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How Professional Teams Benefit the Economy of Cities They Play In

There is much made about how much teams ask of taxpayers in the cities that they are in. While the owners are millionaires or billionaires, they still ask the city where they play to put up money to help build a stadium or ask to split revenues from the stadium others have paid for. However, professional teams are still in high demand because of what they do for the local economy. What are some of the specific impacts?

The City Gets a Boost in Prestige

In general, a city that has a professional team is thought higher of then cities that don’t have sports teams. In some cases, the sports teams may be one of the few attractions of the area. For instance, without the Sabres or the Bills, Buffalo is just another city in upstate New York. Without the Packers, Green Bay is just another small city in the middle of the country.

Stadiums Can Often Be Used for Many Purposes

While a stadium may be built specifically for a baseball team or a basketball team, those stadiums aren’t used throughout the year. If a team plays in the NFL, it may only be used for 10 dates the entire year when you include preseason and regular season games. When the stadiums aren’t be used by their main tenants, they can be used to host conventions, concerts and other large events. They may also be used to lure major events such as the Olympics or other national or regional competitions.

Bars and Restaurants Near the Stadium Make Money on Game Day

In more urban areas, it may not be possible to tailgate in the stadium parking lot before the game. This means that people have to grab a beer or dinner before the game at a bar or restaurant near the stadium or arena. After the game, those same people may decide to stick around for another drink or to kill time before they are good enough to drive home. For those who work at these establishments, they may see more tips while the business owners will see increased revenues. The city benefits because they see more tax revenue from the businesses that make that money.

The Team May Create Hundreds of Jobs

When a team comes to town, they will have a wide variety of positions that need to be filled. For example, someone will be needed to take tickets, sell hot dogs or park cars in a proper manner. There will also be a need for people in the sales and marketing departments as well as security personnel to keep people safe during the game or during any other event at the stadium or arena.

The Team May Spur Employment in Other Ways as Well

Before a new team can start play, it will need a new stadium or upgrades to a current stadium. That means construction jobs that pay well and will last for several months or years. Employers around the stadium will also need to hire more workers during the season as more people come to shop, eat or otherwise spend money in town. If a town has a casino or is otherwise known as a gambling town, people may decide to spend money as an alternate to sports betting sites or in addition to bets made online.

If your city is about to get a new professional sports team, it may be something to celebrate whether you are a fan or not. In a worst case scenario, you may be able to find a job, benefit from increased public services or feel better about living in a city that is known on a national level thanks to money derived from that team.

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How Fantasy Sports are Changing the Face of the Economy

What are Fantasy Sports Anyway?

Fantasy sports used to be a simple betting game among sports fans and friends to see who had the most insight into the art and science of the games. A group of guys would get together, watch their favorite teams, and then make good natured bets on the outcomes of not just specific teams but individual players. However, with the introduction of the internet, the game of fantasy sports has changed drastically. Basic strategies include following sports teams and their players carefully in order to increase the odds of picking the best players. If an online fantasy sports fan wants to play fantasy basketball, he would probably spend a little time researching the NBA odds of certain players doing well in upcoming games and make his fantasy team picks accordingly. 

Online, Offline – Is There a Difference?

Online fantasy sports participants combine real players into a virtual fantasy team. These teams are then ranked based on their performances, and the performances of the players within them. The statistics of each game are compiled into points which are then calculated into real cash earnings. The difference between fantasy sports at home and those online is that players can compete against anyone else who is using the same site.

So Who Exactly Plays Fantasy Sports?

Online fantasy sports have fans from all walks of life. Whereas traditional games were typically played by a group of guy friends, the individual nature of the internet presents opportunities for anyone with a computer to participate. Statistics of the top fantasy sports sites indicate that although the majority of users are middle aged men, an increasing number of women, and elderly users have begun to not only just play, but win!

This Can’t Really Affect the Economy, Can it?

Online fantasy sports were one of the fastest rising industries of 2015 with more than 50 million active players using the sites. The most popular sites of the year, FanDuel and DraftKings both saw increases of over 40% of their revenue with the use of successful marketing campaigns which included both online and television commercials using real player testimonials.
Even someone who has no interest in fantasy sports has the opportunity to get in on the action. Many online fantasy sports companies are public, which means anyone can buy and sell their stocks for a profit. This means that anyone who participates in the stock market, regardless of their ability to play fantasy sports can benefit from this booming business.

The Real Stats

The Fantasy Sports Trade Association estimates that 56.8 million people in the U.S. and Canada played fantasy sports in 2015. This number is expected to increase by at least 15% in the next year as emerging companies begin to attract more fans.
Eilers Research is a self-described boutique research firm focused on servicing the gaming equipment, technology, and interactive gaming sectors within the global gaming industry. In 2015 they rocked leading economists worlds by projecting that daily fantasy games would be generating around $2.6 billion in entry fees this year, a statistic that later proved accurate. This is nothing compared to their projected increase of 41% annually, which indicates that online fantasy sports companies will earn around $14.4 billion in the year 2020. That’s the equivalent of earning $2 dollars for every human being currently living on earth.

So What Does This All Mean?

What was once a novelty designated to water cooler conversations or a night in with the guys has become a veritable cash cow. New formats are being invented daily to keep fans guessing and to improve the chances of winning big. With existing companies exceeding all the experts’ financial projections and new companies on the rise with intent to go even further, online fantasy sports are proving to be not only a big business, but one that is booming! Fantasy sports are here to stay.

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