How Much Tax Revenue Does Dallas Stand to Make from the 2010 NBA All-Star Game?
Which means, after all those expenses are covered out of the trust fund: "Potential tax revenue gain to the city is estimated to be $760,000," according to the council briefing. And keep in mind, that guesstimated income doesn't include other intangible benefits weighed by the city, among them "secondary spending, media exposure, growth to visitor industry, etc." Which, of course, is ... priceless.
So how'd the Comptroller do the math?
Which means that even though the game's in Arlington, far as the city's concerned, most of the money will stay here. From the briefing:
Major Events Trust Fund Why ParticipateThree years ago, then-University of Texas at Arlington economics prof Craig Depken co-authored a controversial study that said "mega-events" such as all-star and playoff games don't really do much to boost tax revenues anyhow. (In fact, Depken and his co-author said, data often points to a decrease.) But even a nonbeliever like Depken -- who, turns out, moved to North Carolina to get out of the shadow of Cowboys Stadium -- acknowledged the benefit of pro basketball's mid-season wingding: "Among the All Star Games, only the NBA All Star game generates increased taxable sales and increased sales tax revenues."
- Hosting City-wide and regional special events generate millions of dollars of economic impact.
- Sanctioning organizations sponsor Community Awareness programs/initiatives.
- Global exposure from media broadcasts will allow the City of Dallas to showcase the investment in its image and infrastructure.
- The City of Dallas can benefit by providing the majority of the required hotel room nights. A large portion of the visitors to the region will visit the city's restaurants and other entertainment venues.