Such projects typically demand some public funding, often gathered by team owners in the name of development and revitalization of the area around the new facility.

Construction continues on the new $563 million roof on BC Place (Image: Waferboard from Flickr)

In Edmonton, expectations are high that the new arena will revitalize a morose downtown core. Meanwhile, a renovated BC Place is expected to spur a multi-building hotel, casino and condominium complex that is expected to generate 2,000 jobs, according to a recent Vancouver Sun story.

But such rosy economic estimates typically overstate the economic benefits of new stadiums by overlooking what economists call opportunity cost.

This means that when sports fans spend money on tickets, concessions and merchandise at a stadium on game-day, another business (like a pub, movie theatre or coffee shop ) where they could have spent that same money is losing out.

This is more than just an abstract pie-in-the-sky theory. When the 2004/2005 NHL season was cancelled due to an owner lockout hockey-related businesses inevitably suffered, but arenas filled their seats with more family events or concerts. And hockey fans and their friends found other stuff to do: they watched movies, visited restaurants, casinos or went wherever else instead. Nobody threw their money away; they just chose to spend it somewhere else.

Rexall Place in Edmonton is slated to be replaced by $450-million downtown arena (image: Wikipedia)

Moreover, the total construction cost can’t be calculated even when construction finishes. Venues with little over a decade’s worth of wear like Nationwide Arena in Columbus, both the Great American Ball Park and Paul Brown Stadium in Cincinnati, and Conseco Fieldhouse in Indianapolis have sought public dollars to cover significant financial shortfalls.

This isn’t to say that government shouldn’t offer some funding for arenas. But they should harbor realistic expectations when they choose to spend tax dollars on a major-league sports arena.

A monument for the world to see? Sure.

A technological marvel? Potentially.

A place to build community? Hopefully.

A driver of the local economy? Not really.

The bottom line for cities: build the stadium, even fund some of it if your citizens are willing; but don’t expect an economic miracle on ice (or the field).

So, partially as a year in review, and partially as an indicator of what this blog is about, here are five occasions  from this past year when sports and politics collided in Canada.

Victories at the Vancouver 2010 Olympics produced public displays of Canadian patriotism (image: John Bolwitt from flickr)

1) Vancouver Games inspire cross-country nationalism

As fans gathered around outdoor screens in Yaletown and Robson Square to watch the games, wave flags and sport the ubiquitous red mittens in the warm February afternoons, Canadians openly expressed their patriotism in ways not often seen in a country noted for its modesty.

2)    Edmonton debates a new arena

Oiler owner Daryl Katz spent last summer selling Edmontonians on his vision of a new arena that he argues will revitalize the city’s downtown core. The catch? How financial responsibility for the $400-million arena will be divided between Katz and taxpayers. With formal negotiations between ownership and city council just beginning, debate over Edmonton’s new arena continues well into 2011.

3)    Quebec City chases federal money for new arena

Quebec City is looking to replace the 62-year-old Le Colisée - home of the Nordiques between 1972 and 1995 (image: Norm & Debra from Flickr)

Quebec City continued its attempt to lure an NHL team back to town when it unveiled plans for a new arena that would also anchor a forthcoming bid to host the Winter Olympics. With the provincial and local governments committed to funding 55 per cent of the $400-million project, Mayor Regis Labeaume turned to the federal government to cover the remaining cost. As other cities pursuing new sports arenas looked on, Prime Minister Harper avoided a political crises when he toned down talk of federal funding despite a golden opportunity to curry favour with Quebec voters.

4) Women ski jumpers excluded from Vancouver 2010 Olympics

Few sports are gender-specific anymore but when a group of female ski jumpers made its case to compete at the Vancouver games, Olympic officials turned them down : citing a perceived lack of global appeal and competitive balance in explanation. Court challenges followed, but the exclusion stood despite perceptions of old-boyism and gender inequality.

5)    Simon Fraser University goes south to NCAA competition

Seeking tougher competition and a return to its American athletic roots, SFU left the Canadian amateur sports system and began competition in division II of the U.S.-based National Collegiate Athletic Association in September. Clan teams have struggled early, but the move provoked questions about scholarship regulations and the level of competition found in Canadian varsity sports.