Please put your responses in memo format. A sample format is included below. 1-1 1/2 page: just 2 hours

Economics Writing Assignment

Stadium Financing Public Private Mix

You have been asked by a partner in your financial firm to come up with a plan to build public support for a newly proposed arena and / or stadium.  The partner wants you to especially focus on the financial side of the issue because that is where the most “push back” is coming from. (You can choose a stadium OR an arena.)

The partner wants you to address the following points specifically:

ØHow should the stadium / arena be financed?

o  What is your justification?

o  Why did you choose this option over other options?

ØHow much should public pay, if any? (use percentage and a whole number)

o  What method(s) should be used?

ØHow much should private owner / operator pay, if any? (use percentage and a whole number)

o  What method(s) should be used?

ØHow should stadium / arena revenues be distributed?

ØWho will you sell naming rights to?

o  Why? 

o  Who should get revenue from naming rights?

o  How long and for how much?

ØWill there be any “sub-naming” rights? 

o  Of What?

o  To Who?

o  For how much and how long? 

o  Who keeps revenue?

He also says that the state is considering a jock tax on players who play at the facility.

ØCalculate the jock tax on an NBA player coming into play a game who is earning $5M per season and a local tax rate of 7%.

Please put your responses in memo format.  A sample format is included below.

just one page