BU 502: Nfl's Alternatives To Public Funding

NFL’s Alternatives to Public Funding
Javier Bes Comeras
MBA Student
Southern States University
Newport Beach, CA, United States of America
BU 502 – Applied Business Research
December 15, 2012

Contents
Abstract 4
Introduction 5
Analysis 6
Use public funding 6
Stay at the old Texas Stadium 9
Renovate the Texas Stadium 10
Use private funding 10
Relocate the team to another city 12
Action Plan 13
Short term recommendations 13
Long term recommendations 13
Risks 13
Short term recommendations 14
Long term recommendations 14
Alternatives 14
Short term recommendations 14
Long term recommendations 15
Action Plan, Risks and Alternatives Summary Table 15
Recommendation 15
Action Plan 15
Risks 15
Alternatives 15
The options include private and public funding, renovation of the old stadium or relocation the team to another city. Private funding came on top due to its positive economical and social impact; no tax raises and the possibility to take advantage of a new brand facility that will match the teams success. Introduction “The construction cost of new stadiums completed between 1999 and 2003 for professional teams in all sports was estimated at $13.5 billion, with tax payers paying more than 67% of that cost” (Goodman, 2002)
It is a well-known fact that public funds are used to help professional sport teams build their stadiums arguing that all the costs incurred in the new construction will be counteracted with regular season games or mega sporting events such as Super Bowl or World Series. This paper is analyzing the particular case of the new Dallas Cowboys football stadium .There were five available options.
The Dallas Cowboys
The main concern regarding this option was that the team was losing money. Mr. Jones knew that the stadium was filling every week and the 65,846 seats that the Texas Stadium held could be increased largely and would still fill up every weekend. The total amount of revenues per team between 1995 and 2002 ranks the Dallas Cowboys #1 or #2 every year only surpassed by the Washington Redskins (Foster & Hoyt, 2003). A bigger stadium would create even bigger revenues. This option would not be the best one if I look at it from the social standpoint. Fans think the team needs a new facility according to its success. “Don’t y’all have anything else to do? Dallas needs this stadium to keep up with the other competitive markets out there. Where’s your civc [sic] pride? I’m for this stadium to get Dallas back on the map!” (Foster & Hoyt,