The Impact of a Professional Sports Team on a City
Craig Keller
Microeconomics
12-2 T -T

All major cities in the U.S. have one thing in common with each other; they all have professional sports teams. From New York to Los Angeles, from Seattle to Miami all have professional teams. They all have the devoted fans no matter if they win the championship or they finish last. But having a major sports team in a city is more than just having someone to cheer for. A sports team can and often does a benefit on the city they are in. They benefit the city’s economy in various ways.
Oklahoma City is a city that is considered a small market. The city has had sports teams before, an AAA baseball team, and a minor league hockey team, but never a major league team. Oklahoma City is currently the largest city in Oklahoma. In land area, it is the 3rd largest in the nation behind Anchorage and Jacksonville. (Knapp, 2009) Oklahoma City estimated population is 537,734 as of 2006. ( U.S. Census Bureau, 2010) In 2008 the city finally got a professional sports team. The NBA team the Seattle Supersonics moved from Seattle to Oklahoma City and became known as the Oklahoma City Thunder. The move was possible because the city of Oklahoma had been trying for some time to get a professional team. To do this the city came up with what is called the Metropolitan Area Projects (MAPS), which financed new and upgraded sports, entertainment, cultural and convention facilities primarily in the downtown section with a temporary 1-cent sales tax assessed. Despite the "metropolitan" moniker of the improvement program, the tax was only assessed inside city limits. (Warner, 2003) This desire to update the city and make it more relevant on a national scene as help not just the cities look but also it’s economy. In the oil bust of the 1980’s the entire state felt the hurt of high unemployment, the city fell apart. The area’s that where booming, became run down, the downtown area was a virtual ghost town. So not only did the MAPS tax provide the money to build and improve on the area, it also provided more jobs to the area. With the value of the entertainment offered rising with all the invested money, more and more people wanted to spend their money downtown. This brought in more businesses, more attractions, and more money to spend on even more enhancements to the area. This rise in the economy is on a smaller scale much like the one the nation had in the 90’s and 2000’s. Even during the downturn with the past years economy the city has not been as effected as some areas like Detroit, or Michigan overall.
In the team’s first year they went 23-59 which was the 4th worst record in the NBA. And yet with that record they finished 11th in average attendance with 18,693. Even with the poor economy the Thunder sold out every home game. They beat out championship caliber teams in attendance like the Celtics and the Suns. The team itself as done so much for the city wither it be financially or by changing the entire way the state is looked at. “Let’s face it; most people think there are only two things in Oklahoma: Sooner football and tumbleweeds,” said Brian Schmitz, sportswriter for the Orlando Sentinel. (Upchurch, 2010) This has happened in other markets to for example Schmitz went on to say “but there’s more to Orlando than Mickey Mouse.” The (NBA’s) Magic lifted Orlando’s profile, so now people know there’s more to Okie City.” In a recent segment on the sports show “Jim Rome Is Burning,” Rome and his panelists — including Chris Mannix of Sports Illustrated — raved about not only the Thunder and their success, but the city itself and how it has become one of “the” places to be. “To me, there’s no question that the NBA’s arrival validates Oklahoma City. I can speak from being there in March for the NCAA Tournament and feeling that the Ford Center was more of a big-time venue, just because the Thunder plays there,” said Kurt Kragthorpe, who covers the Utah Jazz. “It’s really similar to Salt Lake City in that respect. The Jazz have been here 31 years now, and the Jazz have given the town a worldwide identity it would not otherwise have.” (Upchurch, 2010)
With the Thunder’s success the OCASA (Oklahoma City All Sports Association) has been able to get other sporting high –profile amateur sports which generate more interest in the area such as the Big 12 Baseball Championships as well as the NCAA women’s college World Series. Because of the Thunder the city is now thought of as a big time sport’s city. The big winner in all of this is the area’s economy. According to Oklahoma City All Sports Association, the events it hosts alone have a $28 million impact on the city’s economy each year. Tim Brassfield, Oklahoma City All Sports Association executive director, said the Big 12 Men’s Basketball Championship Tournament at the Ford Center generates $30-$40 million economic impact alone. “Oklahoma City is certainly a destination point for collegiate championships,” Brassfield said. “The schools know [the event] will be hosted in a professional manner and all of the details will be addressed. We have great fan support. We have all the ingredients here to be successful.” Tim Allen, assistant commissioner for the Big 12 could not agree more. But it takes more than strong management and throngs of cheering fans to attract the big events, along with the big bucks. MAPS, apparently, has put the city on the map when it comes to landing the big game. “Oklahoma City has a long-standing history of hosting quality events,” Allen said. “There have been tremendous improvements in the downtown area. Oklahoma City brings a lot to the table in a nice, neat little package in terms of amenities.” (Nagle, 2005) One of the things that was in the MAPS project, the project that ultimately brought the Thunder to Oklahoma City, was to dam the North Canadian river to make it not only look better but also make it usable. The United States Olympic rowing team as moved its headquarters to Oklahoma City because of this reason.
The MAPS projects that the city started in 1993 in order to obtain a professional team and to better the city has had an economic impact of just short of $1 billion, with another $1.1 billion slated for future projects. While no city is ever completely immune to downturns in the economy, Forbes recently named Oklahoma City the most recession-proof city in the U.S. Crediting a strong housing market and falling unemployment rate, Forbes says that Oklahoma City is “best positioned to ride out the current crisis." The energy sector - supported by companies including Devon Energy and Chesapeake Energy –both part owners of the Thunder have served the City well, driving both wage and job growth. (Alvaro, 2008)
Every good thing has its downsides. With the success of the Thunder in Oklahoma City, the Oklahoma City Blazers, the Central Hockey League affiliate, have gone by the wayside. Once they drew 19,000 plus in attendance and hold all the records for attendance in the league but now in the past few years they are lucky to draw 4,000 fans even though they were a good team. They had appeared in 8 straight playoffs and won 7 straight division championships from 1996 to 2003. And yet, they could not draw a crowd. In July of 2009 the Blazers suspended operations. So even though the Thunder has done a lot of positive things for business and the perception of the city, the city itself loses a little bit of its history in the process.
The future looks really good for the Thunder and the Oklahoma City. The newest MAPS project that was voted on just last December passed easily, even with the sluggish economy, with people realizing that if it weren’t for the previous MAPS projects that the city wouldn’t have the Thunder, or be as prosperous as it is now. It includes a new convention center, a 70 acre downtown central park, and a downtown cable street car transit system. Even with all of the positive things brought into the city’s economy by the MAPS tax, if the Thunder hadn’t moved to Oklahoma City, the project most likely wouldn’t have been passed, because voters are not always looking at the economic picture of things, most just want results. The Thunder have also improved greatly going from winning 23 to 50 games and making the playoffs. That adds games to their schedule which gives the city more revenue, with people coming to see the games, spending money in hotels and restaurants and all of the things they have to do downtown. With the new renovations to the Ford Center it makes it a real big league place to play. Estimates now call for the city to spend about $91.7 million on the Ford Center upgrades and $14.4 million on the practice facility. The arena renovation will continue this summer with a series of minor updates to concession stands, restrooms, a green room and the offices of the arena's management company. Construction on a final phase that will feature a grand entrance will begin during next season and require the closure of the arena after the season is over. That phase, estimated to cost about $39 million, is scheduled for completion prior to the 2011-12 NBA season. (Associated Press, 2010) The Thunder moving to Oklahoma City is one of the best things to happen to the city. It not only brings a ton of money to the city but it validates the city. It makes the city bigger on the national stage. The city is now trying to get an AHL team, to add to the major league feel of the city. With all of the recent improvements in the downtown area, it makes it a great place to live, and it also makes the player want to stay in Oklahoma City. With all of the young talent that the Thunder has, getting them to want to stay and be on the team is real important in the future success of the team and the city. Because as we’ve seen when the professional teams do not perform well it also affects the cities they are in. For example the Detroit area, yes there are other factors in the down turn for the city, but the teams are not performing well ether. The Lions and the Pistons have both had significant downturns in their organizations. With the teams losing, they won’t draw crowds to the games, they will not make money and they don’t provide the excitement or the thrill or the joy of being part of the community. Unlike people in Oklahoma City, people are not as proud of the area they live in here. They do not want to put money into the city so the buildings and houses lay run down and empty. To get the Detroit economy back on track, the local government is going to have to find a way to bring money in for improvements, to make people want to live in and work in Detroit. They should look how this success in Oklahoma worked and find a way to make it work here, because everything they have tried have ended up putting them in the position they are now. I know from my personal feelings that I am way more proud of the fact that I am from Oklahoma City then the fact I now live here.

References
U.S. Census Bureau. (2010, April 22). State & County Quickfacts. Retrieved 04 23, 2010, from U.S. Census Bureau: http://quickfacts.census.gov/qfd/states/40/4055000.html
Alvaro, M. (2008). Oklahoma City Named Least Vulnerable to Recession. Hinsdale, IL: MuniNet Guide.
Associated Press. (2010, May 25). Thunder arena budget clearing up. Retrieved May 25, 2010, from ESPN.COM: http://sports.espn.go.com/nba/news/story?id=5220354
Knapp, A. (2009). Oklahoma City Trivia Facts. Oklahoma City Guide , 4.
Nagle, M. (2005). Training For The Show. Okc Biz .
Upchurch, J. C. (2010, april 21). Thunder’s success helps alter perception of OKC. OK Gazette .
Warner, L. (2003). IMPACT ANALYSIS OF MAPS AND OTHER. Oklahoma City: Regents Professor Emeritus.