The world of professional sports is flush with cash, thanks to multibillion-dollar TV deals, sponsorships and ticket sales. Yet some of the biggest investments in major franchises come from taxpayers. Between 1970 and 2020, state and local governments spent US$33 billion in public funds on sports arenas, including nearly $20 billion since 2000 at an average cost of $330 million per project.
Lawmakers often justify those subsidies by saying they’ll create jobs, boost local businesses and attract tourists. But economists are skeptical. A 2017 survey found that 80% of economists think the costs of stadium subsidies outweigh their benefits. One analysis even compared the local economic impact of a sports franchise with that of a midsize department store.
