How do large commercial construction projects like stadiums actually make money?

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How do large commercial construction projects like stadiums actually make money?

In: Economics

4 Answers

Anonymous 0 Comments

Many American stadiums are built at great cost to the taxpayers. On top of that, the owners of the stadiums are usually able to negotiate extremely low taxes for their shiny buildings. If they’re met with resistance, they appeal to the loyalty of sports fans and threaten to move cities if they don’t get their way. Considering most franchise owners are billionaires, and can easily absorb the cost of stadiums and their overhead costs, it’s no wonder that more attention is finally being paid to this issue.

Anonymous 0 Comments

Football ticket prices can be more than $100 per person. A stadium can have 65,000 seats or more, so that would be $6.5 million potentially every game not counting concessions, broadcasting rights, memorabilia sales… it all adds up.

Of course not every stadium is completely filled every game and not all of the ticket price is directed toward the entity that built the stadium. But you get the idea that it is big business and there is a lot of money at play.

Anonymous 0 Comments

from people attending events after its built, and from the city its built in paying for a lot of it with taxpayer money

Anonymous 0 Comments

They don’t have to. Cities bid on them because they want the prestige of getting a popular sports team so they get a contract with the team for a few years. When the stadium loses it’s new stadium smell after a few years the teams whine and threaten to leave so the cities build them a new one.