Respond to two peers with at least two probing questions. Try to select a
Respond to two peers with at least two probing questions. Try to select a post that does not yet have responses. Reply to the questions from your peers on your post.
Discussion1
– I decided to look over the article “Cost-benefit analysis of sport events: The case of World Paddle Tour.” Specifically, the study aimed to analyze the socioeconomic impact of the 2013 Caceres International Open, a paddle tournament in Spain which spans an entire week in the month of May. The researchers’ main objective was to calculate the benefit/cost ratio to quantify the social and economic contributions that sport tourism and sporting events have on both a local and national scale. The sources used to acquire the statistical data included both participants and attendees of the Caceres International Open, while the researchers also separated residents from non-residents while finding the average spending on items such as lodging, transportation, meals, souvenirs/clothing, and more. After identifying the estimated costs (spending entailed by the organization of the event from groups such as the City Council of Caceres and subsidies of the Gov’t of Extremadura) and the estimated benefits, the researchers formulated their findings:
“The total cost of the World Paddle Tour held in Caceres is 70,350 Euros, and the benefits are 973,975.44 Euros. These data reflect only amounts spent and received by Caceres city; the benefic/cost ratio of this sporting event is 13.85 Euros: it means that every Euro invested in the event by public institutions has revenue of 13.85 Euros.”
– It can be argued that no city was more affected by the global pandemic than the city of Las Vegas, NV. For an area so predicated on tourism boosting the local economy, the loss of so much business related to casinos, hotels, sporting events, concerts, etc. was a back-breaker to so many people. Fortunately, tourism is beginning to rebound, and hopefully the city’s newest toy, the brand-new Allegiant Stadium for the Raiders and UNLV, will see fans this upcoming fall. However, a recent article from Las Vegas Review Journal noted that Clark County was forced to pull from their reserve account in order to pay an upcoming bond payment for the stadium. $11.7 million of an $18.6 million payment had to be pulled from the reserve account, but fortunately the reserve was originally set up to be able to pay 2 full years of bond payments. It is also noted that the bonds sold to pay the public’s share of the stadium’s construction has been accruing interest, which will then be transferred to the stadium authority once the public share has been fully funded.
https://www.sciencedirect.com/science/article/pii/S1135252315000246
https://www.reviewjournal.com/business/stadium/county-taps-reserve-fund-to-make-allegiant-stadium-bond-payment-2368594/
Discussion 2
Because my degree program is Sports Analytics and Management, I chose to review the study regarding the Caceres International Open. This event, paddle tennis, that is a combination of traditional tennis and racquetball. The competitors play in a closed off space, with a net in the middle and can play the ball off the walls as well as in a traditional tennis format. The World Paddle Tour is the number one circuit in the world, headquartered in Spain, where 12 of their 16 tournaments are played annually. The study conducted was done so to analyze the socioeconomic impact the tournament had on the local area when it was played in 2013. For the analysis conducted, they focused on the benefit/cost ratio and found that between local and non-local attendees, as well as the participants, the benefit of holding the tournament in Caceres resulted in 973,975.44 Euros. This had a total benefit/cost ratio of 13.85 Euros of revenue for every Euro invested into the event. Another way to look at this is taking the total benefit of 973.975.44 Euros and dividing it by the 70,350 Euros originally invested for that total of 13.8447 (rounded up to 13.85).
I recently re-located from the suburbs of Augusta, Georgia, the home of the annual Masters golf tournament. As a prior resident, I have seen a fair share of my friends and neighbors eagerly rent out their homes every April in order to gain large profits from the one-week rentals for fans/patrons of the tournament each year. With many of the homes in the area being new builds and with a plethora of amenities in the new neighborhoods, groups of fans flock to rent out these large homes in order to avoid paying the larger sums for hotel rooms (if they can be found) or other homes further away from the action. According to Augusta.com, “Lois and All Hutko have rented their five-bedroom, five-bath home…for 18 years…their rental price has grown from $6,500 to $12,500…” (Mirshak, 2012). For many, while there may be an initial cost to rent out the home (upgrades, linens, etc.) the continued annual income outweighs the initial investment. If we use the amount the Hutko family was seeing for their home in Augusta ($12,500) and assume an initial cost of home upgrades (paint, touch ups, professional house cleaning, etc.) and amenities like new linens (towels, sheets/blankets, etc.) to be roughly $10,000 we can see a rate of return of 1.25% annually. Thus, when calculated over a ten-year period, a family could see a total overall return on their investment of $116,415.32. For many, these funds go towards upgrading their homes, family vacations, or even paying down their mortgage. It is an investment that I wish I would have made and have seen many friends gain from.
https://www.sciencedirect.com/science/article/pii/S1135252315000246
https://www.augusta.com/masters/story/news/augusta-homeowners-earn-big-masters-week-rentals