should use double spacing, 12-point Times New Roman font, and one-inch margins. 3-4 pages with references I have included a example paper on what it should look like.
The justification for financing many sport facilities is often based on arguments made about the economic benefits that the development will have on the local community. During a time of global recession when there is a proven logic for governments to spend their way out of financial trouble, the expenditure on sports facilities and supporting infrastructure can be considered to be a financial lifeline contributing to bringing the economy out of recession rather than an expensive luxury.
Given the claimed benefits of investing in sport facilities, find an economic impact analysis or report for a sport facility (one not provided in Module Resources, but these can be used as examples of what you should look for), and analyze what is meant by economic impact and what benefits it brings in terms of construction, employment, supply chains, local income, and new events? In addition, explain how to ensure a transparent audit trail of how the economic impact has been derived and what its key drivers are.
1 Economic Impact Analysis
Economic Impact Analysis
Zachary MacMath
Southern New Hampshire University
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2 Economic Impact Analysis
To best analyze the economic impact of a sport facility, using an economic impact
analysis or report on the facility helps to show the economic benefits a sports facility can have on
a particular area. “In the context of sport, economic impact is defined as the net economic change
in a host community that results from spending attributed to a sport event or facility (Turco &
Kelsey, 1992).” (Crompton, 1995) There are five key areas to analyze when considering the
economic impact, construction, employment, supply chain, local income, and events. In order to
get the best use of an economic analysis, it should be done by an independent entity, separate
from the public space or private owner, and have full access to all available data so it can
produce the most realistic numbers to present the overall economic impact of such facility.
To best illustrate an economic impact analysis, a report on the Hays sports complex in
Hays, Kansas. “The proposed complex features eight baseball/softball fields, four football fields
and four soccer fields. In addition to the fields, the sports complex would offer areas to house a
maintenance building, shared concessions, a picnic area, playground facilities, warm-up areas
and ample parking.” ((Brinker & Walker, 2008) This multi-sport complex is typical in suburban
areas and their funding is typically contingent on an economic impact analysis. In this report,
they focus on the potential of the sport facility to host youth sport tournaments that will generate
revenue for the facility and surrounding area. Besides direct revenue brought in from the new
facility, it could also lead to new businesses being started, “Other economic considerations
include the potential for the increased notoriety resulting from the tournaments to draw new
businesses and residents to Hays.” (Brinker & Walker, 2008)
Construction costs take up a vast majority of the funding for a new sports facility, but
also provide hundreds, if not thousands of jobs while the facility is being built. “One of the noted
benefits associated with the construction of a new sport facility is the creation of jobs. Initially,
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3 Economic Impact Analysis
there will be many construction jobs created. Once the construction is complete, individuals will
be needed to run the facility, from ticket collectors to concession stand workers to maintenance
personnel.” (Robertson) Employing locals is an added benefit that economic facility analysis can
gauge when deciding if the construction of a facility will in fact boost the surrounding area.
The impact on the surrounding housing market seems to be a big takeaway in many sport
facilities reports. This is done to help convince locals that their housing values could also benefit
from the constructing of a new facility or stadium. By adding value to the surrounding
neighborhoods, taxpayers feel better about approving a new facility that also boost their home
values.
Having a transparent audit is of the utmost importance to any economic impact analysis.
Using inflated or deflated numbers in a review can be very detrimental for the party’s involved.
“Rather, they incorporate assumptions and adopt methods that facilitate their use as advocacy
documents intended to provide a public subsidy for a sports project with a convincing aura of
economic legitimacy.” (Crompton, 1995) Crompton goes on to say, “Each situation should be
analyzed and assessed independently.” (Crompton, 1995) When numbers are skewed or inflated,
or from different sources, it doesn’t truly represent the study at hand.
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4 Economic Impact Analysis
Bibliography
Crompton, J. L. (1995). Economic Impact Analysis of Sports Facilities and Events: Eleven
Sources of Misapplication. Journal of Sport Management, 9(1), 14-35.
doi:10.1123/jsm.9.1.14
Robertson, R. (n.d.). United States Sports Academy America's Sports University®. Retrieved
July 05, 2020, from http://thesportdigest.com/archive/article/economic-impact-sports-
facilities
Wayne, L. (1996, July 27). Picking Up the Tab For Fields of Dreams;Taxpayers Build Stadiums;
Owners Cash in. Retrieved July 02, 2020, from
https://www.nytimes.com/1996/07/27/business/picking-up-the-tab-for-fields-of-dreams-
taxpayers-build-stadiums-owners-cash-in.html
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