The Subsidization of Professional Sports – Essay Example
The Subsidization of Professional Sports The subsidization of Professional Sports Introduction Professional sport is gamesmanship in which athletes obtain payments for their performance. Subsidies are a sum of money granted by the government or a public body to support an organization’s undertakings held in the public interest. A cost is an amount paid or required for a purchase or attainment of goals while a benefit is an advantage or profit gained from something.
Costs and Benefits
In order to draw and keep hold of professional teams, colossal sums are utilized to establish stadiums .The Baseball Halls of Fame and The Suffolk Sports Hall of Fame are famous sports facilities. This paper analyzes and discusses the cost and benefit of publicly financing a sports stadium. Further, it seeks to identify the relationship between economic activities and the resources available in a society.
One cost of publicly financing a sports stadium is the opportunity cost of public dollars that arise. When government sets to build a sports stadium, other governments projects are put on hold. The delay or substitution of other projects like building education centers is an economic cost (Rosner & Shrosphire, 2012).
Many benefits result from financing sports stadiums with the use of public funds. There is the creation of jobs and increased income. Jobs will be created in the construction of stadiums and operation of the businesses. Entertainment sports will witness a boost in clientele due to increased attendance of the community. Indeed, the development around the stadium is promoted.
Based on the above analysis, the building of sports stadium is beneficial to the community. Social problems like poverty, discrimination, and crime are eliminated. When jobs are created, incomes are raised, and poverty levels are eliminated. Time spent on plotting for crime is spent in watching games in the stadiums. Further, a country that has a big number of poor people becomes economically unattractive to foreign investors.
Uneven income distributions damage social structures, which result to, economic problems. The overdependence on economically stable people brings the economic growth of a country down. Government has a role to reduce crime by ensuring sustainable development to her citizens. Government should also eliminate poverty by providing facilities that cater for the less fortunate.
There is a great co-relation between economic activities and the resources available in the society. Resources facilitate execution of economic activities. For instance, the availability of the human resource to play soccer results in professional soccer. This soccer brings the country revenue (Dart, 2012). Metropolitan regions develop because of this. Such areas include Charlotte, North Carolina that hosts NBA and NFL. It should be known that, in the earlier periods, the locale was not as big.
Some economists argue that sport creates entertainment dollars, not necessarily dollars meaning they do not characterize any supplementary economic activity (Coates and Humphrey, 2008). However, this paper advocates for the view that professional sports provide many benefits and can never harm any local economies.
In conclusion, sports are an essential part of society. If planned carefully, the economy of a country can be greatly improved. Professional sports should be subsidized so that many professional players are born. In so doing, there will be an increase in revenue of a country thus increasing economic power.
Dart, A. (2012): An Examination of Supporting Event for Economic Impact Studies
Coates, D. & Humphreys, B. (2008). Do Economists Reach a conclusion on subsidies for sports
Franchises. Econ Journal Watch 5, 3 294-315
Rosner, S. & Shrosphire, K. (2010). The Business of Sports. New York, NY: Jones and Barlett