In an article for the Atlanta Journal-Constitution about potentially building a new open-air stadium or expanding the current Georgia Dome, Victor Matheson, associate professor of economics at the College of the Holy Cross, questions whether it is economically prudent to do either. Matheson insists that despite beliefs that a stadium project would be a job stimulus, it would not create enough jobs to be worth it.
Matheson argues that the push for a new stadium in Atlanta derives from the changing economic dynamics in the NFL. “Under the current collective bargaining agreement,” Matheson told the reporter, “teams are required to have a payroll that is a fixed percentage of the average team revenue of the league.”
Since the Falcons’ deal to play in the Georgia Dome gives them less of the proceeds than teams with newer stadiums like the Dallas Cowboys, New York Giants, and New York Jets, Matheson asserts that they must create more revenue to hit the rising salary floor. “Hence the drive by teams like the Falcons to have someone else build them a new stadium in order to generate the revenues needed to meet the payroll,” Matheson said.
Read the Atlanta Journal-Constitution article.
This ‘Holy Cross in the News’ item by Thomas Van Grinsven ’11.
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