Economics Writing Assignment

| August 13, 2016

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


#          #          #




To:        City Council


CC:       J.C. Harmon

Date:     8/13/2016

Re:        Stadium Financing Mix Proposal



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