Former Illinois Bell and Ameritech Director of Corporate Planning Joseph L. Daleiden, who also served as Economic Advisor to the Executive Office of the White House, Office of Management and the Budget during the Carter Administration, prepared the following report about the viability of Lakewood’s proposed SportsPlex after examining the group’s application for bonding approval by the Upper Illinois River Valley Development Authority.
In today’s analysis, Daleiden looks at how well other sports complexes have done, pointing out,
“There are no data to suggest that any of the sports complexes are making a profit!!!”
Part 2 – Comparisons with other Sport Complexes
There is little information on the relevant markets for other sports parks such as the population within the 10 and 20 mile areas, the income distribution of the population within the area, and the actual annual revenues, costs and profitability.
Moreover, in at least some locations with favorable weather year round, the entire number of playing fields might be available for most or all of the year.
Hence, the comparisons are of no value.
A review of several other sport parks facilities in the Chicago area reveals that although they are located in markets of far greater population densities, the only one that appears to be running in the black is located in Barrington, one of the wealthiest communities in the nation.
The comparisons with other sports complexes supplied in the study are useless since virtually no significant financial data are provided. Profitability data is mentioned for only three operations.
- Tuma in Marion, Iowa is a 110 acre operation that generated total revenue of $33,000 with expenses of $120,000!
- Elgin is a huge 407 acre facility with revenue from operations of only $380,000!
- The 600 acre National Sports Center in Blaine, Minn. generates approximately $5 million dollars in revenue.
- The study states that 163 acre South Germantown Recreational Park in Boyds Maryland generally operates at a loss.
There are no data to suggest that any of the sports complexes are making a profit!!! (Emphasis in the original.)
As for the estimates of general revenue impact on the area surrounding the sports, complexes, if they are anything like most estimates provided by Chamber of Commerce’s, they are not wildly optimistic with no hard data to support them.