Alternate Justifications for Public Subsidy Sport Finance

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Alternate Justifications forPublic
SubsidySport Finance
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• 4 Alternative Sources of Spillover Benefits
• Increased community visibility
• Enhanced Community Image
• Stimulation of other development
• Psychic income

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The four benefits can also be applied to college
sport and other community based sport programs as
well.
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Increased Community Visibility
When lobbying for public subsidies for facilities
the relationship of community exposure and team
visibility is heavily used. It aids in the
recruitment of getting businesses to relocate
and that leads to the citys economy potential.
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Professional sport franchises create significant
media coverage

• The possibility of the franchise name being
  broadcast for several days via television, radio,
  all print media, (and the internet) Thousands
  to Millions in Public Relations
• National coverage when hosting All-Star Games,
  Play-offs, or Championship Finals adds to the
  media coverage a city or region can receive.

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Some negative aspects of Exposure

• Can create friction between public entities.
• Team use of state or regional identity instead
  of using the citys name (i.e. the Colorado
  Rockies).
• Some teams play out of geographic zones (i.e.
  New York Giants play in New Jersey, Detroit
  Pistons play in Auburn Hills).

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Justification of Value
The crude dollar-value is derived by the
scientific measure of media exposure and
advertising rates in the media in which it
appears.
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• Visibility may translate into
• Economic Impact through increased tourism that
  extends into the future.
• Examples
• Soccer World Cup
• Winter Olympic Games
• Super Bowls in warm-weather climates

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What is community image?
Image is a mental reconstruction of a place in
a persons mindperceived reputation or
character.
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• Place Marketing
• Some refer to using sport to enhance
  community image as
• place marketing.
• Marketing that sells the image of a place so
  as to make it
• more attractive to businesses, tourists,
  and inhabitants.

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In the Past
Tall Building-Tower Skylines Large-Span
Bridges Manufacturing Industries All have
shaped community images.
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The Present

• The economy is in a service orientation mode.
• That is why major sports events and teams are the
  
• embodiment of the citys image.

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• Machiavellian Rationale
• Justifies the displacement of poorer people
  living in cities.
• Increasing gentrification of sport. Removes the
  working class/poorer people and replaces them
  with a more affluent clientele.
• Affluent clientele/deep pockets attract more deep
  pockets from business and tourism sectors.
• Is thought to contribute to upgrading and
  enhancing the citys image.

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Is the image enhancement long lasting?

• Image enhancements based on sporting events may
  decrease overtime.
• To avoid dropping out of the spotlight cites
  must have a strategy plan in place to sustain and
  nurture growth of its image awareness.

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Stimulation of Other Development
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The Glue Principles for Downtown Development

• Having a threshold level cumulative attraction.

• The more entertainment attractions in one area
  will do more business than if those attractions
  are wide-spread.
• Persuades people to shop downtown (stores), eat
  downtown (restaurants), stay downtown (hotels),
  and entertain downtown (theaters, etc.). Gives
  people a reason to go downtown when the facility
  may not be open.
• May also deter development of downtown facilities
  b/c full parking lots, and street congestion.

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The Glue Principles for Downtown Development
2. Principle to stimulating other development
is to ensure the facility is part of an
integrated, coherent, master plan for downtown
redevelopment.
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Stimulation of Other Development
Old VisionFocus was only on bringing the sports
facility in. New VisionFocus on redevelopment
of downtown which is a more substantial
justification.
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Types of Development

• Proximate Development facility helps jumpstart
  economic development in a particular area.
• Complementary Development
• New facilities constructed as part of a
  jurisdiction's commitment to hosting a
  mega-event.
• Upgrading and/or initiation of businesses as a
  result of the demand for their services that is
  directly created by a sport facility or event
  (restaurants, bars, souvenir stores, etc.).
• General Development The snapshot of a citys
  skyline during an event.

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Psychic Income
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Psychic Income

• The emotional and psychological benefit residents
  perceive they receive
• Residents dont necessarily attend sporting
  events.
• They are not involved in the organization of a
  sporting event.

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Psychic Income
People relate to their team w/out ever
attending a game. They talk about their team
just from obtaining information through the
media.
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Sport Fans

• A sport team is an investment in the emotional
  infrastructure of a community.
• Sports are seen as being similar to art
  entertainment. Museums, performing art centers
  and visual art organizations all receive public
  subsidywhy not sports?

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Sport Teams and Events Provide

• Memories
• Focus for building community consciousness
• Social Bonding
• Help blur color lines, economic lines, and
  gender lines.
• Generate civic energy
• Establishes pride in people (failure when
  losing).
• Contributes to building a communitys Sense of
  Place.

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Sports Subsidy - Psychic Income
Sports are seen as being similar to art
entertainment. Museums, performing art centers
and visual art organizations all receive public
subsidywhy not sports?
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Measuring Psychic Income
How much should team and/or facilities be
subsidized by public funds to compensate for the
positive experiences they offer to residents in
a host community who otherwise pay nothing for
that experience?