Sample Article Review Paper on Article Critique

In their article, Maxcy and Larson (2015) have endeavored to examine the belated move by American universities to construct new stadia, as they seek to follow the trend set by their professional sports counterparts. While such a move is bound to result in an increased flow of revenue for the universities, the ensuing indirect benefits from such projects have been cited by the authors as having influenced the current demand for new college stadia. They include among others, increased student application, improved retention rates, higher university ranking, increased prestige, and improved campus community. In terms of return on investment, Maxcy and Larson (2015) opine that in order for such a project to be considered worthwhile, the net value of the resulting spillover benefits ought to be more than the financial loss.

The authors have done well to provide a detailed evaluation of examples of proposals by American universities that are in the process of constructing a new stadium (for example, Colorado State University). In this case, Maxcy and Larson (2015) have used statistics to demonstrate the expected net gain and growth rate per annum should such a project be implemented. The authors have also utilized projected cash flows (of up to 30 years) to determine if investment in the construction of a new stadium ought to be accepted or rejected.

However, the authors seem to dwell more on the economic benefits (or demerits) of constructing a new stadium, at the expense of other negative consequences of a university stadium. These include increased noise and its effect on student’s level of concentration during study time. Additionally, there are other non-monetary benefits to be had in constructing a new stadium, such as increased student enrolment, especially those who do well in sports. Increased enrolment of such students would lead to increased prestige and recognition of the university, and yet the authors have not focused on this issue in-depth. Overall, Maxcy and Larson have demonstrated that some of the subsidies extended towards the construction of new stadia could affect the overall financial health of the university as financial resources meant for important educational projects are directed towards the construction of a new stadium. This could have far-reaching economic and social implications for the university, and yet the article has not discussed this issue.

References

Maxcy, J. G., & Larson, D.J. (2015). Reversal of fortune or glaring misallocation: Is a new

football stadium worth the cost to a university? International Journal of Sport

Finance, 10(1), 62-86.