TALLAHASSEE, Fla. — In the heart of the Sunshine State, where sports serve as more than mere games, a recent state analysis sheds light on the lingering impacts of the COVID-19 pandemic, resonating through the stands and the state’s financial landscape.
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A recent analysis by the Legislature’s Office of Economic & Demographic Research revealed a stark reality: fewer fans meant decreased economic returns, attributed largely to the absence of fans in stadiums and arenas.
Due to pandemic restrictions, numerous sports events were held without fans or with limited attendance, resulting in adverse financial outcomes for publicly funded sports venues.
The analysis examined the fiscal years 2019-2020, 2020-2021, and 2021-2022, during which the pandemic triggered temporary declines in state tourism starting in early 2020.
The Florida Sports Foundation was tasked with examining the performance of various sports-related grants and incentives.
The findings were severe: a decline in return on investment across the board.
The foundation saw its return on investment diminish from $4.27 to $1.21 for every dollar spent. Professional sports incentives and spring training programs suffered even more, with losses of 80 and 90 cents for every dollar invested.
Although the grant program played a less financially significant role than stadium incentives, it nonetheless supported 361 sporting events over three years, averaging $21,527 per event.
The analysis estimated that these grants resulted in 502,263 out-of-state visitors, contributing to 2.495 million hotel nights. However, this figure marked a substantial 23% decrease compared to the pre-pandemic period.
Despite challenges, funding for eight stadiums has been secured through 30-year deals, with projections of drawing up to $2 million annually in sales-tax dollars.
With funding tied to long-term deals, stadiums across the state received substantial support, albeit with diminishing returns.
The stadiums included in this deal are Hard Rock Stadium located in Miami-Dade County, EverBank Stadium located in Jacksonville, Tropicana Field located in St. Petersburg, Amalie Arena located in Tampa, Amerant Bank Arena located in Broward County, Raymond James Stadium located in Tampa, Kaseya Center located in Miami and the Kia Center located in Orlando.
“Participatory sporting events have less of a discretionary element than events that are primarily designed for the spectator’s entertainment value --- this feature, to a degree, buffered the program from some of the worst effects from the COVID health crisis,” the analysis stated.
The report highlighted major venues were all slated to complete payments by 2028, with the Kia Center deal stretching to 2038.
Traditional draws like spring training games saw a significant 50% decrease in attendance, further straining the economic outlook.
Looking ahead, historical data projections offer a glimmer of hope, with the analysis predicting that the grant program has the potential to generate an annual return of $4.30. Meanwhile, professional stadium incentives and spring training sites are expected to yield a positive return of 75 cents and 54 cents, respectively.
As Florida navigates the ongoing pandemic, the sports economy remains a key area of focus, with stakeholders seeking to revive its once-vibrant landscape and restore economic vitality to the Sunshine State.
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