Publicly Owned Single Purpose Stadiums and Multipurpose
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©2013 Stephen J. Dixon ALL RIGHTS RESERVED PUBLICLY OWNED SINGLE PURPOSE STADIUMS AND MULTIPURPOSE ARENAS: A COMPARATIVE ANALYSIS OF ECONOMIC CHARACTERISTICS AND USE DIVERSITY By STEPHEN J. DIXON A Dissertation submitted to the Graduate School-New Brunswick Rutgers, The State University of New Jersey in partial fulfillment of the requirements for the degree of Doctor of Philosophy Graduate Program in Planning and Public Policy written under the direction of Dr. David Listokin and approved by ________________________ ________________________ ________________________ ________________________ New Brunswick, New Jersey May 2013 ABSTRACT OF THE DISSERTATION Publicly Owned Single Purpose Stadiums and Multipurpose Arenas: A Comparative Analysis of Economic Characteristics and Use Diversity By STEPHEN J. DIXON Dissertation Director: Professor David Listokin This dissertation examines the economic characteristics and use diversity of publicly owned single purpose stadiums and multipurpose arenas with a major league professional sports team tenant and multipurpose arenas with a minor league sports team tenant for a one year period. The purpose of this research is to ascertain whether differences exist and may be driven by categories of facility type (single purpose stadiums and multipurpose arenas) and tenancy (major league or minor league sports team). Despite a significant body of literature arguing the expenditure of public funds for major league professional sports is not a wise investment, the trend of public subsidization of new and rehabilitated facilities continues. Facilities constructed for minor league sports have not received significant attention. Comparisons of economic characteristics, such as leakage and facility capital cost, and comparisons of use diversity and civic utilization are performed between single purpose stadiums and multipurpose arenas with major league sports tenants. These same comparisons were made between multipurpose arenas with a major league tenant and those with a minor league sports team ii primary tenant. The findings of this reconnaissance comparative planning analysis are that significant differences in economic characteristics and use diversity exist, in particular between multipurpose arenas with a major league tenant and those with a minor league tenant. This dissertation does not investigate or argue that the investment of public funds into facilities utilized for professional sports is fiscally prudent. It does, however, find that facilities utilized for professional sports should not be classified as a single category and future research should consider type and tenancy. Additional detailed longitudinal analyses are warranted and are needed to provide public officials committed to a sports-based economic development strategy with the data needed to make the wisest, least risky investment decisions. iii ACKNOWLEDGEMENTS An accomplishment such as this is not possible without support and inspiration from colleagues, family and friends. I am so fortunate and so grateful. My thanks go to Professor Susan Fainstein who admitted me to the program to begin this journey and who taught and inspired me. Thanks also to Professors Briavel Holcomb, Julia Sass Rubin and Gwendolyn Harris for serving on my dissertation committee and providing helpful critiques, support and advice. My highest gratitude goes to my dissertation director, Professor David Listokin, who with both compassion and sternness provided encouragement, advice, and motivation along the way; who taught me the basics of academic research and writing; and who, during personal crisis, would not allow me to walk away from my academic dreams without a fight. For those reasons, I will forever consider him a mentor and a friend. My appreciation goes to my fellow classmates over the years and in particular to John Posey who was always available from afar to provide insight, encouragement and suggestions. I am so grateful to my children, grown now into fine young adults. They have encouraged me in this quest since it began. Without their support, I would not have been able to dedicate the time necessary for this undertaking. This work is dedicated to my late mother, a woman who, along with my father, was able only to finish the eighth grade of school before being required to enter iv the workforce at fourteen years of age. She always valued education and always believed in my ability to achieve. It was my hope for her to see that I valued it as well. I believe she did. v TABLE OF CONTENTS ABSTRACT ……………………………………………………………………………….. ii ACKNOWLEDGEMENTS ………………………………………………………………... iv TABLE OF CONTENTS ………………………………………………………………….. VI LIST OF TABLES ...…………...…………………………………………………….. viii LIST OF CHARTS ……………………………………………………………………....… x LIST OF FIGURES …………………………………………………………………..….… xi LIST OF MAPS …………………………………………………..……………………. xii 1. Introduction .................................................................................................................................................... 1 2. The History of Single Purpose Stadiums and Multipurpose Arenas and the Evolution of Public Ownership ................................................................................ 18 3. A Review of Literature on Publicly Owned Single Purpose Stadiums and Multipurpose Arenas, The Dissertation Hypothesis and Research Questions ..................................................................................................................................................... 34 4. Methods and Data Collection ........................................................................................................... 62 5. Data and Findings ............................................................................................................................ 84 6. Diversity of Multipurpose Arena Use and Major League Sports in Glendale, Arizona .................................................................................................................................. 125 7. Diversity of Multipurpose Arena Use and Minor League Sports in Trenton, NJ ................................................................................................................................................ 135 8. Conclusions, Research Recommendations, Research Limitations and Policy Implications .............................................................................................................................. 153 vi APPENDIX A - Arena Data Sheets ................................................................................................................... 173 APPENDIX B - Arena Based Minor League Sports Salaries ............................................... 326 BIBLIOGRAPHY ............................................................................................................................................................ 334 CURRICULUM VITA .................................................................................................................................................. 341 vii List of Tables Table 1.1 2008 Ownership of Single Purpose Stadiums and Multipurpose Arenas With a Major League Sports Tenant ........................................................ 3 Table 1.2 2008 Ownership of Single Purpose Stadiums and Multipurpose Arenas With a Minor League Sports Tenant ......................................................... 3 Table 1.3 Profile of Publicly Owned Single Purpose Stadiums and Multipurpose Arenas ........................................................................................... 10 Table 5.1 NFL Salary – Ticket Sale Ratio ........................................................ 86 Table 5.2 MLB Salary – Ticket Sale Ratio ....................................................... 86 Table 5.3 NHL Salary – Ticket Sale Ratio ....................................................... 87 Table 5.4 NBA Salary – Ticket Sale Ratio ....................................................... 87 Table 5.5 Single Purpose Stadiums with National Football League Tenants .. 91 Table 5.6 Single Purpose Stadiums with Major League Baseball Tenants ...... 92 Table 5.7 Multipurpose Arenas with National Basketball Association or National Hockey League Tenants ....................................................................... 93 Table 5.8 Diversity Table for Publicly Owned Single Purpose Stadiums with a National Football League Tenant ............................................................. 97 Table 5.9 Diversity Table for Publicly Owned Single Purpose Stadiums with a Major League Baseball Tenant ................................................................ 98 Table 5.10 Diversity Table for Publicly Owned Single Purpose Stadiums with a National Hockey League or National Basketball Association Tenant ....... 99 Table 5.11 AHL Salary – Ticket Sale Ratio ..................................................... 102 Table 5.12 ECHL Salary – Ticket Sale Ratio ................................................... 103 Table 5.13 CHL Salary – Ticket Sale Ratio ..................................................... 104 Table 5.14 IHL Salary – Ticket Sale Ratio ....................................................... 104 Table 5.15 SPHL Salary – Ticket Sale Ratio ................................................... 105 viii Table 5.16 WNBA Salary – Ticket Sale Ratio .................................................. 105 Table 5.17 National Basketball Association Income Comparison .................... 108 Table 5.18 National Hockey League Income