Economics Writing Assignment
Stadium Financing Public Private Mix
You have been asked by a partner in your financial firm to come up with a plan to build public support for a newly proposed arena and / or stadium. The partner wants you to especially focus on the financial side of the issue because that is where the most “push back” is coming from. (You can choose a stadium OR an arena.)
The partner wants you to address the following points specifically:
- How should the stadium / arena be financed?
- What is your justification?
- Why did you choose this option over other options?
- How much should public pay, if any? (use percentage and a whole number)
- What method(s) should be used?
- How much should private owner / operator pay, if any? (use percentage and a whole number)
- What method(s) should be used?
- How should stadium / arena revenues be distributed?
- Who will you sell naming rights to?
- Why?
- Who should get revenue from naming rights?
- How long and for how much?
- Will there be any “sub-naming” rights?
- Of What?
- To Who?
- For how much and how long?
- Who keeps revenue?
He also says that the state is considering a jock tax on players who play at the facility.
- Calculate the jock tax on an NBA player coming into play a game who is earning $5M per season and a local tax rate of 7%.
Please put your responses in memo format. A sample format is included below.
This assignment is due on Friday, August 12th by 11:59 PM EST
# # #
Memo
To: City Council
From:
CC: J.C. Harmon
Date: 8/13/2016
Re: Stadium Financing Mix Proposal
Category: Completed Assignments
