In a move aimed at creating successful stadium and arena projects, the Japan Sports Agency has carried out research into fundraising methods and private finance initiatives.
From February to March this year, the JSA conducted the research which is aimed at introducing private funds into the development and operation of sports facilities that have previously relied on public funds.
One possibility raised in the group meetings was to build and operate facilities based on a combination of public and private funds; infrastructure development projects using public-private partnerships (PPP) and private finance initiatives (PFI) methods were cited as examples.
For new projects with challenging financial feasibility forecasts, and given the scarcity of prior examples in Japan, a proposal was made to distribute risk by combining multiple fund sources such as public budgets, public investment and loans, and sponsorship from private businesses.
Going forward, the JSA will share various findings, including the content of the group report, with stakeholders and endeavour to produce best practices by encouraging discussion among local stakeholders within a stadium and arena promotion council held for each project.
Credit: Japan Society of Sports Industry