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Questions and Answers
What is the average capacity of a multi-purpose stadium for baseball?
What is the average capacity of a multi-purpose stadium for baseball?
What was the main characteristic of stadiums built in the US during the 1960s, 1970s, and early 1980s?
What was the main characteristic of stadiums built in the US during the 1960s, 1970s, and early 1980s?
What is the main change that occurred in the early 1990s regarding stadium construction?
What is the main change that occurred in the early 1990s regarding stadium construction?
What is the main problem with multi-purpose, cookie-cutter stadiums?
What is the main problem with multi-purpose, cookie-cutter stadiums?
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What was the trend in football stadium construction in Europe in the 20th century?
What was the trend in football stadium construction in Europe in the 20th century?
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What is the main advantage of single-use stadiums?
What is the main advantage of single-use stadiums?
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How do single-use football stadiums differ from multi-purpose stadiums?
How do single-use football stadiums differ from multi-purpose stadiums?
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What is the main difference between single-use baseball and football stadiums, as described in the text?
What is the main difference between single-use baseball and football stadiums, as described in the text?
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What is the typical impact on attendance after the initial novelty of a new stadium wears off?
What is the typical impact on attendance after the initial novelty of a new stadium wears off?
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What was a significant development in stadium design after the opening of the Astrodome in 1965?
What was a significant development in stadium design after the opening of the Astrodome in 1965?
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How much can ticket prices increase in the first year of a new stadium, according to studies?
How much can ticket prices increase in the first year of a new stadium, according to studies?
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What factor is primarily responsible for the Dallas Cowboys' high market value compared to other NFL teams?
What factor is primarily responsible for the Dallas Cowboys' high market value compared to other NFL teams?
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Which sports typically experience a shorter duration of the honeymoon effect for attendance compared to others?
Which sports typically experience a shorter duration of the honeymoon effect for attendance compared to others?
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What is the correlation between luxury boxes and team revenue in the NFL?
What is the correlation between luxury boxes and team revenue in the NFL?
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What has been the average duration for the honeymoon effect to fade in European football?
What has been the average duration for the honeymoon effect to fade in European football?
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What is one of the characteristics of new stadiums that can influence ticket pricing?
What is one of the characteristics of new stadiums that can influence ticket pricing?
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What does research indicate about the impact of new stadiums on team performance?
What does research indicate about the impact of new stadiums on team performance?
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How is the net present value of a project determined?
How is the net present value of a project determined?
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What factor can make a new stadium more attractive to fans?
What factor can make a new stadium more attractive to fans?
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Under what condition is a project considered profitable?
Under what condition is a project considered profitable?
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What might deter a team owner from replacing an existing stadium?
What might deter a team owner from replacing an existing stadium?
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What does the formula for present value suggest about money received in the future?
What does the formula for present value suggest about money received in the future?
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What is a potential revenue stream of a new stadium?
What is a potential revenue stream of a new stadium?
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What aspect of a stadium typically does not affect its winning percentage according to Quinn et al.?
What aspect of a stadium typically does not affect its winning percentage according to Quinn et al.?
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Which of the following sports pairs LEAST share common stadium requirements?
Which of the following sports pairs LEAST share common stadium requirements?
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What BEST describes the main financial conflict between hockey and basketball teams that share a stadium?
What BEST describes the main financial conflict between hockey and basketball teams that share a stadium?
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What is the main reason why soccer and football don't often share stadiums successfully?
What is the main reason why soccer and football don't often share stadiums successfully?
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What is a common trend for European football teams in stadium construction?
What is a common trend for European football teams in stadium construction?
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Which of the following BEST describes a typical situation faced by NHL teams that share an arena with an NBA team?
Which of the following BEST describes a typical situation faced by NHL teams that share an arena with an NBA team?
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What is a key difference between team owners and city governments regarding stadium facilities?
What is a key difference between team owners and city governments regarding stadium facilities?
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Which of the following factors contributes MOST significantly to the successful coexistence of soccer and football in stadiums?
Which of the following factors contributes MOST significantly to the successful coexistence of soccer and football in stadiums?
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What is a common reason why soccer teams prefer smaller stadiums?
What is a common reason why soccer teams prefer smaller stadiums?
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What is a key consideration for cities when evaluating the benefits of a new stadium or arena?
What is a key consideration for cities when evaluating the benefits of a new stadium or arena?
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What is the main argument against the idea that all spending at a stadium contributes to the local economy?
What is the main argument against the idea that all spending at a stadium contributes to the local economy?
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How can spending at a sporting event crowd out spending by others?
How can spending at a sporting event crowd out spending by others?
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What happens if a city attempts to build a new facility when the economy is already at full employment?
What happens if a city attempts to build a new facility when the economy is already at full employment?
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What is the relationship between government subsidies and the economic benefits of building a new facility?
What is the relationship between government subsidies and the economic benefits of building a new facility?
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Why is the term "new" spending important when discussing the economic benefits of a sports facility?
Why is the term "new" spending important when discussing the economic benefits of a sports facility?
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Which of these is NOT a potential benefit of building a new sports facility?
Which of these is NOT a potential benefit of building a new sports facility?
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What is the most significant factor in determining whether a new sports facility will generate "new" spending?
What is the most significant factor in determining whether a new sports facility will generate "new" spending?
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Study Notes
Teams, Stadiums, and Municipalities
- New stadiums and arenas increase attendance initially.
- The "honeymoon effect" on attendance is temporary.
- Typically, attendance returns to original levels within ten years
- The impact is less pronounced for hockey and basketball than baseball.
- In European football, the effect typically fades after two seasons.
- New stadiums affect ticket prices, emphasizing luxury boxes.
- Until 1965, modern stadiums lacked luxury boxes.
- Luxury boxes and premium seating are now standard.
- NFL teams retain most revenue from luxury boxes.
- The number of luxury boxes generally increases with stadium construction.
- Ticket prices tend to increase 20-30% in the first year of a new stadium, varying by sport.
- The value of a team often positively correlates with luxury box numbers.
- Research suggests a tenuous link between new stadiums and improved team performance.
- Stadium age has no discernible impact on winning percentages in most sports, except baseball.
- No evidence supports teams investing added revenue from new stadiums to improve player acquisition.
- Cities and clubs value a team/stadium/event using net present value, comparing revenue to costs.
- Future value of revenue is calculated discounting future returns.
- A project is profitable if its present value surpasses its costs.
- Revenue of a new stadium generally outpaces the costs to build it, attracting more and wealthier fans.
- Fans benefit from improved seating arrangements.
- Stadiums during the 1960s-80s were often multi-purpose, designed for both football and baseball.
- Larger stadiums, often circular, were a compromise between the needs of both sports.
- Multi-purpose stadium design has largely replaced in the 1990s.
- Stadiums in Europe often have athletics tracks.
- Single-use stadiums cater to the specific needs of one sport.
- The optimal size and shape of a sports stadium depend on the sport for which it is primarily designed.
- The layout and configuration of seats and field sections are often optimized to reduce obstructions of view, and maximize sightlines for the respective sport.
- Hockey and basketball teams sometimes share facilities, typically multipurpose arenas due to similar dimensions.
- NBA teams are often primary tenants, gaining greater financial benefit compared to NHL teams in shared facilities.
- The most recent stadium building boom includes Major League Soccer.
- Soccer and football have largely identical playing dimensions, but seating typically differs
- Several factors contribute to difficulties implementing soccer in large-scale football stadiums or conversely.
- European football stadiums often have smaller dimensions compared to US ones.
- Public subsidies are uncommon for major-league stadiums in Europe.
- Public funding is more common in Europe for stadiums for major events like the Olympics or world games.
- Subsidies for sports facilities have fallen in the US, where private funding has become more common.
- Private sponsors, like SoFi, increasingly finance stadiums instead of government-provided funds.
- Tax increases for facilities are frequently unpopular.
- Tax increment financing involves tax revenues from facilities paying off debt to bondholders to avoid broader tax increases, but the added revenue from the facility's presence is often temporary.
- Cities often provide significant incentives via facilities such as tax breaks to attract new teams/facilities.
- The economic benefits of facilities to cities may be indirect through increased employment and/or tourism.
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Description
Test your knowledge on the characteristics and trends of stadium design, particularly focusing on multi-purpose and single-use stadiums. This quiz covers historical developments, attendance impacts, and unique features from various decades. Challenge yourself to see how well you understand the evolution of sports venue construction.