The financing of sport facilities is often justified by the economic benefits they can bring to local communities. During times of global recession or crises like COVID-19, when governments may focus on stimulating the economy through spending, investments in sports facilities and related infrastructure can be viewed as essential for economic recovery rather than a luxury.

To begin, explore the Tax Reform Act of 1986 and discuss its impact on the financing and development of sport facilities. Consider whether the law acted as a financial benefit or a hindrance and justify your response by analyzing both historical trends and potential future implications of regulations like this on facility financing and development.

Next, find an economic impact analysis or report for a sport facility that is not included in the module’s Reading and Resources section, though those can serve as examples. Then analyze what “economic impact” entails. In your analysis, include the benefits in terms of construction, employment, supply chains, local income, and the attraction of new events. Additionally, explain how to ensure a transparent audit trail for the economic impact data and identify the key drivers behind these impacts.