Taxpayers shoulder a heavy burden for sports stadium subsidies, the Tax Foundation said this week.
Reams of research shows that using bonds to finance sports stadiums and arenas do not generate enough revenue to justify the costs, the foundation said
“According to the academic research, the tangible economic benefits job growth, income levels, and sustained increase in sales or property tax revenues from stadium construction are non-existent,” said Joseph Johns, a state tax policy analyst for the Tax Foundation and one of three co-authors of the piece.
The Tax Foundation cites an academic
The increasingly nomadic nature of professional sport teams and the long maturity of bond financing makes the math challenging.
“The immediate beneficiaries of the bonds, the sport teams or franchises, are not held liable for relocating or requesting an even newer stadium prior to the maturity date of the initial bonds,” said Johns.
The NFL’s Raiders, Chargers, and Rams have all changed cities since 2016. Major League’s Baseball’s Athletics played their last game in Oakland Sept. 26, as owner John Fisher chases
Replacing a venue in the same city or renovating one also comes with financial risk.
“Residents were still liable for over $100 million in bonds when the New York Giants decided to demolish the former Giants Stadium and construct their current MetLife Stadium in 2010,” said Johns.
The cultural benefits of hosting major league franchises are often cited as motivating factors for the cash outlays.
Per the survey, “Even with added non-pecuniary social benefits from quality-of-life externalities and civic pride, welfare improvements from hosting teams tend to fall well short of covering public outlays.”
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Despite the discrepancy between the economic promise and the documented costs, counties and cities continue to issue new debt tied to stadiums and arenas.
Data from the Tax Foundation charts out $13 billion in proposals for public subsidies devoted to building or improving professional sports facilities are currently on the books.
Illinois and Florida lead the pack, with the NFL Chicago Bears and MLB Tampa Bay Rays each chasing $2.4 billion for new playgrounds.
An $850 million subsidy package in New York
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