Publicly-Funded Stadiums Bad Deal for Cities

Sports teams often coerce cities into contributing public funds toward the building of new stadiums. Numerous reports indicate that it's a bad deal for cities with little to no positive economic impact, writes Neal DeMause.

1 minute read

August 21, 2011, 7:00 AM PDT

By Tim Halbur


Cities have been contributing public funds to sports stadiums with promises that the stadiums will revitalize areas and be an economic boon, but the data doesn't back up those claims.

"Studies demonstrating pro sports stadiums' slight economic impact go back to 1984, the year Lake Forest College economist Robert Baade examined thirty cities that had recently constructed new facilities. His finding: in twenty-seven of them, there had been no measurable economic impact; in the other three, economic activity appeared to have decreased."

It seems that fear of losing sports teams will drive most cities to do just about anything to keep a team. In addition to funding a stadium, the perks for teams include subsidies, tax breaks, and loans: "they added an average of 40 percent to sports facilities' public sticker price."

In addition to all the obvious deals, cities are often out-maneuvered by team lawyers that sweeten the deal with outrageous perks that are to the detriment of the city including clauses that require a stadium to remain "state-of-the-art" or else a team could break its lease.

Until cities decide to work together and not compete for teams, the stadium blitzes will likely continue, says DeMause.

Thanks to Cathie Pagano

Monday, August 15, 2011 in The Nation

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Bird's eye view of manufactured home park.

Manufactured Crisis: Losing the Nation’s Largest Source of Unsubsidized Affordable Housing

Manufactured housing communities have long been an affordable housing option for millions of people living in the U.S., but that affordability is disappearing rapidly. How did we get here?

March 25, 2025 - Shelterforce

U-Haul truck on road with blurred grassy roadside in background.

Americans May Be Stuck — But Why?

Americans are moving a lot less than they once did, and that is a problem. While Yoni Applebaum, in his highly-publicized article Stuck, gets the reasons badly wrong, it's still important to ask: why are we moving so much less than before?

March 27, 2025 - Alan Mallach

Rusty abandoned oil well and equipment with prickly pear cactus next to it in West Texas.

Using Old Oil and Gas Wells for Green Energy Storage

Penn State researchers have found that repurposing abandoned oil and gas wells for geothermal-assisted compressed-air energy storage can boost efficiency, reduce environmental risks, and support clean energy and job transitions.

March 31, 2025 - Pennsylvania State University

Colorful blocky apartment building facade.

Minneapolis Bans Rent-Setting Software

Four cities have enacted restrictions on algorithmic software that can inflate rent costs.

April 1 - Stateline

Silver electric BMW car parked in driveway of home in Oakland, California.

Oakland to Add 244 New EV Chargers

Oakland plans to launch its new charging network at eight locations by the end of 2025.

April 1 - City of Oakland

Sculpture of seated Jane Goodall holding hands with chimp on green lawn.

Jane Goodall Inspires with Message of Hope, Resilience, and Environmental Action

Speaking in Pasadena, Jane Goodall offered a hopeful and inspirational message, urging global compassion, environmental responsibility, and the power of individual action to shape a better future.

April 1 - Pasadena Star-News