A new baseball stadium for Oakland Atheltics would generate $3.05 billion of economic impact for the City of Oakland over the first 10 years of operation, a new report says.
The Bay Area Council Economic Institute (BACEI) said if the new ballpark was to be located in the downtown area, there would be additional benefits in the form of increased spending at local businesses and the opportunity for adjacent development.
The Oakland A’s are said to be looking at three sites for the new stadium: the current headquarters of the Peralta Community College District; Howard Terminal and land surrounding the Oakland-Alameda County Coliseum.
A new Oakland stadium would be entirely privately funded, with no taxpayer contributions.
The BACEI said there would be $768 million in economic impact from construction with 2,000 jobs likely to be created.
Day-of-game attendee spending would likely give $1.54 billion in economic impact. The report said:
New ballparks around the country have reported a significant increase in day-of-game revenue through a combination of attendance increases and greater per patron spending. While these expenditures represent a financial benefit for the A’s, they are also largely new dollars flowing into the Oakland economy from non-Oakland residents.
An analysis of new ballparks dating back to 1999 shows that gate receipts grow by approximately 2x in the first year of operations of a new stadium while concession spending increases at an even higher rate.
Meanwhile, spending on ballpark operations would add another $742 million. The BACEI said:
In a new stadium, the A’s will make considerable local investments in non-baseball staff, contractors for stadium operations, and marketing of the team. Spending on these items was $43 million in 2015, and we expect these expenditures to grow to above $62 million annually in a new stadium.
These dollars will pay the salaries of some local workers while other expenditures will be revenue to local businesses.