Study: Soccer stadium construction would boost Sacramento economy

Dive Brief:

A Major League Soccer stadium in Sacramento, CA, could create $200 million in construction expenditures and $1.24 billion of economic benefit for the region over 30 years, according to a study commissioned by the Sacramento Public Policy Foundation.
The stadium proposal is part of a bid by United Soccer League club Sacramento Republic FC and the city to win an MLS franchise for Sacramento, and the stadium is contingent on them getting a franchise.
The stadium — which would cost approximately $150 million and open in 2018 — would, according to Cathy Dominico of Capitol Public Finance Group, create more than 1,700 construction-related jobs and 130 to 220 jobs when the stadium opens, the Sacramento Business Journal reported.

Dive Insight:

Minneapolis was awarded an expansion slot this year, and the Sacramento Bee reported that the MLS plans to expand the league from 20 teams to 24 by 2018.

Sacramento and Republic officials seem to be determined to win one of the remaining slots and have created "Operation Turnkey," which, according to the Bee, will involve a development team putting together stadium designs, construction documents and the site’s environmental reviews, allowing the group to move quickly on construction of the stadium if it receives MLS approval.

Undeterred by Las Vegas' failed MLS stadium plan, which cost the city $3.1 million, proponents hope the study is correct and that the stadium will generate $2.2 million in taxes for the region, generate visitor spending of $15.3 million, and stimulate ancillary development that will benefit Sacramento and surrounding areas for years.

The economic impact of stadium construction has been an ongoing debate, as other reports have found that new stadiums don't always benefit the local economy. But team owners, as well as local and state governments, seem undeterred by these conflicting reports.

Milwaukee Bucks President Peter Feigin, for example, has promised to start "a transformative economic development project that will help revitalize our community and region," as the Wisconsin State Assembly agreed to spend $250 million to help build the basketball team a new stadium.