Key concepts:
Local governments- are the closest to the consumer and provides the most services. They will generally allocate 2% of an annual operating budget to spend on recreation services including sport. This does not include special requests such as new stadiums. County government is the next level up and they also allocate money towards sport. A problem with government spending is that when a team threatens to leave the town due to not getting money granted some governments agree to such costs like a stadium.
This goes along with the economic principle that governments can sometimes improve market outcomes. When a market fails to allocate resources efficiently, the government can change the outcome through public policy.
Local governments- are the closest to the consumer and provides the most services. They will generally allocate 2% of an annual operating budget to spend on recreation services including sport. This does not include special requests such as new stadiums. County government is the next level up and they also allocate money towards sport. A problem with government spending is that when a team threatens to leave the town due to not getting money granted some governments agree to such costs like a stadium.
This goes along with the economic principle that governments can sometimes improve market outcomes. When a market fails to allocate resources efficiently, the government can change the outcome through public policy.
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