Falling Rental Car Revenues Hit Sports Facility Deals

With tourism in a slump, the cities that host Major League Baseball’s “Cactus League” spring training teams are dealing with a continuing downturn in revenue as play begins in March. The revenue drop is not caused by attendance drop-offs, but by falling income from a 3.25 percent rental car fee that supports debt on Cactus League stadiums, according to The Bond Buyer.

Financial pressure is growing in the area of sports and tourism tax revenue, as Arizona is hoping to get an $84 million deal to keep the Chicago Cubs spring training facility in Mesa, Ariz.

Two public agencies, the Arizona Sports and Tourism Authority and the Maricopa County Stadium District, issue bonds for the league’s stadiums, with some help from cities in the Phoenix area. Two Major League Baseball teams also play their spring training games in Tucson.

Julie Schweigert, director of the stadium district, said auto rental revenue is down sharply from last year, primarily due to drops in business and convention travel.

Comment On This Story

Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Why Do We Visit Capitol Hill?

Members of the American Car Rental Association met with U.S. senators, representatives, and their aides last week. Here’s why bringing the message to this forum matters.

The Customer Isn’t Always Right

Not caving to a customer with a blatant agenda may have consequences, especially for a small rental company that relies on stellar Yelp ratings to advertise. But business integrity must prevail.

The Truth Behind Compact Van Depreciation

Why are large van values holding up better than their compact counterparts, and will it last?

Job Finder: Access Top Talent. Fill Key Positions.