Ravens Insider: Orioles, Ravens spur 9-figure spending in Maryland. Is it enough?

[ExtremeRavens]

Maryland’s long-running investment in the Orioles and Ravens raises questions about whether the statewide benefits of professional teams match their reputations — even as reports cite hundreds of millions of dollars in annual economic activity tied to both franchises.

Maryland Stadium Authority reports — obtained by The Baltimore Sun through a Public Information Act request — outline the franchises’ financial impacts in 2021, the only year for which the agency would provide data.

Analyses by Crossroads Consulting found the Orioles and Ravens generated a combined $857 million in economic activity that year and supported more than 9,000 jobs.

The Ravens accounted for the larger share: $603.1 million in economic output, about 6,500 jobs and $291.9 million in labor income. State tax and Baltimore admissions and amusement tax figures for the teams were redacted.

The Orioles and Camden Yards generated $253.7 million in economic activity, supported roughly 2,900 jobs and produced $126.5 million in labor income — a smaller footprint attributed in part to the club’s reduced attendance of about 793,200 fans during the earlier stages of the coronavirus pandemic.

Both reports relied on IMPLAN economic modeling software to estimate direct spending, including ticket sales, concessions, game-day employment and stadium operations, as well as indirect and induced spending tied to vendors, contractors and nearby businesses.

Baltimore benefits, but does Maryland?

Tom Rhoads, a professor in Towson University’s Department of Economics who specializes in sports business, said that although the Orioles and Ravens clearly boost spending around their stadiums, most of that activity comes from Maryland residents shifting their dollars within the state rather than generating new economic growth.

“When you’re talking about statewide impact, most of the fans going to Orioles or Ravens games already live in Maryland,” Rhoads said. “The money they’re spending isn’t new to the state — it’s just being spent in Baltimore instead of somewhere else.”

Rhoads said research consistently shows that stadium-related economic gains are concentrated in the blocks and neighborhoods around the facilities. Those local boosts — to bars, restaurants, hotels and vendors — might not translate into broad gains for Maryland taxpayers.

“It’s really hard to justify using state dollars to fund stadiums if you’re just shifting money around,” he said.

Mark Conrad, director of the sports business concentration at Fordham University’s Gabelli School of Business, said public subsidies can deliver wider benefits when paired with broader community development, such as new housing or commercial growth around the venues. But he noted that many sports economists remain skeptical that such investments regularly produce returns that justify their public cost.

“On the dollars and cents figures noted, it would seem that the area does not get the economic benefits to justify the costs,” Conrad said. “However, if you consider issues like the potential losses of the teams to other markets and the reactions of fans to the losses without these benefits, it could make these investments a better political bet.

“Still, sports franchises get more subsidies than other businesses, and it raises legitimate questions of whether this is the right approach in cash-strapped cities.”

Community benefits

Since opening in the 1990s, Oriole Park at Camden Yards and M&T Bank Stadium have anchored Baltimore’s sports and entertainment district, drawing hundreds of thousands of visitors each year and supporting downtown hotels, restaurants, retail and parking operations. The MSA-funded studies reiterated the stadiums’ importance to the area’s tourism and hospitality sectors, particularly as both industries continue recovering from the pandemic.

The reports also highlighted the teams’ community contributions. The Orioles’ outreach in 2021 included youth baseball and softball programs, hospital donations and volunteer work through the “Orange and Black Gives Back” initiative, as well as a vaccination campaign and the “Birdland Community Heroes” program.

The Ravens Foundation supported education, housing, hunger relief and athletics through grants, mentoring programs and volunteer efforts. Last year, the foundation gave $20 million to College Track, a national college-completion program that supports students from underserved communities aiming to become the first in their families to earn bachelor’s degrees. The Stephen and Renee Bisciotti Foundation and the Ravens will contribute $10 million, and the M&T Charitable Foundation will match it, helping College Track establish a Baltimore center to guide city school students from high school through college and into their early careers.

Construction of the North Plaza at M&T Bank Stadium and part of the improvement projects. (Lloyd Fox/Staff)

What’s next?

Maryland is preparing for major reinvestments in both venues. The state has authorized up to $1.2 billion — $600 million each — in borrowing authority for upgrades at Camden Yards and M&T Bank Stadium as part of long-term lease agreements designed to keep both franchises in Baltimore.

Rhoads said such investments inevitably raise questions about cost, value and the non-monetary benefits of keeping beloved teams in place.

“There is a public good element — that sense of civic pride in your team,” he said. “But the question is, how much is that really worth? Is it worth $1.2 billion?”

Have a news tip? Contact Todd Karpovich at tkarpovich@baltsun.com or on X at @ToddKarpovich.

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