| Abstract: |
Prior to 2005, New Orleans had struggled to retain its NFL franchise. The
Saints remained in the city, despite an outdated stadium and small media
market, only through generous direct public subsidies to the team.
Paradoxically, the devastation wrought by Hurricane Katrina in September 2005
actually improved the short-term viability of the franchise by spurring an
outpouring of local support for the team and by making relocation of the
Saints politically untenable for the league. The long-term outlook for the
team, however, appears grim. Already a small market, New Orleans’ population
and business community has declined considerably due to Katrina. The NFL’s G-3
loan program for stadium construction is tapped out. Finally, the financial
success of other NFL franchises has both raised the cost of fielding a
competitive team and increased the value of the Saints as a target of
relocation. |