Document Type

Closed Project

Publication Date

Fall 2002


Timothy Anderson

Course Title

Engineering Economic Analysis

Course Number

EMGT 535/635


Major League Baseball (Organization), Portland (Oregon) -- Sports franchises -- Economic aspects, Baseball teams -- Location -- Analysis, Engineering economics


The city of Portland and the Portland Baseball Group are collectively interested in taking steps to determine the feasibility of developing a downtown entertainment district in conjunction with the construction of a new stadium in the Portland metropolitan area.

As a part of a larger feasibility study of the stadium proposal, Ferris Consulting was hired to determine the economic impact of a stadium which is: 1) privately owned and funded (franchise pays); 2) publicly or privately owned and publicly funded stadium (the general public pays); and 3) a combination of public and private money. The results of each analysis will be used to help determine the best alternative of the three financing proposals, and to ascertain which alternative has the greatest potential for benefiting the team, the landowner, and the city.

In determining the economic impact of sport venues, many challenges exist. It is not a trivial task to find a suitable method to measure the economic impact to the local economy given the difficulties in measuring costs and benefits for events generated from spectators, event participants and Sponsors. Further complicating the measuring process is the demographics of the stakeholders: 1) the local consumer versus the visiting consumer; 2) the game fan; 3) the event fan and 4) the anti-fan.

In this report we try to explain what the key factors in true economic growth are and how they affect each of the three financing alternatives mentioned earlier. In our modeling we consider spending, indirect spending, jobs created, respending of the new dollars generated, as well as the fiscal impact calculated at the city levels for each proposed funding alternative.

In this report we will show which of the alternatives are feasible enough to recommend and present to the Portland Baseball Group.

Note: The presentation associated with this report is included here as a supplemental file.


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