Case: Stadiums, Taxpayers, and sports MillionairesQuestions1-Who are the stakeholders involved in the construction of new sports facilities ? 2-What are the issues involved ? How do these issues relate to the Fourth Sector approach to economic activity ? 3-Can the building of these sports facilities be justified, and if so, on what rationale ?4-Should cities become involved in this type of private-public partnership ?

Calgary Mayor Naheed Nemshi and City Council were considering a proposal by the owner of the Calgary Flames to build a new arena and recreation complex. Calgary Sports and Recreation Corporation, which includes the NHL's Calgary Flames and the Canadian Football League's Calgary Stampeders, proposed a $890 million arena plus a combination stadium/field house for the downtown area. The complex would be financed with the corporation putting in $200 million, the City of Calgary $200 million, $250 million raised by a ticket tax, and $240 million by a community development levy where the taxpayers would be repaid by increased economic activity. In effect, Calgary taxpayers would be providing $440 million plus the land. Similar schemes have been proposed by the owners of professional sports teams in other Canadian and American cities. Most involve wealthy franchise owners expecting taxpayers to subsidize the construction of new facilities. Sometimes pressure is applied by suggesting that the team will relocate to another city unless the new subsidized venue is not forthcoming. Often the new facilities are promoted as a stimulant to renewal of downtown areas and creating economic spinoffs thus having a multiplier effect. The schemes are usually complex and not easy for the public to understand. Critics argue that the cities are victims and saying that taxpayers are giving money to the owners and well-paid players. The cities should be using the money for essential services such as affordable housing or improved social services. Numerous studies, including those by academics, have found that subsidizing new stadiums does not generate new full-time jobs, growth, or tax revenue. The wealthy owners of the sports franchises get a new facility and new revenue streams thereby increasing their profits. The subsidization is referred to as another form of corporate welfare. These critics state that if the new facility is not economically viable, then it should not be built. Yet many cities do get involved in the schemes. Some believe that economic benefits are generated. Others simply get involved for emotional reasons: civic pride, the thrill of the game, and cheering for the "home" team. Negotiations came to a standstill, and Mr. Nemshi was re-elected as mayor despite the efforts of the Flames' ownership to defeat him. The City Council has set up a committee to work on reopening the talks to replace the ar