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Hard Profitability

Build, Baby, Build!

#Sports #Government
ProHub Comment

This case tests the candidate's ability to balance quantitative financial analysis with qualitative economic considerations. The key challenge is recognizing that despite negative NPV across all locations, the primary objective is economic stimulus, requiring candidates to debate intangible benefits alongside the financials and identify revenue and cost risks.

Estimated Time 15 minutes
Difficulty Hard
Source Wharton
50 / 100
Philadelphia is among the host cities for the FIFA World Cup 2026 to be held in the US. Currently, the MLS team Philadelphia Union plays at the Subaru Park in Chester, PA, and your client, the city council, has turned to you, debating whether to build a new stadium within the city limits in time for the World Cup and whether such a move would help boost a stagnating Philadelphia economy.

Clarifying Information

  1. Primary goal of the Philadelphia city council is to help boost the economy
  2. The city council will proceed with the stadium build if it pays for itself within a 10-year period
  3. The council currently has three sites in mind – Center City (urban, commercial locality), Chinatown (urban, less commercial), and the Philadelphia Sports Complex (city outskirts)
  4. If a suitable site is approved, rezoning is not considered a challenge
  5. Ticket proceeds will not go to the city council, but they will receive a stadium rental fee
  6. Subaru Park was built 20 years ago, with no further information on stadium life available