Youth sports has grown into a multi-billion-dollar industry nationwide, but several Nebraska sports leaders say the state lacks enough modern facilities to keep pace — limiting opportunities for athletes and reducing potential tourism and economic impact.
Developers and consultants point to stalled projects tied to Nebraska’s Sports Arena Facility Financing Assistance Act — often called the turnback tax — as a major factor slowing new facility construction.
Jeff Weak, a sports facility consultant and executive director of the Wolfpack Sports Foundation, said the youth sports sector is growing rapidly and widely viewed as difficult to size precisely.
“It’s the Wild, Wild West out there,” Weak said. “We’re watching states around us build, and we’re watching our kids locally need places to practice and at least learn. We need facilities in order to support local kids first.”
Weak said youth sports nationally is estimated to generate tens of billions of dollars annually, though published totals vary widely. He said tournament travel alone creates significant economic activity through hotel stays, restaurants and retail spending.
As an example, Weak said weekend tournaments often require multiple nights of hotel stays per family, along with food and fuel purchases. Using an economic impact model he developed based on lodging, restaurant and retail spending categories, Weak estimates that when they stay in a hotel room, they could potentially generate in excess of $112 per person, per unique event visit.
Nebraska’s turnback financing law allows qualifying sports facility projects to capture a portion of new state sales tax generated within a defined radius after a project is announced. That future tax revenue can be used to help repay construction bonds. The act typically allows for up to 70 percent of state sales tax revenue generated by the facility to be used to pay off bonds for construction. Only new business activity qualifies.
“You collect only the new state sales tax generated within that district,” Weak said. “If the business is not new, you can’t claim it.”
Craig Wolf, co-owner of Cheer Athletics Omaha and AEF Basketball Academy, is working to develop a Gretna youth sports complex that would use the turnback financing tool. His organizations currently serve about 750 athletes each week, he said.
“What is quite apparent is how Nebraska is short on sports facilities,” Wolf said. “We don’t have what other states do. There has not been an investment made in youth sports facilities.”
Wolf said the turnback financing legislation passed the Nebraska Legislature with broad support and was designed to support youth participation while encouraging economic development. His proposed project includes large indoor court facilities and surrounding hotel, retail and restaurant development. He said multiple businesses have expressed interest in locating near the complex if it moves forward.
“If you’re a business, you want to be where people are,” Wolf said. “Businesses have told us that if you’re not coming, we probably won’t be coming either.”
Wolf also connected access to sports facilities with youth mental health and social connection. He said children’s mental health advocates he has spoken with emphasize that structured activities and in-person engagement help counter isolation among young people.
“This is about developing kids and having a community we can develop kids through the sport they love,” Wolf said. He added that limited facility space can result in athletes being cut from programs and spending more time inactive at home.
Both Wolf and Weak said Nebraska is losing tournaments and traveling teams to other states with larger and newer venues. Weak said volleyball is an area with significant facility shortages. Wolf said some out-of-state club operators have told him they avoid Omaha because of limited venue options.
Supporters of the financing program say most projects still require significant private or local funding beyond the tax mechanism and describe the model as performance-based because it depends on new economic activity.
These projects must receive approval from the governor. “As it currently stands, his vote is the only one that matters,” Weak said. “If he doesn’t show up, there’s no reason for a vote.”
Several proposed projects have not advanced through the approval process. Wolf said if the governor would simply approve a project, then it would move forward with a vote of the people.
“If we don’t move forward,” Weak said, “we’re ripe for private equity.”
The governor’s office was contacted for comment. A communications representative said she would follow up but had not provided a response as of publication time.
