Impact of Professional Sports Franchises on the Local Community - Research Paper Example

Impact of Professional Sports Franchises on the Local Community Introduction A sport can be defined as a physical activity that is carried out under some stipulated rules and regulations. It can either be carried out in the water, in space and more commonly on land. Sports are very essential in our day to day life and their popularity is increasing as people understand their essence especially through the mass media. Increased importance which is attached to leisure is also a key contributor to the popularity. There are various sports in which people can engage in depending on their interests and capabilities with some of them being just for fun and fitness while others are a source of livelihood as they are taken as careers. Some of the sports include basketball, soccer, baseball, handball, badminton, athletics, football, hockey and swimming among others. Professional sports entail the act of engaging in sporting activities where payment is made for the performance as opposed to engaging in sports just for enjoyment. Professional sports franchises can involves having teams in different leagues for instance the National Football League (NFL) , the National Basketball Association(NBA), the Major League Baseball(MLB) and the National Hockey League (NHL) among others (Internal revenue service 15). Different groups of individuals form some sports groups which later grow into big teams and they undergo some form of rigorous training to equip them with the relevant skills and knowledge in regard to a particular sport after which they engage in professional sports for payment. The professional sports necessitate a lot of coordination and effective management for success to be achieved. Professional sports and facilities associated with them have been considered as a source of economic development especially in most states in America. It is an aspect linked with progress and prosperity and it shows that a city is well-off and can, therefore, facilitate trade and commerce and also promote growth of culture and hence each city would strive to maintain as many professional sports franchises as possible as they act as a source of recognition. Professional sports teams are usually owned by various individuals, organizations and partnerships and in most cases there exist a partner who is well known to the public for easy identification and affiliation by the local communities. This piece of work looks at the impact of professional sports franchises on the local community with much emphasis being given to the economic effects and the psychological effects of a winning professional sports team on a local community. The Rise of Professional Sports In order to understand the aspect of professional sports and the effects they have on the local communities, it is appropriate to grasp how the professional sports came into being. From the beginning, people have always sought to have and enjoy leisure time, which in most cases was not possible. This urge built up and people were able to form some organized sports in the mid nineteenth century. Before then, people especially in America had some forms of skills but they had not been put into practice and they were not standardized. It is the increased interests and the urge to make the recreational activities better and enjoyable that led to the development of various rules and regulations to govern the activities such that they became more organized. The organized groups developed into more established and well managed teams with the members being more serious. The aspect of competition also came up where different teams could compete and have some rewards for the winning teams. The teams got skills through training and could now compete on national and international levels. The games started with simple aspects like curling, bowling after which professional sports like baseball, basketball, hockey and football came about. Just like any other aspect, the field of sport has grown from very humble beginnings. From very simple groups of social interactions to more organized activities and sports and finally to more specialized and sophisticates professional sports franchises that are very popular in today’s world of entertainment and sports in particular (Gorn and Goldstein 245). The Economic Effects of Professional Sports on Local Community According to Reilly and Schweihs (254), professional sports franchises are very popular in the United States of America and other developed nations and have grown into big business with the major professional sports commanding a lot of cash in various contracts in which they are engaged. The sports franchises also attract a lot of people in terms of attendance to events and also psychological support of the local and international fans. There are numerous instances where different professional sports teams and leagues have fallen in financial crisis, which affect their activities negatively to a point of closing down. For example, the National Basketball Association was stopped in 1998, the Major League Soccer was almost locked out in 2002 and the National Hockey League has been known to suffer a lot in terms of financial sources. Television contracts are a major source of income and sustainability of the professional sports and they help to keep them afloat. Revenue from the sale of tickets also acts as a major contributor for the success of the professional sports undertakings. The public contribution is, however, the major source of support to the professional sports and their facilities through the various activities in which the local communities support the professional sports franchises. This is an aspect that most economists base their arguments on. Some refute that professional sports are a source of economic growth since in as much as they have some positive impact, they also demand public assistance and hence it’s a form of exchange rather than a one side directed benefit with the professional sports seeming to have more dependence on the citizens than the citizens do. Coates and Humphreys (1) assert that there exists contrasting views between the local political and community experts and the owners of various professional sports and the economists. Experts argue that professional sports and facilities are very crucial in the local community development while the economists argue there are no economic benefits associated with professional sports and facilities. The experts do not give measurable attributes to their arguments but the economists support their argument with data and facts, which show the professional sports only shift the economic benefits from one part of the economy to the other but actually don’t lead to any notable economic development. Professional sports are associated with various impacts in regard to the local community for instance psychological and economic impacts. The economic impact of various professional sports on the local community can be gauged on the effects made to the local economies. This is an aspect that has raised a lot of concern in the recent years mainly because of the increase in the number of sports facilities like stadiums which are purely public funded. There are, for instance, approximately fifty stadiums and arena that have been constructed for professional sports like baseball, football and basketball since the period towards the end of the twentieth century and many others are in the process of construction. The sports facilities often use a lot of funds from the public and governments with the justification they contribute a lot to the various local communities for example in terms of provision of employment opportunities. The teams and other sports facilities like the stadiums are also deemed to contribute much to the local societies through other events that are held there, apart from the sports activities like meetings and other social gatherings. The issue of the economic impact associated with professional sports is controversial and is highly debated with major concerns being whether the professional sports really boost local economies from where they operate or not. The issue raises more questions particularly in well established areas like the urban sectors as the benefits become questionable since no notable changes can be identified like improvements in infrastructure because they are already well established. Nonetheless, those concerned (the owners) still claim that there are various economic benefits accrued to the professional sports although no clearly stipulated evidence is provided. This research will however help us have an in depth understanding of this issue and finally come to a better conclusion based on evidence that can be derived from research that has already been carried out (Walker and Enz 12). Professional sports have become a business that many people would desire to be in due to the many benefits that are accrued to it for instance the very attractive salaries entitled to the team members and those involved in sports management, rising costs of tickets which in a way contribute a lot to the sports field, and also the income got from the different arenas and features in the sports facilities for instance the swimming pools, and hotels and restaurants all which contribute to the economic development and improvement of the local community’s lives for instance through the availability and access to various services and also the employment chances that are offered to them in the various ventures for instance as sales personnel and staff in the restaurants, tax revenues generated from the services and also the creation of a good community image. Professional sports and the various facilities associated with them are a source of a city’s identity and in a way it shows that the particular city is in a good position to facilitate various activities for instance trade and commerce and other developments and other nations would be willing to be associated with it for instance in terms of business cooperation and other unions. It is also viewed as a sign that the particular city is undertaking some other forms of developments and it is not in a stagnation mode. The ability to manage the sports activities well and to achieve success is a positive move and is considered to be an added advantage making the city and the nation at large to secure a good position in the world’s competitive economy an aspect that is very essential if progress and sustainability are to be achieved. The professional sports fall under the entertainment sector and therefore touch more of the social aspects of the local community as compared to the economic aspects and the local communities attach much to them as they in a way influence their way of living and their perceptions towards life. Other economic impacts of the professional sports and their facilities include the spending that go hand in hand with the participation of supporters and fans and also by the players to various events held in the community. There is also substantial amount of money that is that is generated from the various businesses that are carried out in the various sports events. The presence of the teams and stadiums attracts numerous people around the area where they will contribute to the economy through spending money on the various products and services for instance in the hotels and restaurants in terms of food and accommodation. Most of the economic benefits are indirect but they in one way or the other contribute positively to the economy for instance through improved infrastructure and modernizations of the urban regions. The good image created by the professional sports act as an asset to the particular region as it is a source of tourism attraction and other businesses that view this as an aspect that could lead to prosperity. Economic impact is felt differently on different sectors of the economy and different occupations with some being affected positively and others negatively hence pulling down the overall economic benefits accrued to the professional sports. Most of the economic benefits are not usually immediate but they are gradually experienced especially after a sports event is held in a particular city where there is exposure which lead to other benefits like goodwill towards the city and tourism which contributes a lot to the city’s and the overall nation’s economy. Some of the immediate notable benefits include the spending of the various people who visit the sports venues especially when big matches are held including accommodation, food and drinks among other services that all amount to a certain degree of the economic growth. Another economic impact though negative is the availability of a number of hidden costs that are associated with the professional sports for example renovation of infrastructure to facilitate new developments and advancement in technology related to sports activities which in most cases is a burden to the public sector as it is supposed to offer financial or monetary support. Other expenses could come in the form of provision of services at the events, relocation of facilities where need arises for change of the facilities location, renovation of facilities that are deemed to be either too old to cater for the current sports needs for instance the stadiums and equipments among other costs. There are also costs that are associated with the destruction of the old structures and facilities which are considered to be no longer useful in terms of equipments and personnel requires to do the demolition. There is the problem of the revenue or income got from professional sports leaking from the local economy to other areas or nations as it is the case in other industries as the aspect of totally retaining the income to the local community seems impossible. The sport industry is adversely affected by the leakage issue and very little is spent locally and so does not benefit the local community much. Most of the income usually end up with the players, the management team and the owners of the franchises and do not circulate to the local economy mainly because the players tend to utilize much of it outside the local community as opposed to within the society hence reducing the economic benefits. The economics of sports have developed to a great extent but despite the developments, it is quite clear from different research that much of the focus has been on the economics of those that are directly involved for instance the professional sports members as opposed to the local economy (Coakley and Dunning 167). Although provision of employment opportunities is generally a positive attribute the jobs created by the professional sports are seasonal and not well paying and hence they do not contribute much to the economy. The nature of the jobs being seasonal is a negative aspects towards the involved individuals in terms of their health as most of the become very stressed after their term ends with the termination of the sports events with some of them having difficulties in adapting to the change from employment to unemployment. It is also argued that the professional sports play a role in reducing the income level in regard to the per capita income of the different cities. This can be attributed to the fact that the establishment and maintenance of the professional sports and facilities involves a lot of public funding which in a way affects the ability of the local community to participate in other productive sectors of the economy like improving the security systems and other important aspects that touch the community like the education and health facilities. Household spending is another aspect that does not justify the professional sports to be a source of economic development. It entails the direct spending associated with tickets for various sports events and indirect expenses like those spent on food which can be equated to other forms of ordinary leisure like attending clubs, paying for the tickets and having meals. This therefore shows that people do not necessarily increase their spending but rather change their activities and so the economy remains the same as the sports act as a tool of redirecting the residents’ spending from one area of the economy to the other but the general economy of the particular nation just remain the same and the sports experts and owners just live on the idea that the professional sports contribute much to the local economy whereas the practical part of it is not very evident (Coates and Humphreys 5). It is however argued that it is very difficult to ascertain the benefits claimed to be associated with the professional sports franchises in terms of the local economy growth or in helping the local communities. Some experts are even bold enough to say that there are little or no economic benefits of the sports although they are very essential when it comes to cultural influence of the local communities. The issue of ascertaining the impacts of the professional sports franchises on local communities has created a lot of heated debate with many cities being unable to decide whether they should recruit professional teams for the sake of stimulating the economy of the regions. The problem also comes in since the coordination of the professional sports especially the construction of the stadiums and other facilities is damn expensive bringing the question of their economic benefits. All in all, the facilities are deemed to be helpful once they are established as the cost of maintaining them is not very high as compared to that of initial setting up. The non economic or non monetary values and benefits associated with the professional sports should however be a consideration in deciding whether to establish and maintain the professional sports because in however much they are immeasurable they contribute much to the local community and should therefore not be overlooked. It is nonetheless evident that the professional sports franchises are associated with both positive and negative economic impacts on the local economy and proper strategies for instance those associated with the locations to set up the sports facilities and their status should therefore be set to ensure that the various costs associated with the franchises and the various facilities for instance in regard to relocation and renovation are always kept to a minimum under all circumstances so that the benefits can be kept at a better level. The Psychological Effects of Professional Sports On Local Community Apart from the economic impacts, professional sports also have various psychological impacts to those involved in the teams and the management, the fans and supporters, as well as the local communities that are in one way or the other affected by the professional sports. The sports for instance have a great influence on people’s lives due to the affiliation or attachments they have with the particular teams. Different teams that exist in different professional sports usually play for their regions or cities as well as for the residents or local communities that associate very much with the franchises and their undertakings. The professional sports define the cities and the residents involved for examples the Red Sox in Boston, the Yankees in the New York City and the Steelers of Pittsburgh which bring about the aspect of recognition where the mention of the leagues immediately relates to the particular cities. The teams are usually supported by a very wide group of supporters from both local communities and also international who are psychologically affected by their performance for instance their winning or defeat in various competitions. Different professional sports franchises usually represent the regions in which the teams play and residents involved. The supporters of various teams are usually so much affiliated to the teams that they are known by the teams they support. In case a team loses, the supporters feel so much affected that even instances of suicide have been experienced where an individual cannot actually handle the loss or the agony of defeat especially bearing the fact that his or her team lost to another one. Instances of sports based enmity are very high among people that support different professional sports franchises with extreme enmity leading to cases of murder out of bitterness of defeat. The positive aspect of the affiliation to the professional teams is that it brings a large group of people together as they have the feeling that they have a special thing in common. There also exists rivalry among various teams which in a way lead to stiff competition and in the long run result in better performances of the teams as each try to be the best to contribute pride to the players, the fans, the cities and the local communities at large (Bruce and Whitehead 49). Although there exist a lot of doubts when it comes to the economic benefits of the professional sports franchises it is quite evident that the professional sports are of great influence to the local communities in terms of cultural, social and psychological aspects. The benefits are considered to be of great importance such that the economic benefits can be overshadowed at their expense as they are deemed to affect the lives of the local community more directly in the way they live. The professional sports franchises contribute much to the local communities although there are benefits that are not quantifiable for instance they raise the level of self esteem of the people as they feel good to be affiliated to well performing teams and they consider themselves as conquers who have all the rights to be happy and celebrate, it provides the people with a sense of identity and belonging where people live in accordance to how the teams perform for example their successes and failures. Professional sports franchises also facilitate communal experience and cultural and social development to the residents and the entire society. The professional teams are also a source of pride to the world wide supporters and more so to the local communities who feel well represented and delight in the good performances of the teams they support. The social and cultural effects can be felt in the manner the stadiums and the franchises define the cultural aspects of a given region for instance the materials and services provided in institutions like museums and archives, art and cultural centers, universities /colleges and their libraries, hospitals among others. All these are a way of promoting culture and they are a source of pride to the local communities. There is also increased local community visibility due to the new image that is created by the professional sports as the community is now associated with the professional sports. This not only promotes the region’s economy by causing development in the vicinity of the various sports facilities but also promote the social well being of the people around through the enjoyment and entertainment got as well as the satisfaction through the sports and sports facilities available to them. The professional sports are deemed to affect the local community productivity both positively and negatively through affecting them psychologically. A positive contribution is for example where a team wins and people are overjoyed and filled with vigor in different aspects including work and hence they become very productive. This is accrued to the emotional satisfaction that results to the psychological well being of the individuals as results of being identified with a successful team. Individuals are very proud to be associated with prosperous leagues. Douvis (22) asserts that professional sports are responsible for the ignition of passion among individuals and groups, provision of a common focus and also the ability to allow a very large number of people that are very far separated by distance to celebrate together of their achievements through the professional sports franchises and leagues that they associate with. Community unity and civic pride are very important non economic impacts of the professional sports to the people. A negative psychological impact of the professional sports is that the professional games could also result to a lot of time wastage among the fans as they take working hours to discuss the outcomes of various matches and planning how to celebrate good performance. Another negative aspect could be when some teams end up losing in the competitions and the supports are very discouraged and they may not be productive even in their day to day activities. This is however an aspect that is experienced differently by different individuals depending on their ability to handle various situations and should therefore not be taken as a general effect. There are also other psychologically negative attributes associated with the stadiums and other sports facilities. This is for example for the people who live near these structures since they are very disturbed by the activities going on there for instance in terms of noise that interrupts their comfort, additional traffic that is caused by a lot of people moving to the venues causing congestion. There is also some form of pollution in form of garbage that is poorly disposed and noise produced by the people the various sports equipments and also the vehicles. Although these people consider themselves advantaged because of the proximity, they also suffer from the above named effects (McDonough 67). A sport in general is an aspect that is associated with cultural diffusion which entails the spread of the cultural aspects of a community to another. This so because it can be seen in various American professional sports which have adopted the cultural aspects of the sports that existed previously form distinct nations most especially those related to the European societies. Some of the notable examples are the baseball which is played in England under the influence of the English game of rounders and the American football played in Europe and was influenced by the European game of rugby. Sports in general and the professional sports in particular have the ability to influence people’s lives in regard to the customs and traditions, interpersonal relations, language, and fashion among other social and cultural related aspects. To the extreme level, sports are known to impact on the quality of life of individuals in terms of what they feel about themselves in regard to the sports and how they gauge they cities according to the teams performances. It is common to see people behave in a certain manner for instance imitating particular members of the teams they associate themselves with for example in terms of dressing code, hair styles, walking styles among other aspects (Delaney and Madigan 226). The psychological impacts of the professional sports seem to be more evident and immediate as compared to the economic effects associated with the professional sports. There is therefore a need to the understanding of the psychological impacts of the professional sports towards the local communities in matters like the development of the sports facilities. It is very essential to put the non economic factors in mind as they have direct impacts to the societies and they seem to contribute much to the local communities in terms of the non tangible benefits associated with emotional satisfaction which is essential to the growth and progress of any given individual. The identity and belonging given to the people by the professional sports is of great essence as it helps the individuals to have something to long and anticipate for. It is also a way through which people are kept up to date on matters of entertainment and sports in particular. Conclusion It is evident that sports are popular and have grown into a big business. Sports have become part of life in many nations for instance the United States where individuals come to love sports and participate in various competitions from a very young age and by the time they reach adulthood they are very competent and can participate and enjoy professional sports like baseball and football. The national football league is, however, in the lead among the professional sports in regard to popularity and support. Professional sports have various economic and psychological effects to both the local communities and also the international fans and supporters. The economic impacts of the professional sports on the local communities can for example be ascertained through looking into the economic developments associated with the sports for instance construction of stadiums and other facilities, which in some instances necessitate the support of the public but also provide them with some benefits however little. The monetary and nonmonetary contribution the professional sports and the facilities make to the local communities cannot be overlooked or underemphasized as they are essential to a certain degree especially those that affect the people psychologically. From the research, we can conclude that the professional sports franchises affect the local communities differently and the aspect of public contribution has received heated debate making the sports seem to be an added burden to the local communities where they have to support the teams and the facilities. All in all, there are great benefits that go hand in hand with the professional sports and the professional sports should under no circumstance be eliminated on the basis of public contribution since they too benefit the community in various aspects hence the concept of symbiotic relationship where both the local community and the professional sports benefit. We can also say the interest people have towards the professional sports is likely to keep their urge to have the privilege to host and support the professional sports and so the debate on public contribution towards the sports and facilities is likely to go on for a long time. Professional sports should be encouraged since despite having some negative impacts they also contribute to the well being of the local community through entertainment as well as emotional satisfaction. For further research, it is advisable that some facts and statistical information be gathered in regard to the economic contribution of the professional sports towards the local communities so as to clear the doubts that exist on whether the professional sports do contribute economically to the local community or not. Works Cited Bruce, Johnson and Whitehead, John. Value of Public Goods from Sports Stadiums: The CVM Approach. Contemporary Economic Policy. 18(1): 48-58 (2000). Coates, Dennis and Humphreys, Brad. Professional Sports Facilities, Franchises and Urban Economic Development. Public Finance and Management 3, no. 3 (2003): 1–23. 25. Coakley, Jay and Dunning, Eric. Handbook of Sports Studies. London: SAGE, 2000. Print Delaney, Tim and Madigan. The Sociology of Sports: An introduction. USA: McFarland, 2009. Print Douvis, Ioannis. Perceived Impacts of Sports. Sports Management International Journal vol. 4 No. 2, (2008). Gorn, Elliot and Goldstein, Warren. A brief History of American Sports. Chicago: University of Illinois Press, 2004. Print Internal Revenue Service. “Market Segment Specialization Program: Sports Franchises.” Irs, N.d 3132-005(8-99) TPDS No. 839831. McDonough, Kelvin. Do Professional Sports Franchises and New Sports Facilitates have a Positive Impact on the Local Economy? New Jersey: Seton Hall University. 2005. Reilly, Robert and Schweihs. The Handbook of Business Valuation and Intellectual Property Analysis. New York: McGraw-Hill Professional, 2004. Walker, Sharianne and Enz, Michael. The Impact of Professional Sports on The local Economy. Western New England Law Review Vol. 29: 149. (2006). Read More