1 page economic writing assignment

Economics of Sport & Entertainment (ESM-4020) Keiser University Prof. Harmon – Summer 2016 Page 2

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:

· How should the stadium / arena be financed?

· What is your justification?

· Why did you choose this option over other options?

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

· What method(s) should be used?

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

· What method(s) should be used?

· How should stadium / arena revenues be distributed?

· Who will you sell naming rights to?

· Why?

· Who should get revenue from naming rights?

· How long and for how much?

· Will there be any “sub-naming” rights?

· Of What?

· To Who?

· For how much and how long?

· Who keeps revenue?

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

· Calculate 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.

This assignment is due on Friday, August 12th by 11:59 PM EST

# # #

Memo

To: City Council

Diamond Financial Management

From:

CC: J.C. Harmon

Date: 8/8/2016

Re: Stadium Financing Mix Proposal