Question one
The selected stadium is the MetLife Stadium. The stadium is located in East Rutherford New Jersey and is part of the greater Meadowlands Sports Complex. The stadium was constructed by the Jets and the Giants in a joint venture. The construction of the stadium was exclusively from private funds and amounted to $1.6 billion (Sandler, 2011). This made it the most expensive stadium on the planet at the time of its opening.
Question two
The naming rights of the stadium is part of its folklore. Initially the stadium was known as the New Meadowlands Stadium. However, in the year 2011 MetLife, which is a New York based insurance company, acquired the naming rights. The renaming of the stadium to MetLife was part of a 25 year deal. The naming rights cost MetLife Insurance a total of $400 million for the entire 25 year period (Sandler, 2011). The money from the naming rights was split between the Giants and the Jets who initially financed the building of the stadium through private funding.
Question three
The state of New York does have the jock tax. This is a tax that is usually levied against travelling individuals. Professionals or athletes who visit a given state and earn money within the jurisdiction of that state are taxed according to the provisions of that state. The tax especially targets professional athletes. They usually have public travelling schedules as well as salaries. To this effect it is easy for states to determine the amount of money that they earned while in those specific states and tax them (Ekmekjian, Wilkerson, Bing, 2011). The jock tax leads to a lot of money being collected from professional athletes and other travelling professionals. This is money that can be used in the public funding of stadiums.
Question four
States with professional sports teams tend to benefit heavily from the jock tax. These professional sports teams are likely to attract competition into the state. This means that other teams from other states are likely to come into the state to play these professional teams. This gives the state in question a unique opportunity to collect more money from players from all teams that come into the state. The professional sports teams in the state act as a magnet for other teams and create an avenue through which the state in question can earn more money through the jock tax.
Question five
A negative externality is defined as a cost that is suffered by a third party in a given financial transaction. When it comes to casinos the parties most affected by the negative externalities are the families of the gamblers. When a person goes into debt due to gambling they usually bring this problem to their families (Nower, Caler, 2016). Family members can also lose a lot of money as a result of their gambling habits. This is money that is taken right out of the hands of their families and put into the hands of the casinos. The fact that the family has to suffer because of the transaction between the gambler and the casino is a good example of a negative externality.
Question six
Hosting spring training can be quite advantageous for given towns. There are dedicated fans that are willing to travel extensively to watch their favorite teams play. When a given town hosts spring training then there is likely to be an influx of fans into the town. They are likely to spend money in their capacity as tourists. This revenue helps to boost the economy of the town. The spring training also increases the level of visibility of the town and places it more in the national sporting calendar.
References
Ekmekjian, E. C., Wilkerson, J. C., & Bing, R. W. (2011). The Jock Tax Contest: Professional Athletes Vs. The States - Background And Current Developments. Journal of Applied Business Research (JABR), 20(2). doi:10.19030/jabr.v20i2.2202
Nower, L., & Caler, K. (2016). Addictions: Gambling. Encyclopedia of Social Work. doi:10.1093/acrefore/9780199975839.013.832
Sandler, A. (2011, August 19). MetLife Inks Deal To New Meadowlands Stadium Naming Rights. Retrieved from https://www.businessinsider.com/metlife-meadowlands-stadium-naming-rights-2011-8?IR=T