Answer to Question #49826 in Macroeconomics for Obinna

Question

How does the all-or-nothing theory play into the economics of sports?

Answer 1

One issue that frequently arises is whether financing for pro sports facilities has to be an all-or-nothing proposition—all publicly-funded or all privately-financed. The Conference Board analysis suggests that funding of facilities can be shared, particularly if governments make use of well-designed financing and governance structures.
As has been done elsewhere in Canada, private-public partnerships (or PPPs) are one way for locations in Alberta to share the costs and risks of developing pro sports facilities, engage private sector project and risk management practices, and thereby reduce the overall costs to taxpayers.