The Benefits of having a Sports Team in Your Region

Based upon information from the post game
for the year 2012

• Dallas Cowboys:
  • Est Value: $2.3 billion
  • Est Operating income: ($250.7 million)
• New England Patriots:
• Est Value:$1.8 billion
• ($139.2 million)
• Washington Redskins:
• Est Value:$1.7 billion
• Est Operating income: ($104.3 million)
• New York Giants:
• Est Value:$1.55 billion
• Est Operating income: ($64.4 million)
• Houston Texans:
• Est Value: $1.45 billion
• Est Operating income: ($81.5 million)
• New York Jets:
• Est Value: $1.38 billion
• Est Operating income:($52.8 million)
• Philadelphia Eagles:
• Est Value: $1.314 billion
• Est Operating income: ($47.8 million)
• Chicago Bears:
• Est Value: $1.252 billion
• Est Operating income: ($63.2 million)
• Baltimore Ravens:
• Est Value: $1.227 billion
• Est Operating income:($48.3 million)
• San Francisco 49ers:
• Est Value: $1.224 billion
• Est Operating income:($10.2 million)
• Indianapolis Colts:
• Est Value: $1.2 billion
• Est Operating income:($65 million)
• Green Bay Packers:
• Est Value: $1.183 billion
• Est Operating income:($54.3 million)
• Denver Broncos:
• Est Value: $1.161 billion
• Est Operating income:($31.7 million)
• Pittsburgh Steelers:
• Est Value: $1.118 billion
• Est Operating income:($28.3 million)
• Seattle Seahawks:
• Est Value: $1.081 billion
• Est Operating income:($28.2 million)
• Miami Dolphins:
• Est Value: $1.074 billion
• Est Operating income:($24.8 million)
• Tampa Bay Buccaneers:
• Est Value: $1.067 billion
• Est Operating income:($2.2 million)
• Carolina Panthers:
• Est Value: $1.057 billion
• Est Operating income:($28.9 million)
• Tennessee Titans:
• Est Value: $1.055 billion
• Est Operating income:($40 million)
• Kansas City Chiefs:
• Est Value: $1.009 billion
• Est Operating income:($15 million)
• Minnesota Vikings:
• Est Value: $1.007 billion
• Est Operating income:($28 million)
• Cleveland Browns:
• Est Value: $1.005 billion
• Est Operating income:($17.1 million)
• New Orleans Saints:
• Est Value: $1.004 billion
• Est Operating income:($22.2 million)
• Arizona Cardinals:
• Est Value: $961 million
• Est Operating income:($9.7 million)
• San Diego Chargers:
• Est Value: $949 million
• Est Operating income:($30.4 million)
• Atlanta Falcons:
• Est Value: $933 million
• Est Operating income:($18.5 million)
• Cincinnati Bengals:
• Est Value: $924 million
• Est Operating income:($37.3 million)
• Detroit Lions:
• Est Value: $900 million
• Est Operating income:(-$3.5 million)
• St. Louis Rams:
• Est Value: $875 million
• Est Operating income:($21.1 million)
• Buffalo Bills:
• Est Value: $870 million
• Est Operating income:($12.6 million)
• Jacksonville Jaguars:
• Est Value: $840 million
• Est Operating income:($15.5 million)
• Oakland Raiders:
• Est Value: $825 million
• Est Operating income:($19.1 million)

Neighborhoods around National Football League stadiums
tend to have homes that are more expensive both in sales and rental value

According to Trulia "Of the 31 neighborhoods around the nation's pro football stadiums, nearly two thirds have higher housing values, on average, than houses in non-stadium neighborhoods." A study that was conducted by RENTCafe.com reported rental premiums from 9% to as high as what is near the Lucas Oil Stadium which is where the Indianapolis Colts play 70% greater than the areas norms. These are factors that I had not considered for I remember the Veteran Stadium where the Eagles play being in an industrial zone. ( I assume the new stadium: Stadium #11 Lincoln Financial Field still is). If there were or are any home near the stadium, despite the convenience of being able to walk to a sporting event the traffic coming and going is horrendous. I am looking at the benefits and the effects that having major attractions and sports team in your region. To justify the cost of building a new stadium to attract a team of retain a team in or near your city the companies that are hired by the teams report great tangible economic returns to the area. The opponents claim that they are playing a little loose with the numbers.

Baade and Dye (1988, p. 37) acknowledge that measurable economic benefits to area residents are not large enough to justify stadium subsidies and the debate must turn to immeasurable intangible benefits like fan identification and civic pride. Noll and Zimbalist (1997, p. 58) agree that these immeasurable benefits may be important: whether the value of the external benefits of a major league team to consumers really does exceed stadium subsidies is uncertain, but by no means implausible.

Why the differnce of opinion between the researches that those who what a team such as the team themselves attempting to justify the community paying for or subsidizing the cost of the new stadium? The critics claim that the proponets studies do not consider subistution. The jobs that are created to build a new stadium is using monies that could be used elsewhere providing the same number of jobs. The monies that a person spends to attend a game is from a persons entertainment budget, which according to opponents would be spent on other forms of entertainments.

I ask you would a person who is paying for parking, refreshments and ticket fees to watch a sporting event attend an opera if readily available? Some would. How many?

Consider the Following

Tangible benefits:

There is direct and indirect employment. Much labor is needed to build and maintain the stadium thus wages, taxes and jobs are provided and acquired. Business operate the concession stands. Companies design, manufacture and distribute Souvenirs. Buses, trains, trolleys, high speed line, bridge tolls, restuarants, sports bars, hotels and traverns provide direct measuable jobs. A team employs has 53 players plus the five extra for a practice squad. There are 32 teams in the NFL. The math yields 1,696 players in the NFL teams some of which are very well paid. Plus the NFL itself reports that they employ 1858 employees.

The Benefits that are Not Tangible:

How much does a psychologist costs per hour? How long is the average game? Being a spectator is a great release a temporary escape from the daily stress. Identifying with team brings cathartic healing. Have you heard somebody say their team was winning? Few of us have actually had lunch with the owners and yet the person across the table is boasting about their team. Identifying with a team gives a person a sense of belonging, deceases loneliness, a greater sense of being empowered.

Major features for a city adds positive image: Teams: football, baseball, hockey. Culture: Opera, Theatre, Orchestra, Sports gives youths an activity perhaps a career to aspire to perhaps sport scholarship to reach for. Better for youths to emulate sport heroes than copy Bonnie and Clydes. This helps lower the crime rate and increases productivity. It brings a safe topic to talk about in a public setting. Gives a reason to invite the thong to watch Monday night football. Reducing antisocial behavior. The feel good factor is reflected in the social conversations at the water cooler the next day. Sport fans take their sports seriously according to Psychological Science Org if the team wins or loses it greatly effects how a person eats.

Those that identify with, and even those who do not, see that the physical prowess of sport figures are held in high esteem. Consciously and subconsciously stimulating emulation. Physical fitness means better health, translates into less sickness smarter brains (blood flowing to the brain see my other page) thus less days missing work. Less work missed there is a greater productivity. Professional sports encourages sports in schools. Team sports teaches both competition and team work while a student has the chance of learning good sportsmanship.

What is included in the decision of a major company to locate in an area?

Sports, theater music orchestra arts are enticements for a company to locate within the area. I must grant you that the decision process for companies coming to this area might not have the sports team at the top of the list as a decisive factor perhaps not second or third. A safe environment, educated ready willing and able workforce, access to the raw materials, and having cost effective transportation to bring their goods or and services to market would be crucial. Next upon the list would be financial incentives. But between two locations if everything was equal where would you place your company?

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David Cohen Office 856.974.1981, Office 856.227.1950