Friday, September 22, 2006

$185 million?

Just heard on SportsCenter that $185 million has been spent renovating the Louisiana Superdome. I don't know where that money has come from, but how on Earth is that justifiable? Aren't people still living in trailers? Aren't entire schools still shut down? For crying out loud, mail delivery was just restarted to a good chunk of the city in July. How many times per year does the Superdome get used? Twenty? Fifty?

I wonder what The Sports Economists would say about this.

2 comments:

Ryan said...

I just saw CNN, and they said the same thing. They asked where it came from, the breakdown was something like- $110M from FEMA, $15M from the NFL, and the rest ($60M or so) from the state of LA. Now, they justified that the hotels, bars, restaurants, other entertainment driven businesses of the area benefit a ton by the Superdome being open. This Monday Night Football game will probably make the tax dollars that it spent. Furthermore, the rest of the season, the future superbowls, final fours, political conventions, concerts, etc. that will be held there.

Not to say that its ok that there are people still without power, mail, schools in New Orleans, but its hard not to realize the benefit of the Superdome being open.

Nye! said...

I am not an expert on the subject, but I believe that the economic literature says very convincingly that public funds for projects such as stadia rarely (if ever) realize a positive return on investment. And I can guarantee that one football game (regardless of what day of the week it's played on) will not bring in $185 M.