Jarrett GreeneSkeeter RichardsonMicro EconomicsMay 12, 2014Subsidies and SportsWhile attending sporting events, have you ever taken the time to explore the surrounding area? Is the arena dilapidated? If the arena is worn out, in what ways, besides sports revenue, are they building the arena to be up to par? These are all questions that could be said to be linked to the theme of stadium subsidies. The purpose of this report is to describe what a subsidy is and how American sports interacts with it to make it a major topic. When we look at this topic, we need to consider many things, such as the impacts that stadium funding has on the immediate public, whether it actually benefits the public, and the good or harm it produces. Let's start by understanding what a grant is. A subsidy is “a benefit provided by the government to groups or individuals, usually in the form of a cash payment or tax reduction. The subsidy is usually given to alleviate some type of burden and is often considered to be in the public interest. Politics plays an important role in subsidies. *You're asking how subsidies and sport intertwine, well here's your answer. Americans crave sports, so why not spend millions and billions of dollars to create a base for a sports team when you will get that money back essentially double the amount. “61 percent of Americans identified as sports fans in a Marist poll last November.” These teams have billions of fans, but the sport as a whole acts like a monopoly. A monopoly is “a market structure in which one company constitutes the entire market. This is a market structure in which companies face no competitive pressure from other companies. » Leagues, whether NFL, NBA, NHL, MLB, etc. last year, during the Knicks' season and once summer arrived, she found herself unemployed due to arena renovations. Although it is a temporary layoff, working primarily during the season is already not real work because in an eighty-two game season, only about fifty percent of the games are actually played. at home. Another example would be the relatively new Yankee Stadium. The appearance of the new stadium is outstanding, but what about when the stadium is not being used by baseball? In 2014, in addition to baseball games, a total of three events are held over the summer. Honestly, the amount of money spent to build a stadium right across the street is not worth it. In any situation there are pros and cons. When it comes to stadium subsidies, there are few on both sides. Below is a table showing the benefits and what exactly happens.