Spending On The Construction Of New Sports Facilities

Spending on the construction of new sports facilities grew at a staggering rate post 2007. A total of 13.4 billion is being spent on around 81 arenas and other major as well as minor sport facilities in and around the U.S. at least through 2010. The association of exceedingly high cost has put the subject of public financing of new stadiums and playing arenas under exceptional examination. The development of another stadium or playing arena is a costly job which these days can often surpass a few hundred million dollars. In the pre-1990 s period the vast majority of the sports facilities were for the most part supported through public financing, however with the progression of time as the financing prerequisites for developing new sports facilities grew, so did the financing techniques. Public financing for major sports arenas is mainly done by heavily subsidizing the construction process of these stadiums. The main argument of local governments favoring the use of tax payers money for construction of sports facilities is that these facilities will better the entire area and city as a whole. The main sources of public financing for building new sports facilities include; sales taxes, general obligation bonds, beneficiary taxes, tax increment bonds, revenue bonds and proximity taxes. Given the complicated and often conflicting arguments regarding stadium financing, the only advisable course of action for policymakers is to make the debate more open and honest. IfShow MoreRelatedThe Effects of Sports Teams and Stadiums on Cities Essay1501 Words   |  7 PagesThe Effects of Sports Teams and Stadiums on Cities What if a tax increase came to a city because of a sports team, would it be alright? Of course not, right? Well, consider being told as a tax payer and being told it will help the economy of city to build a stadium. 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