Professional sports teams are increasingly venturing into real estate development, constructing luxury apartments and shopping malls. In the past, teams relied on ticket sales, concessions, and TV deals for revenue, but now team owners are turning to real estate to generate additional income and increase the value of their franchises. These owners have constructed new stadiums and arenas, often with taxpayer funding, and as part of agreements with cities and states, they have been granted the rights to transform the surrounding land into various commercial properties. The trend of teams engaging in real estate has significant implications for both sports leagues and urban areas, with teams now functioning as real estate investments for billionaire owners, and stadiums serving as anchors for mixed-use shopping and entertainment districts. This shift has been facilitated by teams' market power, which comes from increased fan interest and leagues' control over supply. As a result, cities and states compete with each other to offer the best packages to team owners, enabling them to obtain generous public funding and favorable development agreements. However, studies show that building stadiums is not a worthwhile public investment. The recent trend in sports stadium construction is focused on mixed-use development in urban areas, with stadiums moving from suburban locations to downtown areas. Camden Yards in Baltimore, which opened in 1992, was a pivotal example of this shift, inspiring the construction of smaller, retro-style stadiums. In addition to the stadiums themselves, the surrounding real estate development has become a crucial component of these projects. New stadiums are now typically part of mixed-use complexes, featuring luxury apartments, retail spaces, and other amenities. Examples include SoFi Stadium in California, Truist Park in Atlanta, and Chase Center in San Francisco. The Texas Rangers have even developed a luxury apartment building and hotel around Globe Light Field. Overall, team owners recognize the financial potential of real estate development and are leveraging it to maximize their profits.
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