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Wednesday, December 08, 2004

Economist: Saints have little impact on city's economy

The Saints have no positive economic impact on New Orleans, an economic expert said Wednesday, meaning that the state and city should focus on the intangible benefits the team produces when deciding whether to pay for a renovation of the Superdome.

The comments by Robert Baade, a professor of economics at Lake Forest (Ill.) College, who has done extensive research on the economic impact of stadiums and professional sports teams, come as the state and the Saints organization debate a new deal to keep the team in Louisiana.

In fact, Baade said, if the the Saints moved, the economic impact would not be substantial, because New Orleans attracts tourists for many other reasons.
Across the country, he said, construction of new professional sports stadiums does not generate enough economic activity to justify spending considerable sums of tax dollars to build them.

Although a new stadium for the Saints has been discussed, talks are now leaning towards a renovation of the Louisiana Superdome, along with direct state payments to the team to keep the franchise in New Orleans through 2020.

A study released last week by the state said that a new source of funding for government payments would have to be found.

Baade told a meeting of the Bureau of Governmental Research, a New Orleans-area watchdog group, that he has studied stadium issues from Los Angeles to Athens.

"Economists rarely agree, but they agree on this particular issue, funding and subsidizing professional sports by the public sector does not result in a very large economic payoff,"

If the Saints moved, the economic impact would not be substantial, because New Orleans attracts tourists for many other reasons, Baade said.

BGR is conducting its own study of sports teams in New Orleans and plans to release a report next month.

Last week, consultants studying the issue for the state said a $168 million renovation of the Louisiana Superdome could provide seating and amenities comparable to top new NFL stadiums and give the New Orleans Saints a strong incentive to stay in Louisiana.

But the consultants told the Superdome Commission that satisfying the team's demands would require some sort of new tax that would need to generate anywhere between $8.4 million and $12.7 million per year, depending on what the Saints are willing to contribute.

Gov. Kathleen Blanco has called on the Saints to open the team books to state auditors. But she has stopped short of making that a requirement to cut a possible deal.

The Associated Press contributed to this report

:mad: Anybody agree? Things are not looking up...

[Edited on 9/12/2004 by mutineer10]