Impact of Football Team in O.C. Seems Debatable

The economic impact of a professional football franchise in Anaheim will be negligible at best, if the city builds a new football stadium or not, UCI Economics Department Chairman Amihai Glazer said. In fact, it might cost residents money.

“It would be trivial for a small community like Anaheim,” Glazer said. “Much of the money will go to people outside the city. But the taxes, the city will bear those costs with little benefit.”

An analysis by Chapman University officials on the Rams’ departure supports that view. University President James Doti said the city would lose an estimated $20 million per year when the Rams moved to St. Louis after last season.

“It was like a small manufacturing firm leaving,” Doti said.

But Anaheim Mayor Tom Daly said there are benefits beyond the bottom line. Daly said “intangibles” that make a professional franchise desirable.

As an example, Daly said the Ice Disney in downtown Anaheim, is open to the public. He also cited the community charity work the Ducks and Angels have been involved with in the past.

“School kids in Anaheim would never have had access to a state-of-the-art facility if the Mighty Ducks were not based in Anaheim,” Daly said.

“If the owner invests in the community. If the owner makes it possible for poor kids to attend professional games. If the owner makes of the team helps buy equipment for youth organizations. If the players spend time in the community. If all those things happen, there’s a benefit.”

Anaheim actually profited more last year from the Rams’ departure. The team paid the city $30 million as part of an escape clause from its 35-year lease.

Not even the construction of a new stadium would give the city a short-term economic boost. Glazer said it’s unlikely the city would use only contractors from Anaheim.

Whatever financial benefits from having a team would likely detract from other entertainment areas in the city, Glazer said.

Sportstown, a proposed sports and entertainment park in Anaheim that could include a new football stadium, would create 3,879 jobs for the city, according to a report released last week. But how many of those would go to Anaheim residents is unknown.

“If Manhattan Beach got a football team, the jobs it would create would come from all over the South Bay, not just the city,” Glazer said.

The effect would be felt countywide, but any economic benefits of a football team might draw from the economies of other cities.

“Suppose Anaheim spent $40 million on a team,” Glazer said. “People who bought $40 tickets wouldn’t be spending that $40 on movies or restaurants. People would not be pumping more money into the economy.”

Said Doti: “The players didn’t live in the city and they spent their money elsewhere. There are only eight or so home games. The financial impact isn’t that great.”

So why have a team?

“That’s a political question,” Glazer said.

Said Daly: “You have to look beyond the dollars and cents.”