This report discusses the current conditions in the professional sports market that cause professional sports franchise relocations. Addressed are the economic conditions of the sports market and the constraints upon city leadership when considering sports facilities leasing. In an attempt to stop relocations, the report explains a proposal for the inclusion of liquidated damages in sports facilities leases. The proposal also includes the creation of a fund derived from ticket tax revenues to be used for facilities improvements upon expiration of the lease.
Viability of the proposed fund is tested upon typical stadiums for each of the four major professional sports. The test analyzes the ticket and luxury revenues of each stadium to determine what method of taxation and fund investments will be required to produce revenues sufficient to stop a franchise relocation.