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%.