Question

• Do you think differences in the exchange rate will keep the NFL from expanding into Europe?
• What do you think is the best way for a state or local government to subsidize a professional sports stadium?

Answer 1

Yes, the exchange rate definitely keep the NFL from expanding to Europe but if the difference is not significantly high where the chasing power parity exchange rate should be taken into consideration so that they can identify the costs of expanding into Europe relative to that of United States. If the popularity demands is in line with that of United States and the purchasing power parity is not much different than they would consider it expanding and if the purchasing power parity is a lot different with expensive side as Europe, then it can be a downside for the league to expand. The best way to subsidize a professional sports stadium is indeed through the tickets or the ticket prices because this subsidization can actually draw the customers towards the professional sports so that more amount of audience can be drawn closer which can help the professional sports business to grow and contribute to the economy