1 / 12

Minnesota Stadiums

Minnesota Stadiums. To build or not to build? That is the question. What is motivating politicians’ interest in offering taxpayer support?. Team performance—how does one measure the impact this has on the Twin Cities?

dominic
Download Presentation

Minnesota Stadiums

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Minnesota Stadiums To build or not to build? That is the question.

  2. What is motivating politicians’ interest in offering taxpayer support? • Team performance—how does one measure the impact this has on the Twin Cities? • Teams’ desire to leave Metrodome for greater revenue (http://sports.espn.go.com/mlb/attendance) • Prisoner’s dilemma—what if another city will build stadium…so we had better build it or we’ll lose out.

  3. The Prisoner's Dilemma: A Fable In the mid-1920's, the Nebraska State Police achieved what may still be their finest moment. After a 400-mile car chase over dirt roads and corn fields, they finally caught up with the notorious bank robbers Bonnie and Clyde. The two criminals were brought back to the police station in Omaha for further interrogation. Bonnie and Clyde were questioned in separate rooms, and each was offered the same deal by the police. The deal went as follows (since both are the same, we need only describe the version presented to Bonnie): ``Bonnie, here's the offer that we are making to both you and Clyde. If you both hold out on us, and don't confess to bank robbery, then we admit that we don't have enough proof to convict you. However, we will be be able to jail you both for one year, for reckless driving and endangerment of corn. If you turn state's witness and help us convict Clyde (assuming he doesn't confess), then you will go free, and Clyde will get twenty years in prison. On the other hand, if you don't confess and Clyde does, then he will go free and you will get twenty years.'' ``What happens if both Clyde and I confess?'' asked Bonnie. ``Then you both get ten years,'' said the interrogator. Bonnie, who had been a math major at Cal Tech before turning to crime, reasoned this way: ``Suppose Clyde intends to confess. Then if I don't confess, I'll get twenty years, but if I do confess, I'll only get ten years. On the other hand, suppose Clyde intends to hold out on the cops. Then if I don't confess, I'll go to jail for a year, but if I do confess, I'll go free. So no matter what Clyde intends to do, I am better off confessing than holding out. So I'd better confess.'' Naturally, Clyde employed the very same reasoning. Both criminals confessed, and both went to jail for ten years.1 The police, of course, were triumphant, since the criminals would have been free in a year had both remained silent. 1 Actually, they didn't go to jail. When they were in court, and heard that they had both turned state's witness, they strangled each other. But that's another story.

  4. The Prisoner’s Dilemma

  5. If past history is any indication, how much of the new stadiums will the Twins or Vikings pay? • http://www.vikings.com/Stadium/StudyBillFactSheet.htm

  6. Why the recent rush on building new stadiums? (p.147) • Age of old stadiums • Lease agreements expiring • Small market teams with financial pressures • Success of other new stadiums

  7. Why are NFL teams, among others, so hot on getting luxury boxes? (149) • Rentals are not part of ticket revenue and not subject to 60-40 home-away revenue sharing

  8. What spill-over effects do you think might accrue to the Twin-Cities? What are the counter-arguments against these? (151) • Economic value generated during construction • Multiplier effects of income of employed workers doing construction • Income & employment generated from ongoing operations of a stadium

  9. How many studies have shown clear economic gains from new stadiums? (154) zero

  10. What are the “intangible” and “consumption” benefits associated with keeping the teams in the Twin Cities? (155) • Would Minneapolis be just like Omaha if it didn’t have major league teams? • How can you measure consumption benefits?

  11. Why are pro sports such a big deal with state & local politics? (159) • Greater interest & visibility of sports • Owners are wealthy & influential • Stadium & team deals are “trophy” wins or losses for those politicians who get or don’t get them.

  12. If MN teams take the issue to a referendum, what should their strategy be with regard to expenses? (162)

More Related