Sport and Econimics

Councilman Scott Sherman has proposed a 166 acre Qualcomm Stadium site, that could generate up to $1.8 billion.  This would allow the city to build this site, and would allow them to avoid a tax increase for a new stadium.  This site would include a new stadium along with thousands of apartments and condos, millions of square feet of office space, a 300-room hotel, and a 20 acre riverfront park that is similar to the River Walk in San Antonio.  Sherman calls this project the River Park Stadium. Sherman stated that if this project is done correctly, it could be catalyze for economic development.  In a best case scenario, Sherman has projected the funds that would come from the Chargers and other sources as listed below:

• $965 million from the Chargers, NFL, naming rights, personal seat licenses, investors, and sponsorships
• $594 million from leases for private development and land sales.
• $266.2 million from county property taxes generated from site development and bonds repaid from the city of San Diego  

For more information go to New Chargers Stadium Site

This article relates directly to what we learned in class on March 19th because learned about sport and economics, specifically about public assistance for team owners building a new stadium.

Public Assistance for team owners:

• Use of public funds to construct and maintain facilities 
• Income deduction on tax returns
• Tax breaks and rebates
• Control of revenue in public facilities  

If the San Diego Chargers and the city of San Diego decided to use this plan, they would be able to eliminate some of the public assistance to build the new stadium.  In class on March 19th we learned that many residents do not want a tax increase to build a new stadium.  I think the proposal for River Park Stadium is a great idea.  With adding businesses, apartments, and other recreations, the price to build the stadium would be completely covered, and the economy in the surrounding area would also increase.  This is great for the city because it will create more jobs, and will increase the number of employees and tourists coming into the city.  This stadium will also be extremely beneficial to all the new businesses that are going to be apart of the site.  In class on March 19th we also learned about the arguments for building new stadiums which include:

• A stadium and team create jobs
• Stadium construction infuses money into local economy
• Team will attract other businesses 
• Team will attract media attention that boosts tourism, product sales, and economic development
• Team will create positive psychic and social benefits 

I think the River Park Stadium plan should be accepted and followed through with the support of the arguments listed above.  With the NFL wanting to add a team to Los Angeles, the Chargers could potentially move there.  There is another proposal for a stadium to be built in Los Angeles that would be home to current Oakland Raiders, and current San Diego Chargers.  The city of San Diego and all the fans of the Chargers would not want to see this happen.  No city wants to see their team relocate, so I think the River Park Stadium proposal can keep this from happening.  One of major upsides of this plan is that it will be able to avoid a tax increase to build.  This is extremely important to residents of San Diego, and I think they will be onboard with this plan because of that.  The plan to build this site will be a huge economic boost to the city.  I think the San Diego Chargers, and the city of San Diego should follow through with this plan, and if it is done correctly, I think it will spark a huge trend for how new stadiums are built in the future.