Cities keep shelling out taxpayer money for sports stadiums, yet the economics almost never makes sense

Economists writing on public stadium financing note that leagues bring in tens of billions annually, yet taxpayers covered roughly 73% of the $33 billion spent building U.S. and Canadian sports arenas between 1970 and 2020. Franchises typically pitch these deals with promises of jobs, tax revenue, and property value gains, often paired with threats to relocate if public money isn't offered.

Research reviewed in the piece found little to no benefit to per capita income or job growth from these subsidies, and a study of Atlanta's Truist Park found the county actually lost about $15 million a year once debt service and expenses were counted against the modest tax bump. Property value effects were mixed at best, with some studies finding gains only after a team left town.

The authors attribute the gap to simple substitution: stadium spending mostly reshuffles local residents' existing leisure budgets rather than importing new money, and public dollars spent on stadiums are dollars not spent on roads, schools, or other services.

The full dispatch is available from the source below.