Oakland residents and businesses would reap $3.05 billion in economic benefits over the first 10 years from the construction and operation of a new privately financed Oakland A’s stadium and the increased attendance and game day spending that would come with it, according to an analysis released today (June 20) by the Bay Area Council Economic Institute. Building the stadium would also create 2,000 construction jobs, many of which would go to local workers and businesses under hiring agreements expected to accompany the project.
“A new Athletics baseball stadium would be very, very good for Oakland,” said Dr. Micah Weinberg, President of the Bay Area Council Economic Institute. “These types of signature projects come along only once every couple of generations. A new ballpark represents a significant and important investment in Oakland that will generate tremendous buzz and excitement, creating local jobs, supporting local businesses and spurring even more investment in the city.”
The analysis breaks down the economic impacts from the first 10 years of stadium operations into three categories, including:
- $768 million from construction and related spending
- $1.54 billion from game-day spending
- $742 million from ballpark operations
The study does not identify a specific location in Oakland for any new stadium and does not include estimates for the considerable additional economic benefits from new commercial development and other business activity that would likely be spurred by the arrival of a new ballpark. Noting that Major League Baseball teams can serve a very public purpose, the analysis said “the stadiums that they play in are often viewed as a public amenity, which can increase civic pride, attract new residents and businesses to a city, and act as a tool for neighborhood revitalization.”
The excitement around a new stadium can also lead to a significant boost in attendance, which is a major factor in pushing up game-day spending on tickets, merchandise, food concessions and luxury suites. The study estimates that a new Athletics stadium could lift annual attendance from its 2016 level of 1.5 million to 2.55 million in the first year of operation before settling back to an average of 2.4 million in subsequent years. That estimate is based on historical data from 12 other teams that have built new ballparks since 1998.
For example, when the San Francisco Giants moved from their windy, isolated stadium at Candlestick Point south of the city to a more intimate ballpark downtown the team saw attendance increase from 1.2 million in 1995 to 3.3 million in the first year at their new facility in 2000. Similar increases have been seen in Minnesota, San Diego, Milwaukee, and Pittsburgh when those teams built new ballparks. Winning also helps bring in more fans, and the study acknowledges that the A’s success on the field would impact attendance totals.
The study is careful to use a variety of methods to identify just those benefits that would accrue exclusively to Oakland, and excludes benefits that would flow outside the city. For example, the study assumes that 25 percent of the estimated cost to build a new stadium would likely flow to vendors outside Oakland. The analysis also does not reflect possible increases in the significant community and philanthropic contributions the club already makes in Oakland and the East Bay.