Managing Leisure, 2014 http://dx.doi.org/10.1080/13606719.2014.885712

Proximate development: an alternate justification for public investment in major sport facilities? John L. Crompton Department of Recreation, Park and Tourism Sciences, Texas A&M University, College Station, TX, USA

As skepticism has grown toward the purported economic impact of major sport facilities on a commu- nity, advocates have redirected their justification toward the proximate structural development they stimulate and the social capital emanating from their presence. Analyses in this paper are confined to returns on investment in sport facilities from proximate structural development. Advocates invari- ably claim such benefits will accrue, but frequently they do not. Based on a review of multiple cases, it is suggested that at the city level an acceptable return is dependent on there being a critical mass of complementary attractions, while at the regional level the requirement is a critical mass of businesses that “feed off” the sport facilities. In the context of mega events, the return may be in the form of environmental rehabilitation, a legacy of long-term usable facilities, or “fast-tracked” infra- structure improvements. In all contexts, success is dependent on the extent to which the sport pro- jects are part of a holistic plan. The challenge of stimulating proximate development is exacerbated by the private facility operators’ goal of capturing all discretionary spending by visitors to their facilities and minimizing visitor spending outside their facility.

Keywords: sport facilities, proximate development, urban rejuvenation, structural capital

INTRODUCTION The investment in facilities for teams in All public investments have opportunity the four major US professional sport costs which are the benefits that would be leagues (NFL, NBA, MLB and NHL) in the forthcoming if the public resources com- past two decades was approximately $37 mitted to a sport project were (i) redirected billion (in 2011 dollars) of which the public to other public services or (ii) retained by sector’s contribution was approximately the taxpayer. Conceptually, for an investment $20 billion (Howard & Crompton, 2014). It of public money to be justified, it must meet has been demonstrated that in most cases, Downloaded by [Texas A&M University Libraries] at 10:35 03 April 2014 the criterion of “highest and best use”. Advo- the direct net economic gains accruing to cates may like to think that government the taxpaying public from these major investment in sport projects will have a posi- sport facilities are small (Baade & Matheson, tive economic and/or social impact, but the 2000, 2001, 2004; Crompton, 1995, 2007; key question is whether more benefits Hudson, 2001; Noll & Zimbalist, 1997; would be generated from any number of Porter, 1999; Rosentraub, 1997). They fall other opportunities such as investment in a far short of the opportunity costs incurred local college, public schools, transportation and, thus, do not justify public investment infrastructure, health programs, or incen- in them. However, direct economic returns tives to attract other kinds of businesses to provide only part of the context because locate in the community. total community benefits also include # 2014 Taylor & Francis 2 Crompton

enhanced social capital and proximate struc- investment that determines the quality and tural economic development. Thus, analyses quantity of social capital (Rosentraub & Ijla, of a community’s return on its investment 2008). For example, where urban rejuvena- also should include consideration of these tion or redevelopment is an intended two outcomes. outcome of expenditure on facilities, its When Jacobs (1961) introduced the notion effectiveness is measured by the magnitude of “social capital” over half a century ago in of its contribution to the quality of life of her seminal work on the failure of American the people living there, i.e. social capital. cities, she conceptualized it as bringing Thus, an evaluation of the viability of sport people together so commerce, culture and facilities should consider both structural community would flourish. In more recent development and social capital. In different years, the concept was further developed in contexts, the outcomes will be differentially the context of communities by Putnam prioritized. However, given the scope and (1995, 2000), who argued that social net- magnitude of this topic area, the discussion works are not a natural given. Rather, they in this paper is limited to structural develop- have to be facilitated by cities through stra- ment. The objective is to analyze multiple tegic investments in structural development. cases to identify and describe the conditions Since in most sport projects, the direct which result in proximate structural devel- economic case is not viable, the viability opment occurring from investments in case has shifted to consideration of the sport facilities. public legacy from such investments. Legacy refers to the sustainable gains that THE CONCEPT OF PROXIMATE accrue to the people living in a jurisdiction DEVELOPMENT who paid for the facilities. It suggests that rather than the goal being to meet a short- In the USA, major sport facilities increasingly term end goal of direct economic impact, are justified as anchors for economic devel- new facilities should be viewed as a vehicle opment. Either because they are publicly for intentionally accomplishing specified owned, or because property taxes were social goals. Thus, an increasing number of waived or abated in negotiations with a decision-making bodies are using the poten- private developer, most major sport facilities tial of major sport facilities for facilitating in the USA do not directly generate tax reven- social capital as their justification for large ues for a city. However, they have become investments in such facilities. ubiquitous in the downtowns of US cities. When public sector funds are used to pay The intent is that they will serve as catalysts for capital development and/or operating which stimulate proximate retail, commer- costs of a sport facility, this can be con- cial and residential development. This con- Downloaded by [Texas A&M University Libraries] at 10:35 03 April 2014 sidered an investment if the tax dollars spent trasts with the situation in the UK where are substantially offset by either additional the modernization of stadia is reliant revenues emanating from proximate struc- upon commercial development and planning tural development it has stimulated or gain. social capital emanating from the existence While the building of major sport facilities of the facility. If these gains do not offset the affords cities an opportunity to steer devel- costs, then the public expenditures are opment to a desired location and to “jump merely a subsidy for the private partner. start” economic development there, some Proximate structural development and proportion of the new spending will be sub- social capital are interrelated. It is what stitutable expenditures. That is, if the happens as a result of the structural capital public amenities and private facilities were Proximate development 3

not built in the redevelopment site, either Notwithstanding these reservations, advo- they would have been constructed at cates argue that expenditures on these sport another location in the city, or the consumer facilities represent investments not subsi- expenditures made in them would have dies, because the proximate development occurred elsewhere in the city. Indeed, reju- will produce higher revenues for public juris- venation of a district inevitably redirects at dictions from income, sales and property least some investments to it that were pre- taxes that will be sufficient to repay the viously spent in other city outlets. Thus, it initial public investment in the sport facility. is the marginal economic impact reflecting The public sector intent is: the amount of new money entering the To create lively, convivial downtown spaces local economy that should be the criterion that promote a street-fair atmosphere as used to measure the economic success of a well as meet the needs of a button-down downtown rejuvenation project. business environment for office and commer- Major sport projects sometimes result in cial space. The intention is that both sets of the displacement of poorer people living in activities will generate the tax dollars the cities. Government investments of struc- needed to meet a city’s social responsibil- tural capital to upgrade neighborhoods are ities while simultaneously reducing the intended to strengthen a city’s tax base inventory of dilapidated properties leading through attracting wealthier residents to the to the movement of residences and targeted area, and the higher end retail businesses away from the center city. (Rosentraub, 2008, p. 60) stores that service them. There is a Machiavel- lian rationale related to image enhancement For the most part, this optimistic vision has that supports these kinds of actions. Sport in not been realized. A fairly typical scenario cities traditionally has been associated with was the catalyst case made to justify the the urban working classes. It has been city of Dallas contributing $125 million to suggested that this is “hardly the image that construct the American Airlines Arena for would be deemed to attract the ‘right sort of the NBA’s Dallas Maverick’s team. An econ- people’ to cities which already possess endur- omic impact study projected that the arena ingly strong working-class reputations” would stimulate an additional $412 million (White, 2001, p. 131). The increasing gentrifi- in private sector development in the proxi- cation of sport effectively removes the mate area (Deloitte & Touche, 1997). Seven working classes from the scene, replacing years after the study and five years after them with wealthier clientele. It is believed the facility opened, none of the projected this is likely to attract more affluent entities development had either materialized or from the business and tourism sectors been planned. This caused the city’s mayor which, in the eyes of some, contribute to to observe angrily: “They show all the Downloaded by [Texas A&M University Libraries] at 10:35 03 April 2014 upgrading and enhancing a city’s image. pretty watercolors of the private develop- Low income renters who typically are ment that they will build once the arena unskilled and unemployed workers, often opens and then nothing ever happens” (Cart- recent immigrants and single parents, with wright, 2004, p. 105). no ability to politically influence the In the relatively few cases where invest- process, are likely to be displaced as prop- ments of capital for major sport facilities erty values rise. What happens to them? Do have met expectations, it has occurred they move to other areas of the city, either because a threshold level of cumulat- migrate to other communities, or become ive attraction has been achieved or a cluster- homeless? The challenge of accommodating ing of supplier businesses has emerged. In their needs remains. the case of major facilities built to 4 Crompton

accommodate mega events, success has only for three hours a day, a few days a been dependent on them being integrated week, between May and September. At NFL into a holistic plan, rather than there being stadiums the problem is even more acute, a myopic focus on the event. These features since they only host 10–12 games a season. are discussed in the following sections. Even when the sport dates in stadiums are supplemented with occasional concerts, the attraction factor is too low to constitute a THE PRINCIPLE OF CUMULATIVE critical mass. There must be other reasons ATTRACTION to visit the area when games are not being In cities where this strategy is perceived to played. have been successful, the sport facilities Most arenas have a similar problem, but were not isolated investments. Rather they they do have the capacity to host a much were part of an overall development plan wider array of events to supplement the that led to complementary downtown invest- sport dates. However, a small number of ments in entertainment, arts and cultural arenas, most notably the Staples Center in centers. These cities have followed the prin- Los Angeles, are themselves major attrac- ciple of creating a threshold level of cumulat- tions. The Staples Center has three sport ive attraction. This recognizes that a given tenants: Los Angeles Lakers (NBA), Los number of attractions will do more business Angeles Clippers (NBA), and Los Angeles and create more proximate development if Kings (NHL). Together, these tenants typi- they are located close to each other than if cally host approximately 250 events and they are dispersed. The emergence of attract over 4 million patrons. “urban entertainment destinations” has It is widely acknowledged that “Indianapo- been identified as one of the most significant lis wrote the textbook on using sports and developments in transforming cities cultural facilities to revitalize its downtown throughout the developed world (Hannigan, area” (Rosentraub, 2010, p. 94). Appendix 1 1998). to this paper describes how the city’s leader- The cumulative attraction principle states ship over a four-decade period not only that in order to persuade people to go down- rebuilt a moribund downtown center, but town, so there is sufficient traffic for it to be also kept it vibrant and expanding with a viable for businesses to locate there, there second wave of capital projects to replace has to be a critical mass of complementary facilities built to initiate the rebuilding attractions. This notion was an explicit process (Rosentraub, 2010; Schimmel, 1995). reason for selecting the Camden Yards site Two other cities in the USA where public for the pioneering Orioles’ baseball park in investment to create a threshold level of Baltimore which was a model others sought cumulative attraction is widely believed to Downloaded by [Texas A&M University Libraries] at 10:35 03 April 2014 to emulate: “The basic rationale for selecting have resulted in relatively successful down- the site was that the presence of multiple town rejuvenations are Baltimore and Cleve- attractions would induce more attendance land. At the Baltimore Inner Harbor area, in both at Orioles’ games and other downtown addition to the new major league stadiums attractions than either could generate in for baseball and American football, the city the absence of the other” (Hamilton & contributed to building the $50 million Kahn, 1997, p. 255). It is untenable to PowerPlant Live! two blocks of entertain- believe that a single facility standing alone, ment complex, a convention center and a such as a major league baseball ballpark science center, and it hosts the National could induce substantial associated econ- Aquarium. Similarly, while Cleveland’s rede- omic development, given that it operates velopment effort was highlighted by its Proximate development 5

investment in three new facilities at the previous dilapidated buildings, deterioration Gateway Complex for major league football, and dereliction. In contrast, if amenities are baseball and basketball franchises, the city dispersed across a wide area, more also restored the five theaters for the per- resources are required to develop all proper- forming arts that constitute Playhouse ties in the district, so there is a risk the final Square, built the Rock and Roll Hall of Fame outcome may be that each amenity “is an iso- and Museum, and constructed the Science lated island of activity in a larger sea of dete- Center and IMAX theater. riorating properties” (Rosentraub, 2010, The principle of cumulative attraction has p. 252). In short, there is a danger that the been similarly prominent in cities where legacy may be limited to a set of (perhaps) minor league facilities have been a central iconic buildings separated by a vacuum of element in successful downtown rejuvena- windswept empty space, isolated from the tion. For example: city around them. In addition, to the tightly defined geo- . AT&T Bricktown Ballpark, home of the graphic district, three other conditions are Oklahoma Redhawks is the anchor of Okla- key features of successful rejuvenations. homa City’s entertainment district. It sits First, catalyst investments must offer next to a canal where visitors can ride a unique experiences. That is, the experiences water taxi. There is also plenty of shop- cannot be replicated anywhere else in the ping, outdoor dining and nightclubs. The metropolitan area, so there are no direct sub- whole neighborhood has become a stitute options. Major sport facilities gener- destination. ally meet this criterion, as do other major . Louisville Slugger Field in Kentucky is close entertainments, concert, theater or cultural not only to the baseball bat museum, but facilities. Second, these facilities must have also to the Fourth Street Live entertain- convenient parking options or proximate ment district, featuring a comedy club, reliable public transportation so suburba- music clubs and a Hard Rock Cafe´. nites can easily access them (Rosentraub, “People just pour over there after the 2010). Third, the facilities must be integrated game”, said a Louisville Bats spokesman, as part of a holistic plan. This point is devel- “Most of the people who come here aren’t oped later in the paper. coming to see the players. It’s the attrac- tions, the promotions” (Seewer, 2006, p. B1). CLUSTERING Indianapolis, Los Angeles, San Diego, Clustering is a form of cumulative attraction Columbus, and Ohio have all been identified that occurs at a regional rather than a local as cities in which sport projects have been level. It recognizes that there is a tendency Downloaded by [Texas A&M University Libraries] at 10:35 03 April 2014 an effective catalyst for urban redevelop- of businesses in any industry to cluster in a ment (Rosentraub, 2010). A key to their particular region in industrial agglomera- success was that these cities’ investments tions because of the symbiotic and comp- were concentrated in a relatively small area lementary relationships among them. Some and they built out from the middle. Revitali- sports, especially those where cutting-edge zation is most likely if the core demographic technology is paramount to their competi- area of redevelopment is relatively small tive viability, have stimulated such clusters. since this makes it easier to ensure that all Much of the success of these clusters is buildings and land within the district are attributable to the horizontal networks of developed. This creates an image of informal and formal interactions that success and vitality that contrasts with the develop among companies in the industry. 6 Crompton

Although nominally some of them may be the media focused upon the America’s Cup. viewed as competitors, their leaders fre- The frequent references to high-technology quently share information, problem-solving products and Freemantle created a nexus in techniques that face the industry, and socia- many people’s minds and stimulated such lize together outside the work environment. development in the area (Newman, 1989). Hence, there are multiple interactions in a Similarly, the natural harbors, concen- variety of settings so a colleague might tration of population, and affinity of New become a customer or competitor (Putnam, Zealanders for sailing have combined to 2000). These clusters allow for information create a marine cluster in Auckland. It has flows, mutual learning and economies of grown dramatically in the last three scale. decades, so the annual gross output of For example, the British motorsports marine industries in the area is approxi- industry is clustered within a 50-mile radius mately US $700 million. The core is boat around Oxfordshire. The region is known as building, but it also incorporates upstream Motor Sport Valley. The cluster employs activities such as production of composites, over 30,000 people and comprises primarily spars and sails, and downstream activities small- and medium-sized firms with only a such as refit/maintenance and international handful employing more than 200 people. sailing regattas (Murray, 2009). They constitute a “knowledge community” The global horse racing industry has three united by a common set of norms, values dominant eque-culture clusters: the Blue- and understanding (Henry & Pinch, 2000). grass Region of Kentucky, the Upper Hunter The area produces vehicles and equipment region in Australia, and Newmarket in for Formula One, Championship Auto England. The Kentucky cluster, for example, Racing, Indy Racing League and Rally cars centers on the city of Lexington and includes (Connaughton & Madsen, 2007). The proxi- approximately 450 horse farms, the Ken- mate location of these companies results in tucky Horse Park, the International Horse technological knowledge spillovers that Museum and the American Saddlebred enhance the chances of winning. An empiri- Museum, the Red Mile Harness Track, and cal study of this clustering concluded: “One the famous Kentucky racetrack and auctions of the most important ways in which knowl- (McManus, Albrecht, & Graham, 2013). edge is spread within the motor sports indus- The Indianapolis Motor Speedway (IMS), try is by the rapid and continual transfer of Indianapolis Raceway Park, Indianapolis staff between the companies within the Speedrome and other venues stimulated industry” (Henry & Pinch, 2000, p. 128). the emergence of over 400 motor sport- Indeed, on average, personnel move every related businesses, employing almost 9000 3.7 years, so there is a “churning of knowl- people, to support the multiple CART, Indy Downloaded by [Texas A&M University Libraries] at 10:35 03 April 2014 edge” (Connaughton & Madsen, 2007, p. 194). Racing League, National Hot Rod Associ- When the America’s Cup Challenge was ation, karting, midget and sprint car teams held in Freemantle, Western Australia, it that are based in the city. A major hub of had the effect on the city of boosting devel- these ancillary businesses is a four block opment of both new marine-related indus- area south of the Indianapolis Speedway tries and non-marine-related high- known as “Gasoline Alley”, where an impress- technology businesses such as computer ive array of suppliers, fabricators, chassis systems, advanced metals technology, and builders and engine builders are located. synthetic fibers. These products were promi- An analysis of the Indianapolis cluster con- nently publicized in the Australian media cluded: “The concentration of racing firms during the prolonged period of years when in the state enables both individuals and Proximate development 7

companies to enjoy the benefits of a highly The site locations of some facilities at skilled and mobile work force that moves most Olympic Games since Munich in 1972 from company to company as demand illustrate the first element. changes” (Klacik & Cook, 2004, p. 8) Proxi- . Munich 1972: Development of a 600 acre mity was viewed as critical because immedi- derelict site for the Olympic Park. ate face-to-face feedback from the team of . Seoul 1988: Decontamination of the Hun companies striving to improve the reliability River. or speed of a vehicle is required. Interest- . Barcelona 1992: Development of a decaying ingly, the IMS was built with private invest- industrial area, including 5 kilometers of ment; all subsequent improvements to the derelict port which cut off the sea from facility are privately funded; and it pays its the rest of the city. full share of property taxes. . Atlanta 1996: Development of a city center Perhaps the most renowned example of contaminated site. sport clustering is the array of ancillary . Sydney 2000: Creation of the Olympic Park business that has been spawned by the pres- at Homebush, the city’s largest brownfields ence of NASCAR headquarters and teams in site where the 600 acre area was previously the Charlotte area of North Carolina. This is occupied by an armaments depot, a brick- described in Appendix 2 (Connaughton & works and an abattoir. Madsen, 2007). . Athens 2004: Development of the city’s old airport site. REJUVENATION THROUGH MEGA . London 2012: Regeneration of the indust- EVENTS rially decayed and economically depressed Lea Valley East London district of Strat- Almost all mega event property owners ford. After 150 years of industrial abuse include urban rejuvenation as a prime and dereliction, the river was polluted requirement in the bid specification docu- with raw sewage, and the soil was contami- ments that prospective host cities submit. nated with arsenic, lead and a host of other For example, the London Games bid stated, pollutants. “By staging the Games in this part of the city, the most enduring legacy of the Olym- The reality confronting most major cities pics will be the regeneration of an entire is that the large acreages required for new community for the direct benefit of everyone sport facilities and ancillary parking are who lives there” (Candidate file, 2007 cited in only available at affordable prices at these Davies, 2012, p. 318). This is given a major deteriorated sites. Their redevelopment is weighting among the host selection criteria, expensive, but the civic and ecological because properties recognize the costs of benefits from upgrading them may be per- Downloaded by [Texas A&M University Libraries] at 10:35 03 April 2014 staging mega events are so high they ceived to be sufficient to justify the expense cannot be justified by prospective bidders to constituents. to their constituencies as investments If facilities built for a mega event are rather than subsidies without urban rejuve- planned with their future utilization as the nation being a prominent outcome. The reju- primary consideration, then they can be an venation legacy is likely to comprise three ongoing source of both positive economic elements: (i) rehabilitation of derelict land, impact and social capital. Appendix 3 decaying industrial sites, or contaminated describes the comprehensive array of areas; (ii) a set of new and/or upgraded viable sport facilities Manchester enjoyed sports facilities; and (iii) infrastructure as its legacy from hosting the Common- improvements. wealth Games. The key factors in its 8 Crompton

success were integration of the sport facili- 63,700, gambling that his suburb would ties with other amenities as part of the win the championship game. Although city’s long-term comprehensive plan, and a $640 million was spent, the final game clear a priori vision of their post-Games role. went to Yokohama. If a priori consideration for post-event use . In Miyagi, a 49,000-seat stadium was built in does not underpin the whole planning a remote location accessible from the pre- process, then the result is likely to be a fectural capital by taking two trains and a herd of white elephants, which was the 10-minute bus ride. That showcase cost legacy of the Athens Olympic Games. This $585 million. occurs because mega events are exceptional . In Oita, the 43,000-seat Big Eye cost $464 in terms of both their infrequency and the million. Local tax critics note that the specialist and immediate demands they J-League soccer games held in it attracted make on a host economy. They are alien to an average of only 3000 fans (Brooke, 2002). the host economy and are unlikely to be a natural “fit” with it, so changes have to be Integration into a holistic plan involves made to accommodate the events. There considering not only the post-event capacity are limited uses for shooting ranges, velo- of facilities per se, but also of their effect on dromes, rowing centers, equestrian courses existing facilities. If viability of the new facili- and the array of other esoteric sport facilities ties is accomplished by cannibalizing the use that host communities commit to providing. of pre-existing facilities, then there are no net Diverting substantial resources into con- economic or development capital gains. This structing and operating a plethora of non- was the conundrum confronting the two sustainable sport facilities rather than more major stadiums built for the Sydney Games. productive uses, means that mega events It appeared their viability could only be have the potential to disrupt rather than achieved by pre-empting events at pre-exist- enhance a host community’s long-term econ- ing stadiums in the metropolitan area, which omic growth. were all newly built or extensively renovated In the case of mega events especially, the in the previous decade and a half (Searle, problem of “over-building” may be exacer- 2002). bated by the substantial regional, state and In many cases, hosting a mega event federal funds often made available for devel- enables cities to “fast track” infrastructure oping facilities. These external entities may improvements that have long been talked want the “biggest, best, most ostentatious” about but not enacted. These events facilities in order to garner maximum pres- appear to accelerate change rather than to tige and political premium from the event, initiate it. The event focuses the attention while the onerous post-event costs of operat- of elected officials and creates a sense of Downloaded by [Texas A&M University Libraries] at 10:35 03 April 2014 ing them is usually borne exclusively by the urgency and priority. The commitment and cities. media headlines inherent in a mega event The hubris that too often accompanies are dynamic forces for driving through pro- mega events was well-illustrated by some of jects that might otherwise languish in the new stadium construction in Japan bureaucratic limbo. Thus, the London when that country co-hosted the soccer Chamber of Commerce opined: “The most World Cup: enduring reason for bringing the Games to London is that it will create an impetus to . In Saitama, an hour north of Tokyo, the pre- raise the capital’s transport infrastructure” fectural governor expanded the original (Woods, 2005). Invariably, the expedited seating capacity of its stadium by 50%, to time frame is possible because additional Proximate development 9

resources originating outside the city from 50 years worth of infrastructure being col- the regional, state or federal governments lapsed into an eight-year period at a cost of are mobilized that otherwise would not be $8 billion (Daly & Fickling, 2002). forthcoming. Similarly, the substantial investment in There are real-time constraints that are telecommunications infrastructure for the not postponable. If the infrastructure Sydney Olympic Games was an enduring upgrades needed to accommodate the legacy for that city: event are not completed, then the conse- The successful handling of the telecommuni- quences are worldwide criticism; civic ridi- cations aspects of the Sydney Games, not cule, disgrace and humiliation; and a only provided a major boost to the inter- severely damaged image. Thus, things get national credibility of the technology provi- done that would otherwise not get done or ders (coordinated by the national telco – be delayed. The external pressures lead to Telstra), but also provided Sydney with a the resolution of internal urban conflicts. long-term inheritance in the form of signifi- Inflexible positions among planners, poli- cant extensions and enhancements to the ticians, business elites and residents are City’s fiber optic network. Telstra’s Millen- resolved either by negotiated compromises nium network included a total of 4,800 km or special legislation or regulation. The of fiber optic cable, linking 105 locations downside of the expedited timeframe is the but focused on a ring between the Sydney CBD and Olympic Park in the city’s inner potential for irreversible planning mistakes western suburbs. (Cushman, 2006, p. 107) stemming from too little input or suppres- sing opposition to improvements, especially From an economist’s perspective, the defin- from less influential stakeholders. ing question in ascertaining the success of The potential of mega events for upgrad- a mega event in stimulating rejuvenation is: ing infrastructure was well-illustrated by Could these regeneration benefits have the Olympic Games in Barcelona, which is been secured at a cost less than, for widely heralded as the “Regeneration example, the estimated $20 billion cost of Games”. The city used the Games to hosting the Barcelona Olympics? implement an imaginative, wide-ranging If regeneration is needed, it should be worth urban renewal plan that transformed its doing irrespective of any investment in decaying industrial fabric (Tookey & Veal, major sporting events and facilities. The rel- 2000). The city was opened to the sea and a evant analysis should compare the costs run-down coastal area was rejuvenated to and benefits of achieving regeneration in include a new marina, leisure facilities and other ways, to establish which is likely to attractive sandy beaches. There was major be the more cost-effective. (Department for investment in new transportation systems, Culture, Media and Sport, 2002, p. 68) Downloaded by [Texas A&M University Libraries] at 10:35 03 April 2014 including the construction of a coastal ring road; modernization of the port and airport; and restructuring of the city’s rail network. INTEGRATION: A KEY TO EFFECTIVE Other major improvements included reno- REJUVENATION vating the sewer system, building residential facilities which served as the Olympic The aspiration is that sport facilities will Village, and upgrading the urban technology serve as “giant embers slowly kindling a and communications systems which was fire” (Bullard, 1998, p. 6). However, a major necessary in order to accommodate the sport facility can only be an effective catalyst world’s media. Officials in Barcelona esti- for redevelopment if it is part of an inte- mated that hosting the Games resulted in grated, coherent master plan rather than an 10 Crompton

ad hoc initiative which it is vaguely hoped sector invested an additional $2.5 billion in may stimulate private retail commercial or the following 13 years. The resultant tax residential development nearby. It is widely revenue collected by the city substantially recognized, for example, that a key factor in exceeded its investment in the project the success of the Barcelona Games was (Winfree & Rosentraub, 2012). their integration into the city’s strategic This broader integrative vision has design long-term plan. Similarly, the 1964 Tokyo implications. A facility cannot be a catalyst Games were an integrated element of that for development if it is an island built in the city’s 10-year development plan involving middle of a sea of surrounding concrete car road improvements, harbor development, park (Baade & Dye, 1988). This isolates fans housing and tourism projects, water from other development, rather than inte- supply, sewage disposal plants and public grating them. If the stadium is intended to health improvements. Relatively little was stimulate other development, then patrons spent on new sport facilities and the should be channeled to it through carefully Olympic village, but the improvements planned corridors to maximize secondary included construction of 22 new main high- economic activity (Schaffer & Davidson, ways and two new underground railway 1984). Further, the design should build lines (Essex & Chalkey, 1998). upon and assimilate the character of sur- Without integration, public expenditures rounding structures; otherwise the facility are more likely to be subsidies to wealthy becomes an ugly intrusion on the urban owners of franchises or mega events than fabric instead of an indigenous component justifiable investments. It has been observed: of it. Thus, at Camden Yards in Baltimore; “Too many critics did more ‘hoping’ than Indianapolis; San Diego; and Columbus they did planning a strategy or establishing Ohio, all viewed as successes, the sports partnerships with private capital to achieve facilities were carefully crafted in terms of success” (Rosentraub, 2010, p. 3). The differ- their scale (height) and construction ing extent to which integration of sport facili- materials to ensure they fitted into the neigh- ties has been carefully planned and executed borhoods (Rosentraub, 2010). as part of a holistic approach, explains most There is not necessarily a natural symbio- of the variability in the effectiveness of sport tic relationship between a sport facility and facilities in accomplishing their catalyst role. other kinds of economic activity. Its use is In the past, focus was on building a sport episodic and is interspersed with prolonged facility. Now the vision typically is broader, “dead time” when the area around it may and the broader vision is likely to provide be deserted. Thus, facilities have to comp- more justification for public involvement if lement daily life in the district. This is why it can successfully facilitate additional Wrigley Field, a beloved baseball stadium Downloaded by [Texas A&M University Libraries] at 10:35 03 April 2014 urban redevelopment. For example, in Los on the north side of Chicago, has been Angeles the Staples Center was completed extolled as a prime example of how commu- at a cost of $400 million of which the public nities can interact effectively and a model sector provided $72 million. However, the which new major facilities should seek to public sector was responsible for assembling emulate: the land needed for the project and used it as There’s eighty-one baseball games a year an anchor for transforming a section of there, and it certainly is a natural draw; downtown Los Angeles. The integrated plan people all over the world come to go to incorporated thousands of residential units Wrigley Field, to that neighborhood, but the and a set of community amenities for neighborhood functions quite well the nearby neighborhoods in which the private other 280 days of the year when there is Proximate development 11

not a game there. Within a five-minute walk revenue opportunities: luxury suites, club from the pitcher’s mound at Wrigley Field, seats and elaborate concessions, and bars, you’ve got businesses, restaurants, schools, restaurants and even apartments with a churches, convents, and public transpor- view of the playing surface. Since the start tation. There’s a daily life to the neighbor- of this era, 77 new or substantially renovated hood that exists independently of the fully loaded facilities have been completed in ballpark. The ballpark enhances, and vice versa, but the notion of the city is the the USA in the four major professional notion of a place where people live and leagues (Howard & Crompton, 2014). work and hang out all the time. (DeMause & Prior to this era, it was anticipated that Cagan, 2008, p. 147) complementary development to service the major sport facilities would emerge proxi- Many new stadiums do not foster surround- mate to them in the form of restaurants, ing development because they are not phys- bars and souvenir stores. Coors Field, the ically interwoven with other components of home of the Colorado Rockies baseball the urban fabric. Rather, these stadiums are team sometimes is cited as an example of designed for quick entry and exit of subur- this type of catalyst role. It is credited with ban fans with automobiles. Even though helping the revitalization of Denver’s Lower they are technically inner-city facilities, Downtown or “LoDo” district. Restaurants, often their urban integration is limited to sports bars and sports memorabilia stores supplying parking facilities close to the opened with Coors Field to serve the over downtown business district. three million fans who attend Rockies games. However, the new generation of fully THE CONFLICTING GOALS OF PUBLIC loaded facilities means there is now little AND PRIVATE INTERESTS opportunity for businesses to flourish in a parasitic relationship with major facilities. It has been pointed out that an integrated The facility owners’ intent is to capture all plan allows: discretionary spending by their visitors on the public and private investors to clearly food, beverage, merchandise and the like understand a city’s redevelopment goals within the facility, and to minimize the and what the completed projects will amount visitors spend at businesses in the produce [which] helps to create confidence proximate area outside the facility’s gates. that the dream can become a reality ...[It] It has been suggested that these new facili- enables private investors to determine how ties are analogous to European walled cities a related project that they would create seeking to enclose all commercial activities would complement and benefit from the and revenue flows within their confines (Sieg- overall strategy and interconnections fried & Zimbalist, 2000), and has been termed Downloaded by [Texas A&M University Libraries] at 10:35 03 April 2014 among all the planned assets. (Rosentraub, the “Disneyfication” of sport: 2010, p. 254)

However, while a primary public rationale for . When Walt Disney saw that his Disneyland investing in major league facilities is for them theme park in Anaheim, California, stimu- to stimulate the rejuvenation of an area, lated numerous hotels, restaurants and major league teams are not in the urban rede- other recreational values in the proximate velopment business. area, he determined that in future develop- In the mid-1990s, the “fully loaded” era of ments he would capture those revenue sport facilities emerged in the USA. They streams. This he accomplished when were filled with elaborate amenities and Disney World was developed in Florida. seating options designed to create new This incorporated all those elements and 12 Crompton

captured the complete range of economic development around the Metro- spending associated with the park visit dome. (Eckstein & Delaney, 2002, p. 240) experience. New “fully loaded” sport facili- He was acknowledging that when the Metro- ties embraced this strategy (Rosentraub, dome was constructed, promises of econ- 2008). omic development and selling lucrative development rights to the parcels of land Thus, the pioneering Baltimore Orioles Park around the dome were made, but in sub- at Camden Yards stadium features an sequent decades there was no economic outdoor walkway lined with souvenir shops spin-off in the surrounding area. and fast food outlets, but it is within the The ideal situation is to secure this com- stadium. As one critic observed, “These mitment during initial negotiations with guys are supposed to be capitalists and for private partners seeking public funds. The the free market, but that’s the last thing potential of this strategy was demonstrated they want! They want to have a monopoly” in San Diego’s negotiations with the Padres (DeMause & Cagan, 2008, p. 144). Given this regarding the city’s investment in PETCO reality, it is possible that in some contexts, Park baseball stadium: a major sport facility may deter redevelop- ment of an area, since periodically full . The team were appointed master develo- parking lots and match day traffic gridlock per of a dilapidated 26-block area around might have an adverse effect on people’s will- the stadium. They guaranteed to generate ingness to visit the area. a sufficient level of private investment Public investment in sport facilities can from this area to yield the property taxes create a platform for private sector activity, needed to pay the annual payment on the but success is dependent on leadership and bonds the city issued to pay its share of investment from the private sector. Inte- the facility. The formal agreement stated, gration into a development plan is a necess- “The Padres and its Master Developer will ary condition, but it is not sufficient. It have an additional 24-month period of must be accompanied by large-scale private time after Opening Day to have on the sector investment. The experiences of the tax-rolls projects with an assessed valua- large number of cities that have contributed tion of at least $311 million.” They also substantial tax funds to fully loaded sport promised to develop 850 hotel rooms to facilities in the past two decades confirm generate hotel taxes that the city would that the likelihood of them successfully use to pay off some of the bonds. anchoring downtown rejuvenation is rela- tively low. It is only the exceptional city When the ball park opened, 744 hotel rooms that has accomplished this. A business and had been completed and the Padres claimed Downloaded by [Texas A&M University Libraries] at 10:35 03 April 2014 civic leader in Minneapolis who was instru- that higher than planned room rates would mental in bringing professional sports to compensate for the tax lost on the 106 that city observed: uncompleted rooms. Six months after the park opened, there had been $1.2 billion in The argument about economic development private investment in the 26-block area; and has been attempted here, but it’s never the Padres arranged at least $600 million of proven to be true. I don’t think it is a strong argument. Do businesses open up because it. Thus, development exceeded the guaran- they want to be near a stadium? I don’t tee by 400%. The team owner personally think so. People go to a stadium for one benefited from the associated development, single purpose, to go to a game. They are as his development company purchased not going shopping. There has been no much of the land in the area that was built Proximate development 13

on. Nevertheless, there is universal recog- acknowledged as specious, advocates are nition that redevelopment of the downtown now likely to focus on the proximate devel- area anchored by the ballpark has been an opment the investment stimulates and its impressive success, generating a positive contribution to economic development. cash flow for the city (Hitchcock n.d.). This emphasizes the potential catalytic effect of the facility in stimulating retail, com- mercial and residential development, and CONCLUDING COMMENTS physical infrastructure improvements that As it has become apparent that public invest- they stimulate. ment in major league and mega event sport Business elites are likely to have a vested facilities rarely can be justified in terms of interest in major facilities being developed. direct net economic impact, attention has This includes firms such as banks, real turned to the benefits from proximate devel- estate developers, elements of the tourism opments that these facilities may stimulate. industry like hotels and restaurants, legal These developments comprise the built firms, insurance companies, construction sport facilities, complementary development firms, and potential suppliers of merchan- associated with them, and physical infra- dise, equipment and other services, and structure improvements that they stimulate. materials. These business leaders have To this point, much of the effort in measur- recognized the increased public skepticism ing the influence of sport facilities has of economic impact claims, and the growing focused on their economic, social and awareness that there are alternate projects environmental impacts. However, the econ- in which the hundreds of millions of public omic measure typically is limited to econ- dollars invested in major sport facilities omic impact of attendees and does not would yield a higher return. Thus, their advo- address the broader issue of the impact on cacy now tends to focus on the associated a community of associated structural invest- development benefits that may accrue from ments (see, for example, www. the project. eventIMPACTS.com sponsored by Visit As the debate has shifted, it has been Britain, UK Sport and others). This paper suggested the hyperbole that characterized contributes to filling the gap. Further, it is many economic impact analyses is now a suggested that these structural investment feature of arguments proclaiming the associ- impacts may be viewed as output measures ated development benefits of major sport that influence social capital which is the ulti- facilities (Eckstein & Delaney, 2002). The dis- mate outcome measure of interest. cussion in this paper has sought to provide Throughout the world, political leaders an overview of these arguments. While it are required to justify to their constituents has focused primarily on mega events and Downloaded by [Texas A&M University Libraries] at 10:35 03 April 2014 the opportunity cost of their spending sub- major league franchises in the USA, most of stantial public funds on mega events and the principles are likely to apply to major facilities, while critical social needs go sport facilities and events in other countries unmet. In the US context, this imperative and contexts. focuses on sport facilities for professional Increasingly, advocates of major sport franchises, since in the last two decades projects claim they will stimulate associated approximately $20 billion of public money development, but the performance of most has been spent on these facilities (Howard of them falls short of the expectations they & Crompton, 2014). Given that the claims of create. In some cases, this may reflect a mis- direct economic benefits from such facilities chievous strategy where there was never have been widely exposed and serious intent to follow through once public 14 Crompton

funds had been committed to the project. In legacies and London 2012. Leisure Studies, other cases, failure may be attributable to a 31(3), 309–337. lack of understanding of the ingredients Cartwright, G. (2004, October). Arlington’s team. necessary for success. This paper suggests Texas Monthly, pp. 78–80, 105. that in the case of facilities developed for Connaughton, J. E., & Madsen, R. A. (2007). The economic impacts of the North Carolina professional sport teams, those ingredients motorsports industry. Economic Development at the city level are a critical mass of comp- Quarterly, 21(2), 185–197. lementary attractions, while at the regional Crompton, J. L. (1995). Economic impact analysis level the requirement is a critical mass of of sports facilities and events: Eleven sources businesses that “feed off” the sport facilities. of misapplication. Journal of Sport Manage- In the case of mega events, a return on ment, 9, 14–35. investments may be in the form of environ- Crompton, J. L. (2007). Economic impact studies: mental rehabilitation, a legacy of long-term Instruments of political shenanigans? usable facilities, or “fast-tracked” infrastruc- Journal of Travel Research, 45(1), 67–82. ture improvements. In all of these contexts, Cushman, R. (2006). The bitter-sweet awakening: investments in sport facilities will only be The legacy of the Sydney 2000 Olympic Games. Sydney: Walla Walla Press. effective if they are part of an integrated Daly, E., & Fickling, D. (2002, December 6). Barce- coherent master plan. lona and Sydney: The hosts who got the most. The Observer. Deloitte & Touche. (1997). Evaluation of the pro- posed Dallas Arena. Los Angeles, CA: Deloitte REFERENCES & Touche LLP. Baade, R. A., & Dye, R. F. (1988). An analysis of DeMause, N., & Cagan, J. (2008). Field of schemes: economic rationale for public subsidation of How the great stadium swindle turns public sport stadiums. The Annals of Regional money into private profit. Lincoln, NE: Univer- Science, 22(2), 37–47. sity of Nebraska Press. Baade, R. A., & Matheson, V. A. (2000). An assess- Department for Culture, Media and Sport. (2002). ment of the economic impact of the American Game plan: A strategy for delivering govern- Football Championship, the Super Bowl, on ment’s sport and physical activity objectives. host communities. Reflets et persepectives de London: DCMS Strategy Unit. la vie economique, 39(2–3), 35–46. Eckstein, R., & Delaney, K. (2002). New sports sta- Baade, R. A., & Matheson, V. A. (2001). Home run diums, community self-esteem, and commu- or wild pitch? Assessing the economic nity collective conscience. Journal of Sport & impact of major league Baseball’s all star Social Issues, 26(3), 235–247. game. Journal of Sports Economics, 2(4), 307– Essex, S., & Chalkey, B. (1998). Olympic Games: 327. Catalyst of urban change. Leisure studies, Baade, R. A., & Matheson, V. A. (2004). The quest 17(3), 187–9.

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APPENDIX 1 To address this desolation, a plan was developed by elected officials, business The renaissance of Indianapolis leaders and the major philanthropic insti- Indianapolis is most often cited as the city tution in the city to collaborate and use which most effectively used sports as a sport as the central foundation upon which central focus for rejuvenation. It was a to build an amenity infrastructure for the model which officials in many other cities downtown area, but it was to be sought to emulate. The city was the eleventh accompanied by investment in other comp- largest city in the USA in 1980, but the only lementary live entertainment facilities. The thing people thought of when Indianapolis city’s central demographic location, both was mentioned was its annual 500-mile within the state of Indiana and in the USA, auto race. The novelist Kurt Vonnegut who was perceived as an asset. The goal was to was a native son, when appearing on The turn Indianapolis into the “Sports Capital of Tonight Show famously commented that the the USA”. It was anticipated that this would city was a cemetery that came to life for stimulate downtown redevelopment and one day each year for the Indianapolis 500 provide a positive image and national iden- and then fell back comatose for the other tity for the city. 364! The city was derisively nicknamed It was a comprehensive strategy. It com- “India-no-place” or “Naptown”. Indeed, the menced with recruitment of NBA and NFL principal of a consulting firm commissioned franchises (Pacers and Colts) which with to conduct a national survey to understand the existing Indianapolis 500 race provided the perception of the city’s image, com- a good foundation for implementing the menced his presentation to political vision. These were key anchors. When the leaders by saying, “Gentlemen, the good city persuaded the Baltimore Colts franchise news is your city does not have a bad to relocate there, the Mayor of Indianapolis image. The bad news is it does not have a commented: good image. In fact, to many people in the country, Indianapolis has no image at all.” “I was saying for eight years we were in the The city was simply unknown to many process of becoming major league; now we Americans. can say, I think without grandiose pompos- The downtown core of the city was dirty ity, that we are a major league city.” On and filled with vacant, dilapidated buildings. another occasion the Mayor reiterated this theme: “Yes sir, we’re going all the way Like many other old industrial cities, Indiana- now. It’s a wonderful thing for our commu- polis’ businesses and residents had moved nity. It’s a boost to the city’s image nationally away from the central business district. The and to local morale as a symbol of major Director of the Indianapolis Department of league status ...We want people to sit up

Downloaded by [Texas A&M University Libraries] at 10:35 03 April 2014 Metropolitan Development recalled that in and say ‘By gosh, that city has a lot going the late 1970s, the emptiness of the city led for it.’” to some interesting Sunday afternoon Successfully luring the Colts was a key to the excursions for local Jaycees (escorted by success of Indianapolis’ sports strategy. police): However, the sport plan was much more ambitious since it extended to amateur They were downtown with shotguns and bags, shooting pigeons. If you can imagine a sports and attracting a continuous flow of downtown so desolate, there were roving major sporting events. The vision was to guys with shotguns. We had nothing down- create a vibrant downtown area through town. If our goal was to create a city sports which would encourage other compa- nobody wanted to live in, we’d done it. nies and residents to move there. There were Proximate development 17

existing institutions there to build around: seven national sports governing bodies, Indiana University Medical Center; the established their headquarters in Indianapo- 27,000 enrollment Indiana University- lis: The Indianapolis sports movement cap- Purdue University (IUPUI) campus; a large tured widespread attention. It was private sector employer (Lilly); government complemented with investment in a facilities employing thousands in state and number of cultural centers that were reno- local government; and the Hoosier Dome vated or built to complement the sport facili- which was built for the NFL team, but also ties and ensure the downtown area was a was part of the Indiana Convention Center. year-round attraction. These included: The To persuade amateur sports organizations Indiana Theater, home of the Indiana Reper- to consider moving their headquarters to tory Company; the Circle Theater for the Indianapolis and locating their championship Indianapolis Symphony; the Indianapolis events there, the city built a new track and Zoo and Botanical Gardens; the Eiteljong field stadium, tennis center, and state-of-the- Museum of American Indian and Western art natatorium on the IUPUI campus; a velo- Art; an IMAX theater; the County Public drome; and championship standard facilities Library; and new homes for the Indiana His- in other parts of the city for soccer, rowing, torical Society and the Indiana State archery, ice skating and golf. Museum. In the following decade, after the Colts Between 1974 and 2008, nine major sports arrived, two dozen sports connected organ- facilities were built. These are shown in the izations, including one international and following table:

Facility Description Opened Replaced Market Square Indoor arena for Indiana Pacers; capacity 16,530 1974 1999 Arena Tennis Center Seating capacity 10,000 1979 Track and Field Seating capacity 12,111 1982 Natatorium Championship pools; capacity 5000 1982 Hoosier Dome Indoor stadium for Colts, other events, conventions; capacity 1984 2008 57,980 Fitness Center Training and fitness center for all athletes, public 1988 Victory Field Minor League Baseball Park for Indianapolis Indians; capacity 1997 15,000 Conesco Home for Indiana Pacers, other events; capacity 18,345 1999 Downloaded by [Texas A&M University Libraries] at 10:35 03 April 2014 Fieldhouse Lucas Oil Domed stadium for Indianapolis Colts, NCAA Championships, 2009 Stadium other amateur sports events; conventions; events; capacity 63,000 (expandable to 70,000) 18 Crompton

The investments made in rebuilding downtown Indianapolis (in 2007 dollars) are listed below

Public Sector Nongovernmental

Project Type Local Nonlocal Private Nonprofit Total Sports 998.2 188.8 329.6 191.9 1708.5 Culture/entertainment 166.7 51.5 355.1 296.9 870.2 Commercial 1323.3 977 2224.9 8.8 4534.0 Residential 49.2 112.6 380.4 3.7 545.9 Education 663.9 663.9 Total 2537.4 1993.8 3290.0 501.3 8322.5

These data show that the city’s commit- Truck Series; (b) the rapid growth and ment was $2.54 billion, while the total invest- increasing popularity of the NASCAR Busch ment in downtown Indianapolis during this Series; (c) the NASCAR television package period was $8.32 billion. Thus for every which increased national exposure and dollar the city invested, it leveraged $2.25 built the NASCAR fan base; (d) the open- from other stakeholders. The city’s success wheel sanctioning split, which shifted many has been lauded by the national and inter- fans to NASCAR sanctioned racing; (e) the national media which have carried a plethora construction and promotion of new tracks of glowing reports about the city’s trans- across the country hosting NASCAR sanc- formation from “India-no-place” to “the tioned races; and (f) the rapid increase in state of the snowbelt”, which was the title the cost of major sponsorships for compa- bestowed on it by an article in the Wall nies wishing to identify with NASCAR teams. Street Journal. As the sport expanded, many southeast- Source: Rosentraub (2010) and Schimmel ern races disappeared and were replaced (1995). by venues throughout the USA. As a result, Charlotte, North Carolina, no longer rep- resents the geographic least-cost transpor- APPENDIX 2 tation center for the series. However, the The industrial cluster stimulated by Charlotte area remains home to most NASCAR NASCAR teams because the region had devel- The cradle of stock car racing was the south- oped a specialized labor pool, a well-devel- eastern region of the USA. Most of the oped supplier chain, an infrastructure in NASCAR race was staged within this region, the form of race tracks and testing facilities, Downloaded by [Texas A&M University Libraries] at 10:35 03 April 2014 Charlotte became the primary NASCAR and a culture of stock car racing. These team location because it was centrally factors still provide the teams that are located and, thus, minimized team transpor- located in Charlotte with a significant cost tation costs. During the past two decades, advantage in obtaining highly qualified NASCAR expanded out of its traditional geo- specialized labor, a specialized parts indus- graphic regions and grew to be the second try, access to testing facilities and knowledge most popular sport watched on television spillovers. At least 50 NASCAR teams have in the USA. NASCAR’s and the motor sports’ their home base there: industry’s growth in North Carolina has If you need it for racing, somebody makes it been driven by six major factors: (a) the cre- somewhere in town. The infrastructure is ation and growth of the NASCAR Craftsman here to support racing. Parts suppliers, Proximate development 19

machine shops, coating companies. If you go supplemented by heavy engineering works any place else in the country and try to do and transport, chemical and other manufac- this, you’re going to be FedExing stuff back turing plants. In the post-World War II and forth every day. (Spanburg, 2001b, p. 25) years, its industrial base eroded so in the The North Carolina cluster includes race last two decades of the twentieth century, car construction, engine manufacturers and the city sought to reposition itself as a specialist supporters, but it is also com- business and tourism destination. Manche- prised racing-specific businesses that are ster’s successful bid to host the Common- not engaged in producing race cars or parts wealth Games was part of its 25-year plan such as specialized sport marketing, souve- to rejuvenate the city. The Commonwealth nir manufacturing and retailing, television Games ranks as the third largest sporting production, and other motorsports-related event in the world after the Olympics and activities. The cluster’s aggregate annual World Cup, involving 72 countries in 17 direct expenditure in the North Carolina sports. economy is $3.8 billion which represents The core strategy was development of an over 1% of all direct spending in the state. impressive array of publicly funded attrac- The employment impact consisted of 14,300 tions and much was accomplished in the direct jobs, with the primary employers 1980s and 1990s. Its airport was expanded being NASCAR teams (4445 jobs), suppliers and emerged as a major European hub. It (2050 jobs) and marketing sector (1768 jobs). served the North and Midlands of England Indicative of NASCAR’s widespread indir- via a well-developed freeway system and ect impact on the state is its role in the devel- excellent rail links. A 20,000 seat arena opment of Concord Regional Airport. hosted an impressive number of concerts NASCAR and the nearby Lowe’s Motor and an international convention center was Speedway are primarily responsible for its built. The city art galleries emerged; two development, since 40 planes belonging to live theaters were renovated; the Imperial race teams are based at the airport. Those War Museum of the North was opened; and planes purchase $4.5 million worth of aero- the futuristic architecture of Urbis, the plane fuel a year at Concord airport. When museum of the city, became a noted the Speedway hosts its three annual landmark. Winston Cup events, the airport traffic In 1996, an IRA terrorist bomb devastated grows much heavier with sponsors and fans the city center. There were no fatalities, but bringing in their planes. The NASCAR con- over 200 people were injured and insurance nection has created a community asset, pay outs for property damage exceeded because without it the airport would not be $1.5 billion. However, from this adversity a viable enterprise (Spanburg, 2001a). came a rebuilding investment of over $2 Downloaded by [Texas A&M University Libraries] at 10:35 03 April 2014 ______billion in the next four years creating a host Source: Henry and Pinch (2000). of new stunning cultural and commercial structures that complemented the city center’s majestic Victorian architecture. The city’s intent was to use the Games to APPENDIX 3 create its “sportcity” which would comp- The sport city legacy of the Commonwealth lement the vibrant cultural amenities. Games in Manchester, England Already it was home to the world’s most Manchester’s cotton mills were at the heart famous soccer club, Manchester United, of the industrial revolution in the nineteenth and its lesser known Premier League rival, and early twentieth centuries. These were Manchester City (by 2012 Manchester City 20 Crompton

had been transformed from an “ordinary” . A £32 million Aquatics Center – the only Premier League team to join United as one swimming complex in the UK to have two of the world’s top five soccer clubs). In 50 meter pools. Also the regional high per- addition, the city had constructed a world- formance center for elite swimmers. class velodrome and established it as the . Bolton Arena, comprising indoor and National Cycling Center. outdoor tennis courts, a 400 meter ath- Most of the Sportcity facilities were letics track, plus football, basketball and located in East Manchester at Eastlands on netball pitches. The arena is the Lawn a brownfield site which was designated an Tennis Association’s North West Regional urban regeneration area, characterized by Tennis Center. Its Sport Science and Per- large numbers of derelict and abandoned formance Unit has state of the art sports houses. It comprised the following elements: science and sports performance testing facilities. . The redeveloped Belle Vue Leisure Center, . The City of Manchester Stadium – Orig- east of the city center. This facility boasts inally a 38,000 seater athletics stadium, it of two water-based hockey pitches, eight was converted into a soccer ground after badminton courts, and a cricket academy. the Commonwealth Games. It became the It was designated as the Regional Perform- home of Manchester City FC and had an ance Center for both hockey and badmin- increased capacity of 48,000. ton. Both the girls and boys Under 16’s . The Regional Athletics Arena – A £3.5 m and Under 18’s England hockey squads 6000 seater stadium constructed around use Belle Vue as their training base. the Commonwealth Games warm up track . A £1 million lawn bowling complex was and training area. The arena was used for built at Heaton Park in North Manchester. domestic and international track and field The park has four top grade flat greens. meetings. The stadium was also the base The venue was conferred national status for the famous Sale Harriers track and by the English Bowls Association and is field club. home of the Manchester Commonwealth . The National Squash Center – It had seven Bowling Club. squash courts and world-class facilities. The center was the new home of England These facilities were designed for their Squash, the sport’s national governing post-Games purposes and have resulted in body. both substantial economic impact from the . The National Tennis Center – consisting of hosting of numerous national and inter- six indoor courts, six outdoor courts, and a national sports events, and social capital junior court. for the city’s residents. Downloaded by [Texas A&M University Libraries] at 10:35 03 April 2014