Professional sports franchises create an advantage for the area where they reside. However, it is unfair for taxpayers to fund the lion’s share of new stadium construction while also enabling owners to reap a significant share of the stadium’s post-construction revenue.
“You would think that three decades’ worth of evidence would put an end to giving taxpayer money to wealthy sports owners. Unfortunately, you would be wrong,” wrote Dan Moore in The Atlantic in 2024.
- Buffalo Bills ($850 million): Public funding for a $1.4 billion stadium.
- Tennessee Titans ($500 million): Public contribution for a $2 billion stadium.
- Baltimore’s Camden Yards (baseball) & M&T Bank Stadium (football): $1.2 billion for renovations.
Potential long-term economic benefits primarily justify the use of public funding to construct professional sports venues–including, but not limited to, jobs created by the venue, increased tourist traffic, and overall stimulation of the local economy. However, studies have consistently demonstrated that while a venue may bring additional revenue into a community, it is unlikely to generate sufficient new revenue to justify the cost.
Proponents of using public financing for professional sports venues argue that the excitement and sense of identity and pride a successful professional sports franchise brings justifies the allocation of millions of dollars in public financing.
The counterargument is that “pride” in one’s team should never be considered sufficient justification for utilizing public monies in the tens or hundreds of millions of dollars. The reason is clear: there are other higher-priority uses for public monies, such as education, infrastructure, affordable housing, and public safety.
Owners and leagues have historically benefited most financially from stadium construction. They benefit directly from ticket sales, luxury suite sales, corporate sponsorship agreements with naming rights, parking fees, concession sales, and increases in franchise value. If constructing a stadium were a viable business opportunity, then owners and leagues would likely cover most, if not all, of the construction costs.
One option is to limit the amount of taxpayer money used. Cities, counties, and states can provide some level of support. Taxpayers should not shoulder a lion’s share of construction costs.
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