Chapman Argyros School of Business Economists Analyze the Effect of Sports Venues on Cities
Economists from Chapman University’s Argyros School of Business recently commented on the St. Louis Rams return to Los Angeles.
The team’s homecoming will spark economic growth for a city that loves its pro teams, but doesn’t currently have one in the NFL.
While the move back is great news for the city, experts caution that the Rams’ new stadium’s construction budget should be monitored closely, since it is fully funded by private investors. These arrangements have often resulted in extra expenditures and difficulties in recouping dollars.
Esmael Adibi, Ph.D. is professor and director of the A. Gary Anderson Center for Economic Research. He said, “The fact that we don’t have any football team now means that it would be fresh spending… Overall, it is going to be very positive for the city and even the surrounding areas. If it’s private money, that’s fantastic.” Adibi is one of several economists who have researched the economic impact of new stadiums upon the cities which house them.
The benefits for cities are numerous, with job creation, especially in the construction industry, among the foremost. Though the jobs that result when the stadium is in operation will be primarily lower-wage positions, the experts point out that this is still a positive signal of growth for Inglewood. The hotel and restaurant industries will also feel the momentum as the stadium is completed.
The estimated construction cost of the Rams stadium is $3 billion. It will be built on the site of the former Hollywood Park racetrack and will cover a 298 acre site. Terry Fancher, founder of Stockbridge, the project’s developer, said, “After nearly a decade of collaborating with Inglewood city leaders and residents on the redevelopment of Hollywood Park, we are excited to unveil an expanded plan that will bring a world-class sports and entertainment district to Hollywood Park”.
About the Author
Maggie Boccella
Maggie Boccella, a lifelong resident of Philadelphia, is a freelance writer, artist and photographer. She has consulted on various film and multimedia projects, and she also serves as a juror for the city's annual LGBTQIA Film Festival.
