Economicss Of Veterans Stadium Essay, Research Paper

Veterans Stadium was opened in 1971 and is the place of both the Philadelphia Phillies of the National League and the Philadelphia Eagles of the National Football Conference. It is located on 74 estates in South Philadelphia and is located near the First Union Complex. First Union Complex is home to the Circulars of the National Hockey League and the 76 & # 8217 ; s of the National Basketball Association among other Philadelphia athleticss squads. Before Veterans Stadium was built the Phillies played in Shibe Park besides known as Connie Mack Stadium ( Website # 2 ) . In 1994 the Philadelphia Phillies took over direction of the bowl and conducted many much needed fix. Veterans Stadium cost about $ 50 million to construct. At the clip that it was built it was considered one of the most expensive ballparks in baseball history. When Veterans Stadium was built the Phillies had strong community support leting the bowl to be financed by the metropolis with no major ailments by the taxpayers ( Website # 2 ) .

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

Recently the metropolis of Philadelphia has been contemplating a proposal to construct a downtown baseball bowl for the Phillies and a South Philadelphia bowl for the Eagles. The two bowls would be about $ 1.29 billion combined. It is estimated that the building of merely the baseball bowl will be $ 331 million. This is non including land acquisition, destruction and other costs related to prepping the site. The metropolis of Philadelphia has started roll uping a 2 per centum revenue enhancement on short-run auto lease, which is projected to convey in $ 3 million per twelvemonth. This money is being set aside until the metropolis decides on the proposal. If the metropolis decides non to construct the bowls the money can be used to mend Veterans Stadium. The metropolis is besides negociating with the squads to put a

Page 2

surcharge on tickets and a personal place revenue enhancement to assist cover the costs. The province Legislature has set aside $ 170 million to travel toward the two bowls. The Eagles planned on paying for $ 300 million of the bowl. The deadline for the proposal is November 30th of this twelvemonth. If the proposal is accepted the Phillies will travel into their new bowl on April 2004 and the Eagles will travel into their bowl on August 2003. ( Website # 1 ) .

Due to the deteriorating status of Veterans Stadium the metropolis of Philadelphia has been able to acquire many people to back up the thought of new bowls. Some of the defects of Veterans Stadium are broken lifts, the field is have oning out, and the ceilings need to be repaired. If the bowl proposal deadline is non met the metropolis will hold to pass over $ 80 million in fixs on Veterans Stadium over the following two old ages. Many people believe that it doesn & # 8217 ; Ts make sense to pass the money on fixs when a new bowl would be so much more profitable ( Website # 3 ) .

Some of the people that oppose the program are the occupants and concern proprietors of Chinatown. This is the proposed sight of the new ballpark. They do non desire the bowl in

their vicinity and believe that the money would be better spent on schools and other public demands. Developer Bart Blastein, who is a former member of the commission that recommended the bowl sites to the city manager, bought a warehouse across from the Eagles proposed bowl site. It has been talked about as a possible bowl site. Some people believe that this sight would be a better location for the new ballpark due to the support of the

Page 3

community and the fact that it would be much cheaper to construct it at that place ( Lexis-Nexus ) .

Presently the mean ticket monetary value at Veterans Stadium is $ 13.60, which did non alteration from the old season. The fan cost index is $ 126.85 which is somewhat up from the 1999 season ( Website # 4 ) . The value of the squad in 1999 was $ 150 million harmonizing to Forbes magazine, with entire grosss of $ 68.1 million and an operating net income of $ 3 million. In 1998 the squad was deserving $ 145 million, and they had entire grosss of $ 66 million, and an operating net income of $ 4.5 million. In 1997 the squad was deserving $ 131 million, they had entire grosss of $ 57.1 million, and an operating loss of $ 2.5 million. Venue grosss for the 1997 season were $ 6.8 million, media grosss were $ 26.6 million, and the staying $ 23.7 million of the entire grosss were from other beginnings ( Ozanian 100 ) .

Philadelphia is a big metropolis with over $ 4.9 million possible Philly fans populating within its bounds. However they are a squad combat to remain at the mid-market degree. Many of the large-market squads of baseball today are pulling from a well lower population. Cleveland for illustration has a population of $ 2.9 million yet they are graded second of the 30 squads in entire grosss. Atlanta, with a population of $ 3.8 million has the 4th highest operating net income of $ 16.4 million and 3rd highest entire grosss of $ 142.7 million. Both the squads mentioned above moved into new bowls in recent old ages doing a drastic addition in grosss for the squads. This would be a great tool to convert the metropolis of Philadelphia to construct the Phillies a new bowl. With the excess money

Page 4

collected the squad could afford to field a better squad increasing the involvement of the community.

Page 5

Plants Cited

1.Rovell, Darn, & # 8220 ; Eagles Blitz Mayor Over New Stadium, & # 8221 ; October 6, 2000.

Internet: ESPN: hypertext transfer protocol: //espn.go.com/nfl/s/2000/1005/802148.html

2.Associated Press, & # 8220 ; Veterans Stadium, & # 8221 ; March 2000.

Internet: Ballparks: hypertext transfer protocol: //www.ballparks.com/baseball.national/vetera.htm

3.Associated Press, & # 8220 ; Ballpark News, & # 8221 ; October 6, 2000. Internet: Phillies: hypertext transfer protocol: //wwww.phillies.com/newb_news.html

4.Associated Press, & # 8220 ; Baseball Ticket Prices, & # 8221 ; October 8, 2000. Internet: CNN and Sports Illustrated: hypertext transfer protocol: //www.sportsillustrated.cnn.com/baseball

5.Ozanian, Michael K. & # 8220 ; Too Much to Lose. & # 8221 ; Forbes Magazine. 12 June 2000: 94-100.

6.Lexis-Nexus ( Not certain how to mention this ) .