Tackling the economics of empty stadiums as the NFL season gets underway
Share Now on:
The NFL season kicks off Thursday. The Wall Street Journal reports that NFL revenue could fall as much as $4 billion in 2020, depending on how many fans eventually attend games.
That’s the reality in Los Angeles, where developers built a grand, new stadium with room for 70,000 people to watch the Rams and Chargers play football — but until things change, there will be no fans.
We take a look at how the current fan-less reality could change future stadium projects.
SoFi Stadium in LA cost almost $5 billion in private money, and there were promises of $100 million in tax breaks and reimbursements to lighten the bill. The sell to local authorities was that new stadiums create jobs and increase tourism spending. But with no fans, “unquestionably it’s a tougher sell,” said Andrew Zimbalist, professor of economics at Smith College.
He said many cities and states are in a budget crisis. Tax revenue to pay for local services is down across the nation.
“A situation that was already very difficult financially for cities and states to help out with the construction of new stadiums now is an impossible one,” Zimbalist said.
And he said that will be the case for a while. Which Michael Leeds, professor of economics at Temple University, called a positive development because stadium construction is “very limited economically. There are only a small number of agents who benefit from this.”
Like sports bars and souvenir shops located near stadiums. But for a city’s overall economy, Leeds said, there’s little to gain.
COVID-19 Economy FAQs
What’s the outlook for vaccine supply?
Chief executives of America’s COVID-19 vaccine makers promised in congressional testimony to deliver the doses promised to the U.S. government by summer. The projections of confidence come after months of supply chain challenges and companies falling short of year-end projections for 2020. What changed? In part, drugmakers that normally compete are now actually helping one another. This has helped solve several supply chain issues, but not all of them.
How has the pandemic changed scientific research?
Over the past year, while some scientists turned their attention to COVID-19 and creating vaccines to fight it, most others had to pause their research — and re-imagine how to do it. Social distancing, limited lab capacity — “It’s less fun, I have to say. Like, for me the big part of the science is discussing the science with other people, getting excited about projects,” said Isabella Rauch, an immunologist at Oregon Health & Science University in Portland. Funding is also a big question for many.
What happened to all of the hazard pay essential workers were getting at the beginning of the pandemic?
Almost a year ago, when the pandemic began, essential workers were hailed as heroes. Back then, many companies gave hazard pay, an extra $2 or so per hour, for coming in to work. That quietly went away for most of them last summer. Without federal action, it’s mostly been up to local governments to create programs and mandates. They’ve helped compensate front-line workers, but they haven’t been perfect. “The solutions are small. They’re piecemeal,” said Molly Kinder at the Brookings Institution’s Metropolitan Policy Program. “You’re seeing these innovative pop-ups because we have failed overall to do something systematically.”
Marketplace is on a mission.
We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.
Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?