Root, Root, Pay for the Home Team? Taxpayers Funding Professional Sports Stadiums

4340 Words Feb 9th, 2014 18 Pages
Root, Root, Pay for the Home Team?
Taxpayers Funding Professional Sports Stadiums

Kayla Thompson
MBA 578 SB FT
Managerial Economics
April 13, 2013

ABSTRACT
The purpose of this paper is to address the issue of the public (taxpayers) funding the construction and/or renovation of privately owned sports stadiums. The use of public funds has skyrocketed since the early 1980s. Why has there been an increase in the trend and what is really going on behind the scenes? Through my research, I have found six articles that deal with many questions surrounding this hot topic issue. First, I will examine how the sports teams and the local governments deal with the public when proposing the funding of the sports teams’ stadiums. After the
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What sports fan doesn’t like the idea of being able to help pay for his or her favorite team’s stadium? One might say that fans spend a lot of time and money there, so they would like the stadium to be nice and new. It is quite possible that a new stadium could help the team’s performance, or help with the chance to hold a major event, such as the Super Bowl (at least these are perceived notions among many sports fans.) The incentive to win or attend the Super Bowl seems pretty enticing to a fan. Plus, without a new stadium, many owners threaten to leave town if they are denied help from taxpayers. Can you imagine not having your favorite team in town anymore? The pride in having a hometown team is not something to take lightly. The owners and the local government work together to convince the residents of the city and local businesses that it’ll all be worth it in the long run thanks in part to the jobs and revenue being put into the city. Surely fans don’t mind giving a little bit of extra money out of their taxes if it means keeping their favorite team around for many years to come while supplying jobs and extra revenue into local businesses.
But, the answer to the main question is not as simple as it may seem, especially to the uninformed sports fan. Take a look at this topic from an economic point of view. Is there an actual economic gain from having a new sports stadium? Professional sports teams are multimillion dollar organizations themselves. Why