FOOTNOTES
[1] In its Budget 2000 Project report on Tax Policy the Citizens Budget Commission presented a long-run tax reform program that includes elimination of the commercial rent tax. The Commission's Budget Policy Committee currently is addressing conflicts between proposals in the Mayor's Preliminary Financial Plan and CBC's basic policy objectives. This memo does not address the issue of how to finance any subsidy for a sports stadium. Calculations described in the memo assume any construction financing would be through municipal debt and would be a part of the City's overall capital budget.
[2] It is likely that the lost income to the local economy is greater due to a suburban relocation than to a relocation to another region. This is the case because a suburban relocation is likely to draw some current spending by fans living in the city to the suburbs. In contrast, a relocation to another region is likely, at least in the short-term, to be accompanied by a shift in spending by resident fans to some other recreational activity within the city.
[3] Luxury seating capacity and prices from Sean Brenner, editor, 1998 Inside the Ownership of Professional Sports Teams (IL: TMR Marketing Report, Inc., 1998), pp. 74-77.
[4] Ibid.
[5] Although there is evidence of larger short-term increases in attendance following construction of a new stadium, this increase is unlikely to persist in the long run. Moreover, such increases may not be directly related to the stadium, and instead to improved team performance or recruitment of new players.
[6] Ibid.
[7] Ibid.
[8] Parking revenue for 1997 reported by the New York City Parks Department and published in Steve Zipay, "New Stadium in Manhattan Comes with $1.1B Pricetag," Newsday, April 12, 1998.
[9] Parking revenue for 1996 from Independent Budget Office, Double Play: Financing of Stadiums for the Yankees and Mets (NY: Independent Budget Office, April 1998).
[10] KPMG Peat Marwick, Yankee Stadium Alternative Site Study: Financial Analysis and Economic Impact Study (NY: KPMG Peat Marwick, May 1996).
[11] Roger G. Noll and Andrew Zimbalist, "Economic Impact of Sports Teams and Facilities," Sports, Jobs & Taxes, Roger G. Noll and Andrew Zimbalist, eds. (Washington: The Brookings Institution, 1997), p. 75.
[12] Double Play: The Economics and Financing of Stadiums for the Yankees and Mets (NY: Independent Budget Office, April 1998).
[13] Independent Budget Office, Home Base for Mets and Yankees Fans (NY: Independent Budget Office, September 1998).
[14] These are unweighted means for the two teams. Data from Independent Budget Office, Home Base for Mets and Yankees Fans, op. cit.
[15] KPMG Peat Marwick, op. cit.
[16] Independent Budget Office, Double Play, op. cit., and KPMG Peat Marwick, op. cit.
[17] New York City Convention and Visitors Bureau (www.nycvisit.com), March 12, 1999.
[18] KPMG Peat Marwick, op. cit.
[19] The 1.3 multiplier is a composite multiplier based on those for each relevant economic sector identified by the Independent Budget Office. These multipliers were from the Bureau of Economic Analysis, U.S. Department of Commerce. For further discussion of relevant multipliers see John Crompton, "Economic Impact of Sports Facilities and Events: Eleven Sources of Misapplication," Journal of Sport Management, vol. 9 (IL: Human Kinetics Publishers, Inc., 1995), pp. 29-30.
[20] The $3.7 million is the average of the City's expenses for Yankee Stadium in 1996 and Shea Stadium for 1995 increased 10 percent to allow for a larger stadium and inflation. Data from Independent Budget Office, Double Play, op. cit.
[21] This section draws primarily on Sean Brenner, editor, 1998 Inside the Ownership of Professional Sports Teams (IL: Team Marketing Report, 1998); Kevin Green, Benjamin Klein and Brian Lebowitz, "Using Tax-Exempt Bonds to Finance Professional Sports Stadiums," Tax Notes (VA: Tax Analysts, March 30, 1998); and "Ballparks by Munsey & Suppes" (www.ballparks.com), April 15, 1999.
[22] The next most recent project was the building of the SkyDome for the Toronto Blue Jays in 1989. The facility cost 570 million in Canadian dollars, of which 63 percent was from public sources (the province of Ontario and the city of Toronto). However, the public financing was essentially an outright contribution; the facility is owned and operated by a consortium of private businesses, and there is no lease with a public entity. Given these circumstances, we have not included the Toronto experience in this analysis.
[23] One team is counted twice. The San Diego Padres both benefited from renovations completed in 1997 and, effective in 1998, are planning a new stadium.
[24] Of the two Padres' projects, we consider here only the new stadium. Cincinnati is excluded because there is no specific deal.
[25] Hamilton and Kahn, op. cit.
[26] Stephen J. Agostini et al., "Stickball in San Francisco," in Noll and Zimbalist, eds., op. cit., pp. 385-426.
[27] See Edward I. Sidlow and Beth M. Henschen, "Major League Baseball and Public Policy, or, Take Me Out to the Ballgame, Wherever the Game May Be," Policy Studies Review (Spring 1998), pp. 65-88; Ziona Austrian and Mark S. Rosentraub, "Cleveland's Gateway to the Future," Noll and Zimbalist, eds., op. cit., pp. 355-384.
[28] The number of attendees is the average number at trade shows occupying between 760,000 and 900,000 square feet. From Tradeshow Week Databook '96, op. cit. The percent of out-of-town attendees and per capita spending is the average of estimates for those attending consumer shows and trade shows. From KPMG Peat Marwick, op. cit. The average hotel room rate ($193) is from the New York City Convention and Visitors Bureau.