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As the Portland Trail Blazers and the city of Portland work toward an agreement on renovating the Moda Center, one of the biggest sticking points remains a familiar one: How much economic value does a sports arena actually bring to a city?
The debate has played out for decades. Business leaders argue professional sports venues are an economic lifeline, while many economists contend much of the financial benefit goes to the team rather than taxpayers.
It's a conversation happening across the country as professional sports franchises ask cities to help pay for new arenas and major renovations. Now, Portland is facing the same decision.
Jim Etzel, CEO of Sport Oregon and co-chair of "We Are Rip City," a coalition advocating for the city to finalize negotiations, said failing to modernize the Moda Center could have major consequences.
If the Trail Blazers were to leave, Etzel said, thousands of jobs could be lost, millions of dollars in economic activity would disappear and numerous small businesses could close.
"Look who's signed up for the coalition," Etzel said. "Dominated by small businesses — not just in North and Northeast Portland but throughout. And literally we're getting 50-100 signups a day."
Etzel has also pointed to a city-commissioned study that found the Moda Center generates $600 million in economic output.
Meanwhile, he said the arena's future extends beyond Trail Blazers games.
"I don't want the 2030 Final Four, women's Final Four, that we won five years ago to be the last major event that the building and our city host," Etzel said. "And it will be if we don't modernize."
Not everyone agrees with that argument. Sports economist Victor Matheson questioned why detailed renovation plans have not been made public.
"It's fairly rare that a team actually says we're not gonna show you our plans until the money is committed," Matheson said. "That's crazy."
Matheson argued many of the proposed upgrades would primarily benefit the Trail Blazers rather than the public helping pay for them.
"To basically bully and extort local taxpayers into providing additional amenities for and revenue opportunities for the Trail Blazers," Matheson said. "Public investments in sports facilities have a very poor economic return."
Matheson said Portland is not alone in facing this debate.
Many arenas built during the sports construction boom of the 1990s are reaching the end of their original 30-year leases, he said. As those agreements expire, cities and teams across the country are once again negotiating how to pay for major arena upgrades.
Continue reading...
The debate has played out for decades. Business leaders argue professional sports venues are an economic lifeline, while many economists contend much of the financial benefit goes to the team rather than taxpayers.
It's a conversation happening across the country as professional sports franchises ask cities to help pay for new arenas and major renovations. Now, Portland is facing the same decision.
Jim Etzel, CEO of Sport Oregon and co-chair of "We Are Rip City," a coalition advocating for the city to finalize negotiations, said failing to modernize the Moda Center could have major consequences.
If the Trail Blazers were to leave, Etzel said, thousands of jobs could be lost, millions of dollars in economic activity would disappear and numerous small businesses could close.
"Look who's signed up for the coalition," Etzel said. "Dominated by small businesses — not just in North and Northeast Portland but throughout. And literally we're getting 50-100 signups a day."
Etzel has also pointed to a city-commissioned study that found the Moda Center generates $600 million in economic output.
Meanwhile, he said the arena's future extends beyond Trail Blazers games.
"I don't want the 2030 Final Four, women's Final Four, that we won five years ago to be the last major event that the building and our city host," Etzel said. "And it will be if we don't modernize."
Not everyone agrees with that argument. Sports economist Victor Matheson questioned why detailed renovation plans have not been made public.
"It's fairly rare that a team actually says we're not gonna show you our plans until the money is committed," Matheson said. "That's crazy."
Matheson argued many of the proposed upgrades would primarily benefit the Trail Blazers rather than the public helping pay for them.
"To basically bully and extort local taxpayers into providing additional amenities for and revenue opportunities for the Trail Blazers," Matheson said. "Public investments in sports facilities have a very poor economic return."
Matheson said Portland is not alone in facing this debate.
Many arenas built during the sports construction boom of the 1990s are reaching the end of their original 30-year leases, he said. As those agreements expire, cities and teams across the country are once again negotiating how to pay for major arena upgrades.
Continue reading...
