Sports Industry Fails to Generate Economic Revenue Because it Displaces Other Forms of Economic Activity AMS 128

Stadiums reduce individual wages, Fj 129

Coates and Humphreys methodology, Fj 129

Minorities Are Marginalized By Stadiums 130

Stadium development projects in urban areas force out minority residents DAT 130

Native Americans 130

Stadiums are built on Native American Grounds. ASF 130

The Native American Community Is Upset At The Stadium’s Destruction of Culture. ASF 131

Native Americans are minimalized by stadium. ASF 132

Racism in sports is noticeable for Native Americans. ASF 133

Sexism and Discrimination in Sports 134

Perception of females in sports is objectifying. ASF 134

NFL cheerleaders make less than minimum wage. ASF 134

NFL Violates Union Rights 136

NFL illegally side-steps lockout. ASF 136

The NFL does not provide for the safety of players. ASF 137

Eminent Domain Is Bad 138

Eminent domain is not in the spirit of the law. ASF 138

Eminent domain is designed to rid the impoverished rather than help. ASF 139

The use of eminent domain has discouraged government to evaluate stadiums. ASF 140

Eminent domain ignores community definitions of benefit. ASF 141

The Downside of Mega-Events 142

Ex ante studies are fundamentally flawed. JCD 142

Ex post studies find little benefit from subsidizing professional athletic programs. JCD 142

Large scale sporting events carry steep price tags. JCD 143

Security concerns bring additional costs. JCD 143

Most economic estimates incorrectly apply multipliers. JCD 143

No existing evidence supports the claim that tourism increases in the long term from major sporting events. JCD 144

Any boosts to tourism are shortlived. JCD 144

The reputation of local cities are tarnished by major sporting events. JCD 144

The willingness for local populations to invest in sporting tickets for their local professional teams is a negligible gain. JCD 145

The effect on property values is extremely limited even within the host city. JCD 145

The rise of rent prices is not a good indicator of the effect of sports teams. JCD 147

Major sporting events such as the superbowl do not necessarily raise rental values. JCD 147

The effect of large sporting events on rental prices is negligible. JCD 147

The increase in rental values in Atlanta is likely due to outside factors that are ultimately harmful. JCD 148

The effects on rental values, on balance, is insignificant. JCD 148

The hosting process for the Olympics is propelled by private business interests. JCD 149

A conflict of interests arises when bidding for the Olympics. JCD 149

Benefits to bipartisanship in local governments are rather limited in scope. JCD 149

The environment large scale events like the Olympics are planned in are conducive to poor economic decision making. JCD 150

The use of these high maintenance facilities over time siphons from the potential benefits. JCD 150

The short term costs of the Olympics far exceeds the increased revenue. JCD 150

Public perception of the host city is not always positive. JCD 152

Tourism is not increased during the Olympics but rather it displaces the usual crowds in already popular tourist destinations. JCD 152

The cost of hosting major sporting events is huge. JCD 152

The cost of hosting major sporting events is grossly understated. JCD 152

The costs of hosting major sporting events is underreported. JCD 153

The cost of hosting largescale events continues to rise. JCD 153

Hosting the Olympics leads to other extraneous spending with little long term gains. JCD 153

Private business donations to hosting major events are rather limited. JCD 153

The Olympic economic effect is a myth. JCD 154

Forecasts on the effects of the Olympics are unreliable. JCD 154

Statistics citing profits from the Olympics are skewed. JCD 154

Most of the cost is put on the government. JCD 155

The London Olympics were not profitable. JCD 155

The methods used to measure the Olympics success economically is misleading. JCD 155

Private sector sponsors are unreliable for the Olympics. JCD 157

The Vancouver games were incredibly costly. JCD 157

The debt following the Vancouver Olympics is crippling. JCD 157

Development costs skyrocketed while preparing for the Olympics. JCD 157

Only small cities get a boost from mega events DAT 158

Pro Counters 159

Pro Counters 159

Urban Sprawl 160

In Defense of Urban Sprawl AMS 160

In Defense of Impact Analyses 162

Economic impact analyses for building stadiums can leave out economic benefits DAT 162

Substitution Effect rebuttal 163

Substitution effect does not take into account out of town visitors, Fj 163

Nashville Convention and Visitors Bureau study methodology, Fj 163

The Use of Eminent Domain is Justified 164

Constitutional basis for eminent domain, Fj 164

Meyer v. City of Cleveland,Fj 164

Berman v. Parker,Fj 165

Kelo v. City of New London, Fj 165

Stadiums Lack of Success Due to Other Factors 166

Study Basis, Fj 166

Downtown Location affects success, Fj 166

City Economic and Demographic Characteristics affect success, Fj 167

Walkability affects success, Fj 168

Public Transit affects success, Fj 170

Con Counters 172

Con Counters 172

Statistics from Sports Institutions are Inaccurate 173

Why the Pro Team’s Statistics are Imbalanced and Inaccurate AMS 173

Capital Costs Funded by Taxpayers AMS 173

The Math Does Not Add Up AMS 174

Flaws in Economic Studies Exposed AMS 175

A further examination of economic impact studies DAT 177

Economic impact studies entirely ignore opportunity costs DAT 178

Small markets vastly oversell themselves to justify excessive funding of local teams DAT 179

Public Subsidies are Not Good for the Public 181

How Public Subsidies for Stadiums Hurt the Public AMS 181

America’s Poorest Cities Overspend on Sports AMS 181

Pro teams bring the wrong kinds of jobs with them DAT 182

Sports Don’t Attract Outside Investment 183

Stadiums and their teams replace other local entertainment without adding extra value DAT 183

Stadiums are a poor tool for revitalization/gentrification efforts DAT 184

There is no “Public Good” 185

Public Good Argument Fails AMS 185

Civic Pride Leads To An Increase In Crime 187

Sport Franchises Hide Crimes For Positive Public Image. ASF 187

City-championed urban renewal projects drive up and redistribute criminal activity DAT 188

Mega Events Are Not Economically Justifiable 189

Subsidies for mega events drive up costs and lower standards DAT 189

Cases 190

Cases 190

Pro Case 191

Introduction: 191

Contention One: Consumer Surplus 191

Contention Two: Subsidies help centralize business 192

Benefits of Petco Park 192

Other Benefits of Coors Field 192

Benefits of Jacobs/Progressive Field 192

Contention three: Public ownership creates mutual interest 193

Con Case 195

Introduction: 195

Contention One: Sports Industry fails to generate economic revenue because it displaces other forms of economic activity 195

Contention Two: No Long Term Economic Impact 196

Contention Three: Opportunity Costs of Spending on Stadiums 197

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