For all the talk by professional sports teams about drawing more fans to new ballparks, keeping their facilities "relevant," and "improving the fan experience," a comprehensive analysis by 10 Investigates reveals most new revenue from taxpayer-funded stadium construction projects comes not from increased attendance, but from increased ticket costs.
That means taxpayers are spending money on new sports facilities so team owners – often billionaires – can charge them more than ever before to attend the games.
And even though taxpayers often foot the majority of stadium construction costs, the private teams and leagues keep most of the revenues, while often reducing the number of seats available. Fewer fans at a game can mean fewer jobs at the stadium as well as less economic impact in the areas surrounding the stadium.
In January,
10 Investigates showed how lawmakers keep opening state coffers wider and wider for professional sports teams and leagues, even though state economists suggest there’s little return on investment. Other findings included how pro teams often build or renovate their stadiums anyway,
even when they don’t get “necessary” tax dollars, and how campaign contributions
often go hand-in-hand with assistance from powerful politicians.
ALSO SEE: Gov. Rick Scott mum – again – on stadium spending
Even the applications from four pro organizations currently looking for tens of millions of dollars in tax money indicate questionable return on investment to Floridians.
The Miami Dolphins, seeking $90 million from state taxpayers over the next 30 years, acknowledge they draw fans from all over the world to major events like the Super Bowl, BCS Championship, and Orange Bowl. But they’re seeking the money as part of a renovation project that would remove 10,000 seats.
Their application indicates the team would help make up for the lower attendance with a 10% hike in ticket prices, plus “significant price increases in areas with new clubs.”
The application for Daytona International Speedway (DIS) suggested similar price hikes. Although the track didn’t specify exactly what it would be using tax dollars for, it was also seeking $90 million over 30 years toward its “Daytona Rising” renovation project that “reimagined the American Icon.” The project dropped the track’s capacity from 147,000 to 101,000.
But even with fewer fans, the track told the state it will generate more revenue. Those “increases” came largely from inflation and an estimated hike of nearly 10% in ticket prices from 2015 to 2016.
Florida’s
controversial new stadium subsidy law requires applicants to prove return on investment to taxpayers, but specific exemptions were written in for the Dolphins and Daytona International Speedway, neither of which needs to show any increase in tax revenue.
READ: Daytona's application
READ: City of Orlando/MLS application
READ: City of Jacksonville/Jaguars' application
READ: Dolphins' application
The Tampa Bay Rays currently benefit from $2 million per year in state funds that help pay for Tropicana Field, but the team could apply for another $3 million per year if it were to build a new Florida stadium.
The team could potentially benefit from moving closer to the population centers of Hillsborough County, and Rays President Brian Auld
recently told The Economist Club of Tampa the move – plus the presumable buzz of a new park - might eventually mean 5,000 more fans per night, which would mean $15-20 million in new revenue. But he didn’t talk about the even greater gain to be had by raising ticket, concession, and parking prices on the 17,000 fans already attending games.
When the Miami Marlins opened their new taxpayer-subsidized ballpark in 2012, average ticket prices climbed 56%. They have receded a bit with demand, but still sit 52% higher than they were in 2011, the team’s final year at its old home, Sun Life Stadium, even though 2014 attendance was only up 13% from 2011.
According to the Team Marketing Report
Fan Cost Index, other costs associated with attending a Marlins game climbed with the new ballpark too. The price of beer, hot dogs, parking, programs, and ballcaps all climbed significantly after Marlins Park opened. Most of the new revenues were retained by the team, helping its overall value,
as estimated by Forbes, nearly double since 2011 to $650 million.
The Fan Cost Index lists the Rays as baseball’s third-most affordable experience, largely due to the availability of free parking and low-price tickets – two benefits Rays fans may not get to enjoy as much at a new ballpark.
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