Positive Economic Impact of Private Sports Complexes

Private amateur sports complexes, including basketball, volleyball, and multi-sport facilities—have emerged as powerful local economic engines across the United States. By hosting youth and adult tournaments, these venues catalyze tourism spending on hotels, restaurants, retail, and related services. Increasingly, private investors and municipalities are collaborating through public-private partnerships (P3s) to develop such complexes, aiming to capture both the direct financial returns and broader quality-of-life benefits they deliver.

This article synthesizes research findings, real-world case studies, and economic data to evaluate the drivers, outcomes, and resilience of private sports complexes. The evidence suggests that when executed strategically, these facilities deliver measurable and durable economic benefits, creating a compelling case for both private investment and public support.

Why Investors Fund Sports Complexes

Over the past decade, the landscape of community recreation and sports tourism has been transformed by the rise of private sports complexes. Fueled by surging demand for youth and amateur sports, these facilities have proven to be more than just recreational spaces—they are catalysts for local economic growth. This paper explores why investors and cities pursue these projects, where the greatest economic impacts materialize, and how such complexes perform in periods of economic stress.

Multiple Revenue Streams and Stable Demand

Private sports complexes generate income across a diversified portfolio of activities, including:

• League play, tournaments, and camps

• Memberships and facility rentals

• Concessions, pro shops, fitness areas

• On-site lodging or hospitality services

Youth sports spending alone has topped $9 billion since 2017. Families routinely spend hundreds of dollars per month on their children’s sports participation, with travel tournaments commanding a premium share. Notably, youth sports tourism is often described as “recession-resistant”—during the 2008–2009 downturn, it remained one of the few travel sectors that did not contract.

Anchor for Mixed-Use Developments

Sports complexes function as “anchor tenants” akin to malls or entertainment centers, driving foot traffic to adjacent retail, dining, and residential developments. For example:

AdventHealth Sports Park, Overland Park, KS:
This 260,000-square-foot facility catalyzed a 270,000-square-foot retail development and new housing nearby, creating a synergistic ecosystem of economic activity.

Proof of Profitability

Feasibility studies consistently show positive operating results or break-even projections.

Highlights include:

Palm Coast, FL: A proposed $93 million complex projected $79 million in first-year economic impact and a $500,000 operating profit.

Rise Indoor Sports, Bermuda Run, NC: A $15.9 million facility is expected to generate $7–$8 million per year in local impact.

Private investors also benefit from ancillary revenue such as naming rights, sponsorships, and memberships, while municipalities often help reduce investor risk through favorable land leases.

Public-Private Partnerships (P3s) Reduce Risk

Many sports complexes are developed as P3s, enabling risk-sharing between public and private stakeholders. For example, Palm Coast’s facility involves a private developer building on publicly leased land, with the city’s lease payments structured to match facility revenues. Such models allow private operators to secure long-term contracts and stabilize cash flow, while municipalities benefit from predictable economic returns.

Benefits to Cities and Counties

Boosts to Tourism Spending

Sports complexes attract nonlocal visitors who spend heavily on lodging, dining, and retail.

Case examples:

Helena, MT: $1.36 million in annual out-of-area visitor spending, with 34% on lodging and 20% on retail.

Spooky Nook, Hamilton, OH: Local restaurants and bars reported record sales during early tournaments.

In 2021 alone, youth sports tourism accounted for 66.5 million hotel nights, making it a major driver of hospitality sector growth.

Job Creation and Tax Revenue

Visitor spending translates into local employment and tax receipts:

Helena, MT: $1.36 million in visitor spending supported 20 jobs and $488,000 in worker income.

Adventist Fieldhouse, MD: 12 tournaments generated $25 million in direct spending and $1.2 million in local tax revenue.

Hotel occupancy and sales taxes frequently underpin facility financing, with municipalities confident that event-driven revenues will sustain debt service.

Quality of Life and Community Development

Beyond economic metrics, sports complexes enhance community livability and attract residents. For example:

Majestic Park, Hot Springs, AR: Following an $8.5 million renovation, the facility now hosts large-scale events that were previously absent, creating a new revenue stream and energizing downtown businesses.

Multi-Use Benefits: Many facilities also host concerts, graduations, and esports, reinforcing their role as civic hubs.

Case Studies

Rock Hill Sports & Events Center, SC

This city-owned facility has become a top tournament destination, benefiting local businesses and municipal budgets.

Size: 170,000 sqft

Visitors (2022–23): 200,000

Local economic impact: $56 million

Hotel-room nights: 130,000

Rise Indoor Sports, NC

A privately operated facility demonstrating that even regional-scale complexes can deliver substantial economic gains.

Size: 123,000 sqft

Construction cost: $16 million

Annual local impact: $7–$8 million

Where the Big Impacts Occur

Research shows that the largest economic gains are concentrated in:

• Lodging (30–40%)

• Food service (15–20%)

• Retail (sports equipment, convenience goods)

For example, after a major volleyball event at Spooky Nook, local restaurants and brewpubs reported record-breaking weekend sales. Additionally, facility construction delivers one-time economic boosts, but long-term impacts stem overwhelmingly from ongoing tourism and visitor spending.

Resilience in Slow Economic Times

Youth sports complexes are unusually resilient to economic downturns:

• 2008–2009 Recession:
  Youth sports travel remained steady despite broader tourism declines.

• COVID-19 Recovery:
  After a 46% decline in 2020, youth sports travel rebounded by 53% in 2021, as families shifted to regional events before returning to national tournaments.

The diversified revenue streams and flexible programming of most complexes help them adapt to changing conditions, while public financial support (via bonds or taxes) helps sustain operations.

Summary of Findings

The evidence from case studies and economic analyses leads to several clear conclusions:

• Private sports complexes can generate robust, multi-source revenues for investors.

• Municipalities benefit disproportionately through hotel, restaurant, and retail spending, plus job creation and tax revenues.

• The facilities show notable resilience during economic downturns, underpinned by the priority parents place on youth sports.

• Both private and public stakeholders increasingly view these projects as long-term economic assets with quality-of-life benefits that extend beyond balance sheets.

Works Cited

Sports Events and Tourism Association (Sports ETA)
→ https://www.sportseta.org
(State of the Industry Report 2023)

Halff Associates (Palm Coast Sports Complex Feasibility Study)
→ https://halff.com
(Look under “Projects” or “Publications”)

Sports Business Journal (Youth Sports Prove Recession-Proof)
→ https://www.sportsbusinessjournal.com
(Search article archives for “Youth Sports Recession-Proof”)

City of Rock Hill, South Carolina
→ https://www.cityofrockhill.com
(Sports & Events Center impact report typically found under “Parks, Recreation & Tourism”)

Synergy Sports Global (Rise Indoor Sports Economic Impact Analysis)
→ https://www.synergysportsglobal.com
(Check “Case Studies” or “Impact Reports” sections)

Helena Area Chamber of Commerce (Helena, Montana)
→ https://www.helenachamber.com
(Look for economic impact or sports complex studies under “Economic Development”)

AdventHealth Sports Park, Overland Park, Kansas
→ https://www.opkansas.org
(City site; AdventHealth Sports Park reports sometimes posted under parks/recreation)

Majestic Park, Hot Springs, Arkansas
→ https://majesticpark.org
(Tourism and Economic Development Impact Report)