Question

Scenario: A team owner has threatened to move her professional football team from your city to another city if you do not build a new stadium. As mayor of the city, you need to figure out whether it is worth raising the money through public sources (e.g., bonds, taxes) to keep the team or whether it is not worth the money to keep the team in the area. Using the information in chapter 11 on capital budgeting, write a five-page double spaced paper addressing whether or not to try to keep the team.

Answer 1

Opinion :	It is better to raise money through Public Sources (bonds, taxes) to build a stadium and keep the Professional foot ball team in the area.
Explanation :
1	In the real world, Most of the Money raise through public sources to build a Stadium
2	The main reason is to raise money through public - Tax exemption provided by state and Local governments. It lowers interest on Debt and reduces the amount that cities and teams pay for the stadium.
3	Foot ball is reputed sports in the world and commercial too. Owning the own state Professional football team will build the reputation of the city and the chances of development of the city is more due to the audiences from different places visit the stadium to watch the games.
4	Building of one stadium provides the thousands of jobs in the construction phase, Maintenance phase and operational phase which leads to growth of economy and reduce the Unemployment rate of the country.
5	The additional revenue generated through advertisement of different companies.
6	If the football team performs well - the sale ratio of tickets will be higher and generates good revenue which leads to ratings of bonds will be good.
7	If the foot ball world cup is performed in the stadium - the reputation will increase, growth is exponential,City name will be known to the whole world, opportunities to many people run some business and earn Income.
8	Building of Stadium give opportunity to many people to run business like food canteens, clothes, sports materials…etc. it will also generates income to Stadium by way of commission from business people.
9	The Value of land day by day is increasing - the Market value of Land( Stadium place) leads a gains due to increase in its market value.