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College of the Holy Cross

Subsidies

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Full-Text Articles in Urban Studies

Point/Counterpoint: Is There A Case For Subsidizing Sports Stadiums?, Victor Matheson Dec 2018

Point/Counterpoint: Is There A Case For Subsidizing Sports Stadiums?, Victor Matheson

Economics Department Working Papers

In recent decades, governments have committed enormous public resources to subsidize construction of new stadiums, and the dollar value of taxpayer contributions for these subsidies continues to climb. Spending of taxpayer dollars includes both direct subsidies from state and local governments, as well as indirect subsidies from the use of tax-exempt bonds to finance construction. In granting stadium subsidies, governments claim that the stadiums are a public good that attracts tourists and businesses, thereby generating increased spending and job creation—benefits that flow to the community rather than to team owners. But do such benefits exist, and are they large ...