By Sydney Kaine
On June 18th, 2016 groundbreaking and construction began for the new Wisconsin Entertainment and Sports Center. The arena will house the Milwaukee Bucks as well as the Marquette Golden Eagles men’s basketball team. The construction cost of this building is $524 million and is expected to open early 2018. The Milwaukee city council has signed a 30-year lease to pay off the expenses and well as Marquette University for their share of home games. 
Many people are content with the BMO Harris Bradley Center. However, not many are unaware that the BMO Harris Bradley Center is 28 years old and one of the oldest active complex centers in the NBA. Besides the fact that the new arena will be another cool building in Milwaukee, there are multiple economic benefits for the city has a whole.
According to a study done by the Metropolitan Milwaukee Association of Commerce, “Milwaukee Bucks’ proposed sports and entertainment district could yield approximately 2,100 permanent non-construction, non-arena jobs. These jobs would be on top of the 14,000 construction jobs projected for the development by the construction group Building Advantage, and the sports and operations jobs at the arena that would be created and maintained by keeping the Milwaukee Bucks in town.” The number of jobs provided through the production of this arena is a marginal benefit, the additional benefit arising from a unit increase in a particular activity.
Not only will the arena provide jobs for citizens but it will appeal to a new crowd, causing there to be an increase in profit for the Bucks and other associations. Just by looking at the blueprints for the arena, I get excited and want to go to a Buck’s game. Aside from games the arena will also house concerts, hockey games, and ice shows such as Disney on Ice!
As with any large decision comes marginal costs, the additional benefit arising from a unit increase in a particular activity. Unlike the Golden state Warriors’ arena that was paid in full by 20 investors, tax payers money in addition to contributors such as the Milwaukee Bucks and Herb Kohl will pay for the funding of the arena. Some people are upset about the change in the increase of taxes.
The opportunity cost of building this multi-purpose, high-tech building is that fewer taxes will go to other needed areas such as improving our highways. However, the opportunity cost of keeping the BMO Harris Center and not building this facility would mean losing out on new profit and thousands of jobs. The marginal benefits outway the marginal costs, therefore, making this arena a positive economic decision for the greater Milwaukee area.
To see the Buck’s arena preview and vision yourself, please click here to watch a short YouTube video.
Works Cited:
"Wisconsin Entertainment and Sports Center." Wikipedia. Wikimedia Foundation, 18 Feb. 2017. Web. 19 Feb. 2017.
"Bucks Release New Arena Renderings Ahead of Design Submission to City." NBA. N.p., n.d. Web. 19 Feb. 2017.
Murphy , Bruce. "Murphy's Law: 10 Key Issues in NBA Arena Debate." Urban Milwaukee. N.p., 24 Apr. 2014. Web. 19 Feb. 2017.
It is very interesting to see all of the marginal benefits such as job creation and income that would have gone elsewhere if the taxpayers decided to not fund this project. It would have been interesting to see how much more tourism the new arena will attract in terms of other teams especially. I know that in the past we would not get many away fans because Milwaukee is not a hot tourist spot and our arena was below average. Now with the improvements maybe there will be more. It would also be interesting to see how Marquette and the Admirals are doing with the new arena being built and how they will be doing financially when they will have to pay for their rights to the building.
ReplyDeleteThe overall opportunity cost creates a great opportunity for many people to get new jobs and many families or individuals to enjoy themselves. With the amount of business that you stated that this building alone gets, I'm sure within that 30 years they will be able to pay the 524 million with ease. Aside from that I will have to disagree with you that many people may be upset about the tax increase and I do believe they should be because not everyone goes to BMO or will go to this new facility so increasing tax doesn't seem very fair.
ReplyDeleteKeeping the Bucks here in Milwaukee was vital, residents have a professional team to root for practically year round with the Brewers playing from April - September, and the Bucks October - April. If the Bucks didn't have a new arena deal in place the NBA said they would've been relocated, most likely to Seattle or Las Vegas. We aren't as lucky as the Warriors to have a new arena paid for in full by private investors, but if keeping the Bucks means everybody gets taxed just a small percentage I'm okay with that. Especially because the Miller Park tax should be ending within the next year or two, so the five county area doesn't really get hit with the double whammy. If a new arena means keeping the Bucks I'm all for it. #BucksIn6
ReplyDeleteI think it's good the Bucks are getting a new arena, the Bradley Center is really old and outdated. The new arena doesn't just bring in more fans it's also helping the community by giving the people more jobs. Let's hope this new arena gives the bucks new energy for the second half of the season
ReplyDeleteOne of the main reasons that the new arena is being built is in order for more people to enjoy going to Bucks game. In my opinion building a new arena would interest more people to go to the games which would also help income. Although it would be tough for some people in Milwaukee who might have to pay more in taxes since the arena is being built by then. Also for people living nearby it would be difficult since there may be more traffic for them and more noise. But this would also give them the opportunity to not travel as far if they are planning on going to an event happening here. For many of the businesses near or around the new location it would also help them since people may go to there business before or after they attend a basketball game or concert.
ReplyDeleteI feel like if the Bucks had to leave the City of Milwaukee, it would be very bad for the culture and love of the city. The new bucks arena will be able to give more people that are out of work jobs, more money from sales, and kind of a new identity that the bucks definitely need. It is not good that less tax money will be going towards things like roads, etc., but I feel like most can agree that the marginal benefit of the new bucks arena definitely outdoes the marginal cost of it.
ReplyDeleteIts good that the bucks are staying in Milwaukee since we don't have very many sports teams here. I never saw the benefits of the new arena everyone just says its bad because it will raise taxes, but seeing that there is good things to come of the new arena maybe it is a good idea to build it.
ReplyDeleteI knew this new arena would bring an increase it interest, however, you brought up an interesting point in discussing the amount of job growth and opportunities that there would be. What would they be doing with the BMO Harris Bradley Center if they make this new arena? Would they tear it down or keep it up? And if they tear it down to make something else, there would be a fair cost for that, so would the profit from this new arena be enough to outweigh what the cost would be to get rid of the Bradley Center?
ReplyDeleteI also think that this new arena was a great idea! I'm sure many taxpayers (especially those that don't attend basketball games) would be more frustrated about the increase in taxes, but luckily this facility will be able to host much more than just basketball games. Nearly everyone in the Milwaukee area and teams from across the nation will be able to get great use out of the facility, whether it be for a game or a concert. In addition, by incorporating a unique design like the architects did, it intrigues a lot more people and will encourage them to go check it out. With the increase in jobs and the increase amount of money that people would be spending to attend events at the new Bucks arena, economically it is a great decision!
ReplyDeleteThe BMO Harris Bradley Center is very old. I was surprised that it is 28 years old and one of the oldest complex centers in the NBA. I agree that building this new arena would be more beneficial and outweigh the cost of it. Not only will it provide people with more jobs, but also, building a new and modern arena will attract more individuals to come to games or events held there. It will also provide tourists with another thing to do/visit when coming to Milwaukee. Keeping the Bucks here is crucial and if that means having a new arena and people being taxed to pay for it, in the long run, it will benefit everyone.
ReplyDeleteI am one of the people who are content with the Bradley Center simply because I have been attending Marquette games since I was three, but I must say your article may have swayed me in the opposing direction. I was not aware of the thousands of jobs that will arise from this facility and I am excited to see what it does for the community. I would like to see what the net income will be for this arena after it has been around as long as the Bradley Center was.
ReplyDeleteWhile there will be new job opportunities for people in Milwaukee, taxes will rise in order to afford the new arena. It's unfair for those that don't care about basketball or the Bucks to have to pay to build an arena we already have. However, it will be updated and beneficial for the profit of ticket sales in the upcoming years. There are many opportunity costs and I don't necessarily agree that spending $524 million on a new stadium is the best way to spend our money. We could use that money to work on something beneficial for our environment that could create jobs (therefore helping our economy).
ReplyDeleteI also think it's a good idea for the Buck to get a new arena. This is because it benefits the Bucks, community, as well as Milwaukee as a whole. Getting this new arena will provide a lot of jobs which will help the community and people looking for jobs. This will help the bucks by getting them a new place they call home, this new arena will attract a lot more fans. It's almost a new life for basketball in Milwaukee with the young team they currently have, changing the jerseys, and changing the logo. This will impact the economy because of all the profit and will determine a big opportunity cost by having all of those new jobs for the community. This will help Milwaukee as a whole because a lot more people will be engaged and want to go to the Bucks game. This new arena will give Milwaukee a new attraction and a new building.
ReplyDeleteI do believe that the benefits outweigh the costs, however I can't help but understand where people are coming from when they get upset about the costs they are required to pay- especially if they deem the project unnecessary. Also, as mentioned, the Bradley Center is twenty-eight years old. This surprises me that this is one of the oldest complexes- how often are other's upgraded/ reconstructed? One thing that I didn't think about was the jobs that it will create. I guess rather than bringing workers together to work on the project, halting other work, it instead creates more jobs. Overall, I understand how this could help improve our economy. The drawback is the expense. Hopefully, it will pay off because of Milwaukee's newest attraction, and the games will be more enjoyable for everyone if the building is as elaborate as it looks.
ReplyDeleteI do not think that it is necessary for the bucks to be getting a new stadium but I do see benefits for other people with a new stadium being built. The number one benefit that will help people out will be the number of people they will need to build the arena itself. With a stadium that size they are going to need a lot of help. I also think that with the new arena it will bring more fans to the games, with that being said...since there will be a new stadium will that mean the price of tickets to go to a basketball game increase? Also with the new stadium how is this going to effect traffic in Milwaukee. Even though everyone wants a new stadium I do see how the building of the stadium will have benefits and downfalls.
ReplyDeleteThis seems like a good chance for the bucks to get something good for once. The opportunity cost of this building seems to work out for nearly everyone and help gain more visitors to the stadium. Also nice that the bucks will be making money off of the building so they don't instantly go broke and have to find drastic measures to save the team. I agree that there are more marginal benefits than costs because there seems to be zero problems so far with in the project itself.
ReplyDeleteAs a whole, the proposed arena would be a new, exciting piece to add to Milwaukee, but also create more excitement for games, simply because of a modernized stadium. I personally think this is a good idea, as the old arena, is aging, but also to get rid of the dreary look that it has. The new arena will bring more fans and visitors, and be an economically good decision. Although, it is important to note that these new jobs are temporary and while they do pose a good solution to those looking for work, it is not a permanent fix. So even though tax payers are paying in part for this new stadium, it is good to know that this economic decision would be one that could be very potential.
ReplyDeleteI think that it is a great idea for the Bucks to get a new arena. Like you said, this will create many jobs and job opportunities for the people who need it. Also, if the Bucks would have decided not to build a new arena and get relocated, the city, economically speaking, would have less income and also less jobs. This new arena will help Milwaukee for the better.
ReplyDeleteThough $524 million is a lot of money to be spending on a new recreation sports center, it's well worth the cost. The creation of a new stadium does cause a rise in taxes, but it also provides more jobs and gives people more incentive to come to events that happen within the building. Even if they don’t necessarily like basketball, people are still more likely to go to a game in a new center rather than an old one, if for nothing else to see what’s so good about the new stadium. This combination of more money entering the local economy from people buying tickets, foods and such at the new center and an increase in employment opportunities will easily end up outweighing the cost of building the center as times passes.
ReplyDeleteI completely agree that building the new bucks arena will be a good investment for Milwaukee. I can see how some people might not view it that way, because they might not plan to utilize any of events or games going on there, but even if they don’t go to the games they can still benefit economically from the arena. The arena will benefit the area as a whole by adding another “attraction” to Milwaukee and bringing people from all over the state to Milwaukee, which in turn will help hotels, small businesses in the area, and restaurants. Having a bigger arena will also draw bigger more famous artists to the arena have their concerts there; which for some might be worth the extra taxes. Although it is a sports arena, it will offer a lot more than just basketball which could attract a wide audience to the area and will economically benefit the area. Overall the marginal benefit of building the arena will outweigh the marginal cost.
ReplyDeleteAll of the positives of building the new arena I feel makes this project worth it. The economic benefits the arena would bring to the city would be much more than the current Bradley Center as it would create more jobs and bring in good amounts of profit. If we were not get an updated arena then it could be decided that the Bucks would need to move to a different city which would be devastating not only to fans, but to the economy. The profits of the Bucks would be lost and their would be one less option for sports fans to spend their money on to enjoy the game. I feel like many people don’t understand this part which is why they could be so upset with the increased taxing. The increase in taxes is a short term negative while the new Bucks arena will bring long term success to the city of Milwaukee which I feel is a worthwhile trade off.
ReplyDeleteJaeger H
I agree that the new bucks arena will be cool but it has a huge opportunity cost. It takes away many people’s jobs which cause less profit for the organization. It also means we will have to do something to the BMO Harris Bradley Center, whether it is taking it down or renovating it for another sports team-the Admirals,etc. Another opportunity cost lost would be time. It will take a long time for the new arena to be built which during that time can be spent on bring in consumers. Overall I think we should build the new arena but it will cause a decrease in revenue.
ReplyDeleteThis was a good example of how the decisions made by the government can both positively and negatively affect everyday people. This certainly would improve the society's happiness by providing both jobs and entertainment to the citizens, while having a minor drawback on people disagreeing on how their tax dollars are being spent. You clearly described how this is mostly a good thing for the economy with clear and rewarding evidence which made me have to agree that building the arena wasn't a poor decision.
ReplyDeleteOver the past few years Milwaukee has seen a major increase in investment spending with the trolley car system and now the entertainment district which is including a new stadium for the Bucks. Not only is this an increase in GDP as more production will be coming out of Milwaukee but it also influence the MPS and MPC for the people in the city. The spending multiplier will take into effect and overtime we will see how impactful the $524 million investment on the stadium and the $128 million investment on the streetcar are on the economy of Milwaukee.
ReplyDeleteI think it was really important to get the Bucks and the city a new arena and some new attractions. The Bucks most likely would have left if a deal was not complete and this would have been a terrible loss for the city. Taxpayers are paying like 60 cents a year. I think this is well worth the 60 cents.
ReplyDeleteThe new stadium is very helpful to Milwaukee's economy as a whole. The increase in government spending increases the GDP. This causes an increase in aggregate demand which also will raise the price level for the city of Milwaukee. Since this is only one project, nominal wages will rise pretty soon which will cause the economy to shift back to long run equilibrium. The increase in employment in the short run is worth the increase in price level.
ReplyDeleteI am in full support in the new Bucks arena. Not only does it keep the Mucks in Milwaukee, it also provides many jobs to workers in Milwaukee. This arena will transform Milwaukee into a more vibrant downtown. Although some of the stadium will be paid with taxpayer's dollars, this opportunity will help Milwaukee's economy which is a good use of taxpayer dollars.
ReplyDeleteI am very excited for the construction of this new arena. For starters, it creates tons of hype for future basketball games and other events. This is almost a gaurentee to drive ticket sales and profits up. Not only does it increase profits, it also creates tons of new construction jobs and other jobs surrounding the arena. Finally, it also promotes more events like concerts and more.
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