This primer will help public servants understand the international history of public financing for stadium construction and empower them to use academic research to interrogate claims that these projects mean big bucks for communities.
The research also finds:
- Journalists often report figures from press releases and economic impact statements without questioning the assumptions of those analyses.
- Of the dozens of stadiums built in the past two decades for the four largest American sports leagues, about 4 in 10 were financed at least in part with municipal bonds exempt from federal taxes — which places part of the financial burden of stadium financing on residents nationwide.
- Football and baseball stadiums may increase foot traffic to nearby businesses, but basketball and hockey arenas do not.
- Overall, stadiums tend to shift economic activity, not create new spending.
- Expansion teams are likely to favour markets that already have strong employment and business growth.