Stadium Design: History and Impact

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Questions and Answers

Why did the construction of multi-purpose stadiums in the 1960s, 1970s, and early 1980s result in a compromise in terms of seating capacity for both baseball and football?

The stadiums were designed to be flexible and accommodate different seating configurations.

The shape of the stadiums was designed to be circular, which was not ideal for either baseball or football. (correct)

The architects were trying to incorporate the ideal seating capacity for both sports.

The average capacity for football was larger than for baseball, leading to a compromise.

What was the main reason for shifting towards single-use stadiums for baseball and football in the 1990s?

To satisfy the demands of the teams and fans for specific seating arrangements and amenities.

To increase seating capacity for football games.

To provide better sightlines and a more immersive experience for fans. (correct)

To reduce construction costs by specializing in designing and building one sport at a time.

What impact did the shift to single-use stadiums have on the seating capacity of baseball and football stadiums?

Both baseball and football stadiums saw a reduction in seating capacity.

Both baseball and football stadiums experienced significant increases in seating capacity.

Baseball stadiums decreased in capacity while football stadiums increased in capacity. (correct)

The seating capacity for both sports remained unchanged, but the layout was improved.

How does the seating arrangement in football-specific stadiums differ from those of multi-purpose stadiums?

Football-specific stadiums have a larger proportion of seating near the goal lines and fewer seats in the end zone and corners. (B) Signup and view all the answers

What does the term "cookie-cutter" refer to in the context of stadiums?

Stadiums with a standardized design and shape. (D) Signup and view all the answers

How does the seating arrangement in a football-specific stadium impact the fan experience?

It allows for a more intimate and immersive experience as fans are closer to the action. (C) Signup and view all the answers

Which of the following is a key characteristic of football stadiums with an athletics track?

They are more versatile and can host other events besides football games. (A) Signup and view all the answers

Why were stadiums built specifically for football considered an improvement over multi-purpose stadiums?

They provided a specific design that catered to the optimal viewing experience for football. (A) Signup and view all the answers

What is the average duration of the honeymoon effect on attendance for European football stadiums?

Two seasons (B) Signup and view all the answers

Which sport experiences the longest persistence of the honeymoon effect on attendance after a new facility is built?

Baseball (D) Signup and view all the answers

What impact do new stadiums generally have on ticket prices in the first year?

Increase by 20-30% (A) Signup and view all the answers

What type of seating has become a crucial aspect of contemporary sports facilities since the opening of the Astrodome in 1965?

Luxury boxes (B) Signup and view all the answers

How do NFL teams generally handle revenue from luxury boxes?

They retain most of the revenue (B) Signup and view all the answers

As of 2020, which NFL team had the most luxury boxes?

Dallas Cowboys (B) Signup and view all the answers

What is a common effect observed after the initial novelty of a new stadium wears off?

Attendance typically decreases back to original levels (A) Signup and view all the answers

Which team was valued at $1.3 billion less than the New England Patriots in 2020?

Las Vegas Raiders (B) Signup and view all the answers

What factor influences the winning percentage in baseball stadiums according to the research?

Age of the stadium (A) Signup and view all the answers

How is the present value of a revenue stream calculated?

By summing the discounted cash flows over the years (C) Signup and view all the answers

When is a project considered profitable?

When the costs are less than the present value (B) Signup and view all the answers

Which factor is suggested to not impact teams investing in better players after moving to new stadiums?

Increased revenues from new fans (D) Signup and view all the answers

What is the future value of $1 in 't' years if the interest rate is 'r'?

$1(1 + r)^t (C) Signup and view all the answers

What must team owners compare when deciding on a new stadium?

Net present value of current stadium against hypothetical new stadium (D) Signup and view all the answers

What additional costs do team owners face with a new stadium?

Cost of new construction (B) Signup and view all the answers

What does the term 'net present value' refer to in the context of stadium financing?

The difference between revenue and costs adjusted for time (A) Signup and view all the answers

What is a potential indirect benefit of a stadium or arena not turning a profit?

Higher incomes or employment elsewhere in the community (D) Signup and view all the answers

What is the significance of 'new spending' in relation to a sports facility?

It indicates spending that wouldn't have happened without the facility (C) Signup and view all the answers

What effect does a sports facility have if the local economy is already at full employment?

It leads to a crowding out of other construction projects (D) Signup and view all the answers

Which of the following statements regarding the financial gains from having a team is true?

Gains from having a team often arise from indirect spending (A) Signup and view all the answers

What can be a potential negative impact of higher taxes associated with stadium construction?

Decreased private spending in the local economy (D) Signup and view all the answers

What is a critical consideration when evaluating the benefits of sports facilities?

The intangible effects on quality of life in the city (B) Signup and view all the answers

How can spending by fans at a sports event negatively affect others?

It may limit spending opportunities for people who would rather spend elsewhere (B) Signup and view all the answers

What is a potential issue with the financial gains from building a new sports facility?

They can be temporary and reliant on ongoing events (A) Signup and view all the answers

Why do government entities often have a different perspective than team owners regarding sports facilities?

Governments consider the broader value of the facility. (B) Signup and view all the answers

What is the main characteristic that allows basketball and hockey teams to share facilities?

Basketball courts and hockey rinks are similar in size and shape. (C) Signup and view all the answers

What significant disadvantage do hockey teams experience as secondary tenants in arenas shared with NBA teams?

They typically face worse financial arrangements. (A) Signup and view all the answers

What key issue do soccer fans have with sharing stadiums with football teams?

The presence of football markings on the soccer field. (A) Signup and view all the answers

Which of the following teams is NOT mentioned as being a primary tenant of their facilities in the NHL?

Chicago Blackhawks (A) Signup and view all the answers

How do the ideal seating arrangements differ for soccer compared to football in larger stadiums?

There are nearly identical ideal seats for both sports. (B) Signup and view all the answers

What recent trend has characterized stadium building in the United States?

A major increase in Major League Soccer stadium construction. (C) Signup and view all the answers

What is a common issue faced by soccer teams sharing facilities with football teams?

Field damage from football games. (B) Signup and view all the answers

Study Notes

Teams, Stadiums and Municipalities

New stadiums and arenas lead to increased attendance in the years following construction.
The "honeymoon effect" of a new facility on attendance is temporary.
All else being equal, attendance typically falls back to original levels within about ten years.
The honeymoon effect is shorter for hockey and basketball compared to baseball.
In European football, the effect typically fades after two seasons.
New stadiums affect ticket prices, particularly luxury boxes.
Until the Astrodome in Houston opened in 1965, luxury boxes were uncommon.
Since then, luxury boxes and premium seating have become standard features.
NFL teams mostly retain their revenue from luxury boxes.
Studies show a 20-30% increase in ticket prices in the first year of a new stadium.
Revenue from luxury boxes increases after a stadium is built.
The market values of teams with more luxury boxes are higher.
For example, the Dallas Cowboys in 2020 had a market value of $5.7 billion, $1.3 billion more than the New England Patriots.
Team owners claim that increased attendance and revenue will allow them to build better teams.
Research suggests the link between new stadiums and better teams is weak.
Stadium age does not impact winning percentages; except in baseball, where effect is small.
There's no proof teams in new stadiums spend extra revenue on better players
Cities and clubs can determine the worth of teams, stadiums, or events by calculating net present values (difference between current value of revenue and cost).
The present value of a revenue stream is calculated as V = R1 / (1+r) + R2 / (1+r)^2 +...+ RT / (1+r)^T
Where R is the annual received revenue and r is the periodic interest rate.
V represents the current value of future returns and can be used to determine whether a project is profitable (V > C, where c is the cost of building the stadium).
New stadium projects will only be undertaken if their value exceeds the cost.
Fans benefit from better seating arrangements.
Multi-purpose stadiums were built in the U.S. in the 1960s, 1970s and 1980's, specifically designed to host both football and baseball.
Baseball average stadium capacity (1960s-1980s) was 52,659 and football average capacity was 60,380.
New baseball-only stadiums in the 1990's typically are smaller than multi-purpose stadiums.
Also, football only stadiums are usually larger than multi purpose stadiums.
Circular stadium designs were attempted to meet needs of both sports without much success.
Stadiums in Europe often include athletics track which is now uncommon.
In baseball stadiums most seats typically are closer to home plate in the infield.
Hockey and basketball teams often share facilities because of similar court sizes.
10 pairs of NBA/NHL teams share arenas.
No MLB/NFL teams share arenas.
Conflict between hockey and basketball teams is mainly financial.
NBA teams usually get more financial benefits from shared arenas.
Hockey teams often get less benefits financially.
Many soccer fans dislike football markings on soccer fields.
European football stadiums are often smaller.
Governments often subsidize facility construction because of the beneficial effect on the community.
These effects may be direct (increased employment in construction) or indirect (increased business activity from fans).
Direct benefits from constructing new facilities may include increased ticket prices.
Overall, increased revenue may come from new facilities, but expenses may increase as well.
There is an important consideration that new facilities may just shift revenue distribution in the city that is hosting the event.
Governments often subsidize new facilities to increase local employment and create a more attractive city to live and work in.
However, funding facilities involves a trade-off between efficiency and equity, as taxes can impact the ability of citizens to spend their money.
Cities often find it beneficial to fund the facility, but may struggle due to the potential negative effect on surrounding cities.
Major sports facilities often generate higher costs of land in urban centers.
Sports facilities often choose locations outside urban centers due to high land costs.
Public subsidies for sports facilities are less common in Europe compared to the United States.
In Europe, stadiums are usually publicly funded to host large events or mega events.
In Europe, the relationship between the local clubs, and the host cities is tightly knit, which provides less bargaining power for club owners when considering relocation and less incentive to obtain subsidies for stadium construction.
In North America, franchises operate within closed leagues with a fixed number of teams.
This monopolistic structure gives franchise owners substantial bargaining power to relocate their teams if cities are unwilling to provide subsidies.
In Europe, sports leagues use promotion and relegation, where clubs can be promoted to higher leagues based on season performance.
This structure helps balance financial concerns and prevents a few large cities from dominating.
In Europe, stadiums tend to be publicly funded for special event hosting like Olympics or world cup, but cities rarely fund facility construction.
In North America, stadiums are usually privately funded without mega-event stipulations.
The most expensive stadiums worldwide include SoFi stadium in Los Angeles, Allegiant stadium in Las Vegas, and U.S. Bank stadium in Minneapolis.
The cost and location factors for stadium construction can be expensive.
Most expenses related to stadium construction come from the price of land (location).
Taxes are often imposed on residents to fund new facilities.
Sometimes these taxes are imposed on goods or services used by visitors.
However, residents are often unhappy with this as it burdens people who aren't directly connected with the team.
Government may resort to other tactics to raise money for the stadium such as tax increment financing.
This approach has a specific goal of using a new stadium to generate new revenues, that can be used to pay for its construction.
Tax breaks or subsidies are not uncommon to further assist team owners.
Some economists believe governments should depend on user fees for facility construction.
There are benefits to financing through user fees as it directly links fees to use of the facility.
Taxes collected should be targeted towards providing services or goods directly to the citizens, rather than on an event or facility.
Municipal bonds offer lower interest rates, allowing cities to fund stadiums at a lower cost.
This funding mechanism often involves future generations having to pay for a facility that was constructed in the past but not used in tandem with existing financial infrastructure.

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Explore the evolution of stadium design from multi-purpose structures in the mid-20th century to single-use facilities in the 1990s. This quiz delves into the implications for seating capacity, fan experiences, and key characteristics that define modern stadiums in football and baseball.