Searching for Solutions in Indy: Sporting events fuel economy
INDIANAPOLIS — St. Louis has the Cardinals, Blues and now St. Louis City SC. The Lou is a sports city, but it lags behind some cities when it comes to hosting national and international sporting events.
As part of 5 On Your Side’s year-long “Searching for Solutions” series, we’re visiting cities across the country to find answers to St. Louis’ problems by showing how other cities are dealing with similar problems.
In April, “Searching for Solutions” took us to Indianapolis, Indiana. Attracting major sporting events has been a priority for Indy. It’s an economic strategy that keeps the Circle City at the forefront.
Stepping into Stout’s Shoes on Massachusetts Avenue in downtown Indianapolis is like stepping back in time. The fourth-generation family business has been in the same location since 1886. Stephanie Stout, who owns it, says the company has been a constant even when the neighborhood has had bad luck.
“It was really very undesirable at the time. It would really surprise people. It was a bit what they would call a skid row type course,” Stout said.
But in the last 25+ years, the area has found a secure footing again.
“Mass Ave has become the premier of Indianapolis. It’s the shopping district for dining, art and culture,” Stout said.
The change is mainly due to sporting events. As early as 1979, the mayor and community leaders developed the vision of using sport as an economic engine. They established the country’s first sports commission. It’s called Indiana Sports Corp. Brett Kramer is senior communications manager for Indiana Sports Corp.
“So our role in sports strategy is to attract sporting events to the city to help us out of the economic landscape. So fill the hotels, keep the convention center moving, and keep the restaurants lively and full of guests,” Kramer said.
Now the nation’s largest athletic commission, it’s a nonprofit organization that has brought more than 500 sporting events to the city, including the NCAA Men’s Basketball Tournament, US Olympic Diving Tournaments, Big Ten Football and Basketball, and P&G Gymnastics -Championship. The organization states that the total economic impact is $4 billion.
How is a city selected to host an event? It depends on a bidding process. Potential host cities present packages detailing amenities, services and financial incentives.
One of Indianpolis’ recent sports bids featured Indy and St. Louis. Both cities wanted to host the 2024 Olympic swimming competitions in the United States. T. Louis offered to host the America’s Center Dome. Indy offered to host Lucas Oil Stadium, where the Colts play. USA Swimming chose Indianapolis.
Both cities were willing to build swimming pools inside the stadiums.
“Lucas Oil Stadium has just undergone a renovation and transitioned from video boards to in-house technology, so there is continued investment in this facility,” Kramer said.
The St. Louis Sports Commission, which submitted the bid, says our city has lost $75 million to $100 million in potential revenue. And when it comes to money, Indy wins again. In 2022, Indiana Sports Corp’s annual operating budget was $9 million compared to the St. Louis Sports Commission’s operating budget of $1.7 million.
And Indy’s bidding success is only likely to increase. A new state law created a Sports and Tourism Promotion Fund that would provide millions of dollars in state funding to Indiana Sports Corp.
“So I think our lawmakers are realizing that we have to do something to stay competitive,” Kramer said. “It’s not final right now, but it looks like around 10 million over two years.”
That means Indiana Sports Corp’s annual budget will increase by more than 50 percent. By comparison, the St. Louis Sports Commission said it receives no government funding to advertise events. But the state of Missouri gives him $5 for every ticket sold after the event is booked, which works out to a few hundred thousand dollars a year at most.
The new sovereign wealth fund promises to make Indy an even bigger force at the bidding table. And give local businesses like Stout’s Shoes a head start when it comes to pedestrian traffic in downtown Indy.
“Families and viewers are looking for something to do,” Stout said, “and who doesn’t love a good pair of shoes? So it means a lot to us.”
It’s the Circle City’s economic endurance through sport. It’s a long-standing vision that’s making great strides.
“It’s just going to be a huge boost for the city,” Stout said.
Bidding on sports is just something Indianapolis is good at. In 1997, the NCAA decided to leave Kansas City. The bids came in and in the end, Indianapolis prevailed over several other cities. Indy offered a $45 million stimulus package that appeared to have paid off.
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