Fiscal Management in Sport Administration Site Selection and Economic Impact Project Instructions For this weeks Assignment, you work with a group to analyze the economic imp

KIN 602: Fiscal Management in Sport Administration

Week 4

Site Selection and Economic Impact Project Instructions For this week’s Assignment, you work with a group to analyze the economic impact of a potential site for a university sport stadium. This assignment comprises the following tasks: Week 1: Familiarize yourself with these Site Selection and Economic Impact Project Instructions and the Group Member Evaluation Form handout. Week 2: Select a group leader. The group leaders should be chosen by the group and will facilitate completion of the project by taking questions to the faculty and monitoring and facilitating completion of the project. Familiarize yourself with the Group Member Evaluation Form handout and the evaluation expectations. You will be evaluating your fellow group members for their participation in the Site Selection and Economic Impact Project in Week 5. In order to become comfortable with your group and begin to work together, explore the Groups area of Blackboard and other avenues for collaboration, such as online social media sites. During your collaboration, divide the work so that participation is equal and is acceptable to all group members. Week 4: With your assigned group, research and conduct an economic impact study on a potential site for a university sport stadium. Information on these sites is provided in Week 4 in the form of a handout and a media piece that is a Virtual Community Map. This map is an important resource for your group as you analyze the economic impact of your assigned site. For the Week 4 Assignment, you create and submit a PowerPoint presentation with your group that provides a summary of your analysis. Be sure to consider the different variables that affect the site selection—taxes, socioeconomic conditions, physical layout, and so forth. In addition, consider the following:

• How does market value influence site selection? • How might taxes, socioeconomic conditions, or physical layout affect your site

selection? • What impact do you predict the site you selected will have on the community’s

economy?

Each individual within the group is expected to contribute to the project equally. Participation might include research, PowerPoint slide or notes creation, or group leadership. Participation will count toward your final grade. Create a PowerPoint presentation of 12–15 slides that includes the following sections and subsections: Section I: Executive Summary (40 pts) 1. Executive Summary (1 slide) bullet points: Provide a brief snapshot of the other

sections of the PowerPoint presentation (i.e., the headlines of the other sections)

2. Site Selection (1–2 slides) 2.1. Identify the location. 2.2. Provide a justification for whether the site is viable, based on the economic

impact it will have on the sport organization and community. Use specific examples.

2.3. Describe infrastructure needs.

Section II: Economic Impact: Stadium Construction (60 pts) 1. Prepare an economic impact analysis including dollar impact and jobs created

onsite and in the community. (1 slide) 2. Define and explain the multiplier used (see Project Assumptions) (1 slide) 3. Determine the total cost of facility and land (1 slide)

Section III: Economic Impact: Stadium Operations (60 pts)

1. Prepare an economic impact analysis including dollar impact and jobs created onsite and in the community. (1 slide)

2. Define and explain the multiplier used. (1 slide)

Section IV: Other Considerations (40 pts) 3. Development Opportunities (3 slides—1 each)

a. Proximate b. Complimentary c. General

4. Other Miscellaneous Information (1–2 slides).

a. Here, you may include anything you would like to add to justify your case.

Project Assumptions

1. Facility Construction a. Cost of construction: all facility costs (including labor & materials) = $800M

U.S. dollars (60% local spending) b. Land requirements Stadium 1300 ft x 1300 ft = 1,690,000 sq. ft

Parking 2500 ft x 2500 ft = 6,250,000 sq. ft Land costs are Market Value

c. Parking 7000 spaces d. Seating 45,000 seats e. Luxury suites 40 f. Labor 2200 workers will be used

Total labor hours used over the 2 years of construction is 1.9 million hours 75% of the workers live in the county

2. Facility Operations a. Visitor spending $250 per person per day / 3 days per stay b. Attendance 90% per game c. Stadium employees 600 per game (average 4 hours each per game)

Average hourly pay is $10 per hour d. Concessions $8.25 per capita spending

3. Cost per square foot for the land associated with each site:

a. Site 1: $200 per square foot b. Site 2: $145 per square foot c. Site 3: $60 per square foot d. Site 4: Free (land was a city golf course) e. Site 5: $3 per square foot f. Site 6: $5 per square foot

4. Community Overview

a. The business structure of the community is consistent with a moderate size community.

b. Economists project 16 jobs are created in the community for every $1M in visitor spending and 20 jobs for per $1M in local spending.

Submit your PowerPoint presentation to the Discussion Board by Sunday, 11:59 p.m. ET. Week 5: In Week 5, you vote on the presentation that you believe provides the most convincing justification for the proposed university stadium site, based on the group’s economic impact analysis. The presentation should address why the group believes that the site

would be beneficial, the costs involved, and a justification of the expenditures, in addition to the specific information outlined above. In addition to your group PowerPoint presentation, on your own, in Week 5, you will complete the Group Member Evaluation Form: Site Selection and Economic Impact Project, which you will send to your faculty as an attachment with your vote. This form includes space for you to evaluate and comment on your own participation and that of your group members. In the comments sections, be as specific as you can about how each member did and did not participate (including comments about your own participation). This form will be submitted on Thursday of Week 5. As noted in Week 3, these participation evaluations will contribute toward your grade.