Stadiuming, or the demagoguery of the decade

Stadiuming, or the demagoguery of the decade

Writing by GEDEON ANDRÁS JÁNOSSY

Through the eyes of an economist, we recalculated the expenses spent on stadiums.

“One of the strongest anti-government arguments of the last ten years is clearly‘ stadium ’. It can be added to almost any topic that “the government is spending endless money on bezzeg stadiums!” a renovated sports facility was modernized or built in Hungary. The new national Puskás Arena has been completed, all leading teams except the Honvéd have been completed, and several second-class teams have been given new stadiums.

In ten years, a total of HUF 330 billion went to stadiums, of which HUF 190 billion was taken by the 67,000 new national stadium, the Puskás Arena.

Let's take a brief look at the Index.hu article from the comments received on Facebook:

«Even reading is awful!« »It is outrageous that a lot of money was spent on this!« »The country was robbed!« »Wasting so much money on this childish ball?« »Mentally ill Orbán« »Amazing!«

Let's look at the numbers instead of emotions

In politics, we can see that the issue of stadium construction is a highly effective mood-generating and voting topic. It’s simpler, and most importantly, more appropriate to influence readers ’emotions than to look behind the numbers. Yet now, primarily through the eyes of an economist, we have recalculated the spending on stadiums.

It spent HUF 330 billion on the construction and development of stadiums in 10 years.

Of this amount, HUF 190 billion was the national Puskás Arena, which is important and necessary, even according to opposition politicians. It is worth noting here that a national stadium is built every 50 years, with a good chance no one will build a new one in the coming decades. There was tremendous interest in the opening of the stadium in November, but only 67,000 were able to buy tickets. The new Puskás will also host three matches of next year’s European Football Championship and the 2022 Europa League Final.

Thus, countless small and large stadiums were built all over the country for 140 billion forints. That seems like a lot of money, but it’s actually an extremely negligible amount at the state level. It is worth knowing that Hungary's annual budget is 21 thousand billion forints, but the stadiums have been built continuously for ten years.

Quantitatively, the country's budget has totaled HUF 180 billion, ie one hundred and eighty thousand billion forints, over the past ten years. Of this amount, HUF 140 billion, or one hundred and forty billion forints, has been allocated to stadiums for sports associations since 2010.

With a simple mathematical operation, we can find out how much of the budget was affected by stadium construction. If anyone distributes the numbers, they get a result that is noticeably inconsistent with the degree of stadium they hear from the media. The result is 0.00078. So 0.00078th of the expenditure went to club stadiums, which is 0.078 (!) Percent of the budget. Together with the Puskás Arena, the same figure is 0.00183th of the state's expenditures. It can also be said that 0.18 per cent of the total state expenditure went to all the stadiums built and 99.82 per cent to everything else.

Through an ordinary example, it is as if someone spends exactly 549 forints of their net salary of HUF 300,000 on stadium construction, sports development, communities, settlement development, and the creation of thousands of jobs.

Without the Puskás Arena, the amount would not reach the price of a single beer: compared to HUF 300,000, all the built club stadiums would cost HUF 234. ”

Source:https://mandiner.hu/cikk/20200430_a_stadionozas_avagy_az_evtized_demagogiaja

Tags: Development  Media 

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