The source of financing is an essential factor to consider when developing sports facilities in a community. The funding can be done by the government, the community, or by private enterprises depending on the circumstances. In an instance where there is a proposal on the construction of a modern multi-purpose stadium, then a government-run facility would be the most efficient as opposed to a privately run facility. A stadium is an expensive venture and therefore requires a lot of funding that only the governments can fund fully (Leeds, VonAllmen & Matheson, 2018). Multi-purpose stadia improve the service provided to the residents of a community as various sporting activities can be done at the same time and in the same venue.
Through applying the Public Interest Theory, a government-run multi-purpose stadium would benefit most individuals as the resources allocated would be those that maximize public benefits. Any government-run facility should place the interest of the community served at heart. Therefore, before allocating resources to the construction and development of a multi-purpose stadium, the interests of the community must be considered. It would be uneconomical to build a recreation facility that does not serve the people fully (Graham et al.,2014). Government-run facilities present numerous benefits to the participants of various sporting facilities, the community through the development of talents and businesses, and the whole nation through revenues collected from sporting activities.
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In as much as private-run facilities are more efficient and flexible as compared to the government ones, government-run institutions still lead in terms of financial and service impact on the community. When a stadium gets built, the financial position of the population improves. Businesses begin to flourish, and many employment opportunities are created by the stadium (Feng & Humphreys,2018). Government-run facilities are open to all and in most cases, at affordable prices and sometimes free. The members of the community enjoy any services directly through participation and indirectly through other benefits that the facility brings.
References
Feng, X., & Humphreys, B. (2018). Assessing the economic impact of sports facilities on residential property values: A spatial hedonic approach. Journal of Sports Economics, 19(2), 188-210.
Graham, R., Rivara, F. P., Ford, M. A., Spicer, C. M., Committee on Sports-Related Concussions in Youth, & National Research Council. (2014). Sports-related concussions in youth: improving the science, changing the culture. National Academies Press (US).
Leeds, M. A., Von Allmen, P., & Matheson, V. A. (2018). The economics of sports. Routledge.
