The application of corporate real estate strategies to sport facilities

Abstract

Over the last two decades the understanding of sport facilities in North America and Europe has changed from governmental responsibility to capital requirement of a private business. This mind-shift has resulted in an increased private share in financing and public-private partnerships in stadium ownership and operation. As professional sport teams are the primary users of sport facilities, a user contribution to the financing is an evident suggestion. Additionally, sport clubs are faced with a variety of real estate decisions. Any corporate real estate decision, however, has to be aligned with the overall business strategy. This strategy alignment is even more mandatory for sport facilities that differ significantly from other commercial real estate types e.g. in terms of tradability, utilization and risk. This paper takes a new look at sport facilities and analyses the implications of CRE strategies for the development, financing and management of sport facilities considering their unique characteristics.