Cities should not pay for new stadiums
sites.lsa.umich.edu
sites.lsa.umich.edu
Further, spaces like the Kennedy center (or amphitheaters) play a revolving set of shows which makes it difficult for any private entity to have enough skin in the game to fund it. If the stadium was owned by the city and rented to whichever group wanted it, that would be more analogous. But right now it's the X stadium, the sports team sells the naming rights, gets the revenue from other uses, etc. Instead, put them in a position where they can be outbid for the use during a home game and I might start agreeing.
It's really difficult to fund it when you have government backed competition which doesn't answer to the market.
I'm not sure if this applies to the Kennedy Center, but it certainly applies to the mega stadiums which double as concert venues that seem to be popping up around here. It would be impossible to compete against a government owned venue which will certainly have at least a conflict of interest in the development of supporting infrastructure and other legislation.
I know which of those two provides more value to society, and I think it's a fucking joke how art & music are not seen as things humans do like birds making a nest, but as something to commodify and court private investment with. We completely cut art and music from most curriculums in K-12 to afford budget cuts and what did we get out of them? Did you notice the extra fraction of a fraction of a penny this year on your return?
The reason private entities don't fund art is the same reason they don't fund public transit or worker pensions or guaranteed pay sick leave or... it's not profitable. I yearn for the day Americans are willing to support something regardless of how much money it makes them. Especially for a country that waxes so much poetic about its "moral majority".
HN sneers about "voting against their own interest" when they do that.
This is unlike "musicals", which are protected by copyright, and are thus only run by the musical's rights-holder's licensed troupe(s), in a particular place (usually Broadway), with a particular interpretation of the material (the rights-holder's); where the revenues are due to high ticket prices that can be charged often only due to the artificially-created scarcity of performances of said musical due to IP law. (I.e. for many musical, nobody is going because they're fans of the particular actors/director/etc; they just wanted to see a performance of musical X, akin to what you'd get from seeing opera X. But there's only one available performance of a given musical X. Musical producers have a monopoly on performances of their musical.)
Musicals make money, by design. Opera does not make money, by design. Instead, opera houses take donations, in much the same way that you might imagine a "local open-source software development collective" might take donations.
When the people of a municipality get together and decide that they consider their local opera house a "local cultural institution" worth supporting with their tax money (usually only to prop it up in bad donation years), this does certainly make the opera house into a "government-backed" project. But in this case, the "government" here is just the mob-action of the people of the city. It's the atheist version of a church congregation agreeing that their tithes should be partly directed to some local needy cause.
This is exactly what capital markets are for and some capable and incentivized entrepreneur would acquire/develop such a venue and charge rental rates as applicable.
Unless I’m misunderstanding your point, you’re sort of indirectly advocating against grants for the arts. Is that accurate?
It's hard to get a large amphitheater going without government support. While I'm sure there are examples, but none spring to mind either currently or throughout history. But subsidizing live events of a revolving nature is different from subsidizing a billionaires sports team.
Giving money to football teams is not much of a step removed from putting it directly in the pockets of the already rich owners of the teams.
But this idea that opera is stuffy high culture is the same mistake people make with Shakespeare--it's pop culture, just removed from its context. Imagine upper-class twits a century from now screening an Adam Sandler movie.
I could be wrong obviously, but I would be extremely surprised if Adam Sandler movies have centuries of longevity to them; I think even people who like his movies will acknowledge that they're not spectacular films.
Of course the "test of time" test isn't always an indicator of quality. There are plenty of old books that I had to read that I thought were terrible, and moreover there are plenty of modern music that I think is fantastic that no one else will really care about.
I like tennis but I would not force you to subsidize its existence.
But this is less true when the stadium is built and then surrounded with parking lots that you have to drive to to go park your car. It's more true when the stadium is built in a neighborhood or at least a walkable area.
Recently Columbus was going to lose the much beloved Columbus Crew soccer team. We had a stadium off of I-71 that was, you guessed it, surrounded by parking lots and not much else. You couldn't grab a beer before or after the game. People couldn't go camp out at a nearby bar and while you're not in the stadium you're close by and part of the atmosphere. Fortunately the state and local business leaders rallied together to #SavetheCrew and we were able to keep the team and we're building a new stadium next to Nationwide Arena in downtown Columbus where you can walk to the stadium. Hell, you can actually bike there from the suburbs using an existing bike trail and check-in your bike. Similarly, Ohio Stadium on the campus of Ohio State University is very walkable. People go and grab brunch before the noon game, they buy apparel, etc.
So I think that yea, a football team is likely to make money for the team owner and cities and governments should be weary of this. And I also haven't read the article so maybe the benefits I mentioned are washed away somehow, but I can't imagine Columbus without Ohio State football, Bluejackets hockey, or Crew soccer. I think it makes the city a better place, even if the owner (of the latter two) makes money.
And you can watch Music Hall for $50 or Operas/Ballets for $100. This are not crazy prices compared to a normal concert/stadium seat.
...Low blow man, low blow. Cats (the musical) is a lot of fun, and has some fantastic musical pieces.
A: T.S. Elephant.
Wages for everyone involved are low, everyone in the industry is working side gigs, and without government help, the entire thing will collapse.
(I'm also unsure anyone actually enjoys Cats.)
There's a few profitable companies here and there, but they wouldn't exist without a large feeder ecosystem.
Source: my spouse worked in theatre for a decade.
Profitable against variable costs, not fixed + variable costs. Those shows are still receiving a taxpayer subsidy and in the vast majority of cities, wouldn't be performed in nearly as nice a building without it.
https://www.kennedy-center.org/globalassets/news-room/annual...
It's a huge difference, not a minor one, and not one divided by class like you imply.
And I'd bet every penny I have that the average opera or theater attendee is significantly up the class scale from the average high school football game attendee.
I'm with you on "Cats" though.
The band, color guard, freshmen, and JV teams generally use that field as well. Many students attend games. Not to mention the fact that in many schools graduation happens on the football field.
[1] https://www.houstonchronicle.com/sports/highschool/article/T...
> Not to mention the fact that in many schools graduation happens on the football field.
Maybe it's because I live where I live, but no high schools around me do this any more; it's all at local amphitheaters and the like.
And in my experience, when the teams are not using the field, the public can use it (either it's open for e.g. walking/jogging, or it can be reserved for a group event or youth football, soccer, or other community events).
"Actually, a fairly large percentage of people use it."
"Those people don't count because they've been conditioned to use it."
>it's there already
Doesn't change the fact that you'd need to pay for some alternative venue if it wasn't there.
Curious where you go this idea. I don't have any evidence to back up my suspicion that this might not be correct, but wondering what yours is, too.
Also the only way to stop these gifts to private companies is likely with a new federal law banning them. It is simple game theory. These businesses will go where the profit is. Any city or state that refuses to pay will lose out until every city or state refuses to pay. The best way to force that is with a federal ban.
> Also the only way to stop these gifts to private companies is likely with a new federal law banning them. It is simple game theory. These businesses will go where the profit is. Any city or state that refuses pay will lose out until every city or state refuses to pay. The best way to force that is with a federal ban.
No. You can just...refuse to subsidize them. Seems to be working fine for Seattle, where IIRC the renovated stadium for their new NHL team was privately funded.
And if they do go somewhere else, what's the downside? Seattle lost its NBA team a while back, which was a bummer for basketball fans, obviously, but otherwise what was the harm to the city or region?
Plenty of high prestige world cities like Tokyo or London or Paris aren't known for their pro sports teams. They seem to suffer little for it.
For a while, the Olympics were able to basically threaten their way into huge subsidies from even developed countries, but this seems to have mostly gone away now, as everyone collectively woke up from the delusion that the Olympics were a major economic boon worth investing in. Sports team stadiums could easily go the same way.
edit:
Okay, obviously I should've picked different world cities as examples, but even taking those: Tokyo's pro sports teams don't have anywhere close to the foreign popularity that London's EPL teams do. Does that seem to hurt it?
Local governments do subsidize movie production with all sorts of funding and grants. In addition to the local population, many people travel to cities where sports matches, concerts, and other events (e.g., conventions, auto shows, etc.) are held in the stadiums. This also affects other businesses in the city that benefit from the spending done by those that travel into the cities.
>Plenty of high prestige world cities like Tokyo or London or Paris aren't known for their pro sports teams. They seem to suffer little for it.
Ever heard of... - London: Arsenal, Chelsea, or Tottenham (Soccer), Wimbledon Championships (Tennis) - Paris: PSG (Soccer), French Open (Tennis)
Every major "high prestige world city" as you describe is a hub for multiple sports and various tournaments that invites both local and international crowds.
Sure, but when slg says the financials are settled, presumably they mean stadiums are a bad investment even when all such tangible benefits are taken into account.
The question is whether there are other intangible benefits - maybe a city with a sports team is happier; or has lower obesity; or an improved cultural life reduces brain drain; or the city can afford a mass transit system and needs one, but bundling it with a stadium breaks through some political deadlock; or it's just plain that voters support the stadium.
A theory of intangible benefits would also be helpful in explaining why cities keep on bidding for the olympics, which is otherwise hard to rationalise.
Big cities tend to attract big sports, can't deny that, I just don't think the causation really works the other way, at least not strongly. How much would London or Paris suffer if they lost their big sports teams and events?
The article directly addressed this point by saying:
While counter-intuitive, tourism does not see an increase as the result of a sporting event, as often a similar amount would be spent by that city’s residents in a different city, thus creating no real net gain.
Now this may not be true for concerts or other events held in the stadium, but in general I think the idea is that the study indicates sports events don't generate significant tourism, instead drawing a primarily local crowd.
I would also argue that most people would have no issue(or minor issues) with local governments subsidizing _Some_ of the cost of a new stadium and other forms of entertainment. I think the issue comes in when the financial cost is extraordinary (> 1 billion USD).
This has been dis proven TONS of time,including in the parent link. Funding of sports stadiums DOES NOT increase economic activity enough to cover the costs
My gut says you have the causal relationship here backwards. The lack of those teams wouldn't ding the city much, if at all.
The article refutes this point.
Which is dumb, though I don't think the stupidity quite reaches "city spends a billion dollars for one particular team" level.
> This also affects other businesses in the city that benefit from the spending done by those that travel into the cities.
Again, the research on this is quite clear: the economic benefits there are meager at best.
> Ever heard of... - London: Arsenal, Chelsea, or Tottenham (Soccer), Wimbledon Championships (Tennis) - Paris: PSG (Soccer), French Open (Tennis)
I've heard of most of those, I guess I've just never heard of my friends or family going to see them, even though many have visited those cities (and myself as well).
In yet another example of why government intervention in markets is mostly to make them worse: the politicians in charge can’t help but build and spend the citizens’ money on flashy vanity projects. Public expenses, private profits. They’ll talk it up like it’s some big “civic” investment in Prestige with all sorts of abstract benefits, rather than just being a handout to the rich — and if you challenge them, well, they will correctly tell you that everybody does it!!!
So what if City X gets some revenue from away-team fans when the City X Team has a home game? That only evens out with the revenue lost when the local fans go spend their money elsewhere on away games.
* American Football
* Basketball
* Baseball
* Ice Hockey
Of which Ice Hockey is the only one really played outside of America (and I believe even that's mostly Canada which is basically America)
And why not city would ever fund a private team's stadium (like PSD or Tottenham), they do sometimes fund national stadiums (like Wembley)
The US government actually does subsidize Marvel movies pretty heavily by giving them free/extremely cheap access to military equipment and personnel. Peace movements pretty heavily criticize these movies for this reason. See for example: https://www.cbr.com/captain-marvel-mcu-military-relationship...
Ehhhh... What?
I could follow your argument until this line but Paris and especially London are absolutely known for sport teams.
https://www.rnz.co.nz/news/sport/463098/chelsea-now-owned-by...
Not that I disagree with the general gist, I had to facepalm at that!
I think the general risk is that a rival politician will promise to bring back sports teams, with some dodgy financial setup that conceals the true cost, and the electorate will gobble it up
For example, it would be totally unacceptable to large parts of the country for Manchester United to go bankrupt and be sold off in parts as would happen in a normal business. I don't even really care and I think I'd find it outrageous too. The political sphere here is well aware of the value communities place on their FCs and protecting that system is commonly a part of political debate.
I feel like treating sports as a regular business is questionable. If we wouldn't allow a business to fail, it's not a real business, and looking at what literally just happened with Chelsea, it's clear we won't allow it to fail in the same way as a normal business.
You could say the same about monarchy, religion and, not long ago, smoking.
I couldn't care less about football. I doubt as many women care as men as well. "large parts of the country" can pay for their own shit.
Yes, the impact isn't zero, but I feel like the answer to the question of "How many people know about London" would change relatively little if you removed the pro sports teams.
But yeah I probably should've picked better examples. I think Tokyo works fine, Japan's pro baseball league doesn't have nearly the same global popularity as the EPL. Maybe Berlin? I lived in Munich and don't remember Berlin's football team, if they have one, really coming up much.
A city with a sports team benefits in numerous intangible ways. These teams serve as marketing for a city, both internationally and externally. It is a marker of quality for a city, a stamp of approval. They help contribute to a public identity of a city. There is value in having a communal identity. It unites people and helps them work together on more serious problems.
People also love following the local sports team. Yes, this is entertainment similar to other forms, but it can often be free. You don't need to buy tickets to a game to enjoy it. For example, every soldout NFL game is broadcast for free over-the-air in their local market. Marvel movies don't premier for free on the TV in my home.
It's amazing how twisted adult mindsets about sports are. Notice how not caring about watching pro sports teams is, in your mind, "not liking sports." As if the primary function of "sports" is to be watched, rather than, y'know, played.
> It is a marker of quality for a city, a stamp of approval.
I really don't think so. It's more likely that causation works the other way: cities that are successful tend to attract sports teams to take advantage of the local market.
Take Seattle: lost its NBA team, lost its NHL team until very recently. Was just found to be the most desirable city for new college grads anyway. Nobody's been thinking that Seattle sucks because they only had two of the four major US pro sports present in the region.
London has Chelsea, Arsenal, West Ham, Tottenham in the premier league. People come from all around to watch them play. I say this as someone who cares little about football.
On the other hand, I'm pretty sure German cities like Dortmund and Leverkusen are primarily known because of their soccer teams (at least among those who are into soccer, and that is a lot).
There are probably otherwise-sad US cities with decent pro sports teams that help bring name recognition...but does that actually translate into anything productive? The data on economic benefits seems to indicate the answer is 'no'.
Paris has Paris St Germain, who currently own two of the most recent top international players on the world stage.
Both cities also have lots of too-tier clubs from other sports, e.g. rugby.
These cities do have plenty of other attractions beside sports though to attract tourists and investment, so without these teams the cities would likely be fine.
As already the old Romans knew: panem et circenses is what you need to keep your population from uprising - aka, providing them with food and entertainment.
> You may as well argue that the government should be subsidizing new Marvel movies, or Call of Duty, because those are popular forms of entertainment too.
Movies, including blockbusters such as the MCU, are already subsidized. As for games - the European Union subsidizes developers since 2014[1], Germany runs an additional program since 2019 [2].
> For a while, the Olympics were able to basically threaten their way into huge subsidies from even developed countries, but this seems to have mostly gone away now, as everyone collectively woke up from the delusion that the Olympics were a major economic boon worth investing in.
The subsidies for Olympic Games and FIFA World Cups were for a very long time mostly housing, public transport and the stadiums that were sustainably usable for many decades (just look at my home city of Munich if you want to see an example). Only after corruption took over decisionmaking and sponsors demanded special laws (e.g. in Brazil with beer [3]), liberal democracies decided to not participate in the racket, and so dictators bought their way in.
[1]: https://www.treffpunkteuropa.de/wie-die-eu-die-entwicklung-v...
[2]: https://www.bmvi.de/DE/Themen/Digitales/Computerspielefoerde...
[3]: https://www.t-online.de/sport/fussball/wm/id_53306408/fifa-v...
But you might not know that about the most popular pro sport in the world.
A sports team and a stadium have a very narrow appeal and is inaccessible to a large segment of the population either due to disinterest or lack of funds.
I get your gist here but I think it's pretty easy to make a distinction between these things. Even the most hardened Libertarian would agree that public spaces like parks are a net good.
Distracting and pacifying the populace with athletic spectacle is a trick governments have used for longer than history has existed. Major league sports are just the latest iteration in a long line of bread and circuses.
There are counter examples as well. The New York Yankees? The Dallas Cowboys? Toronto Maple Leafs? Take away the sports franchises from those cities and it would definitely be a huge economic and cultural hit to those cities.
But what I really want to know is who pays $200 for a sports ticket and $20 for a beer? There is money to be made hand over fist, but I just don’t understand why that is true at all. I’d rather not have these sports teams either if only for the traffic they generate on game days. But if you want to blame someone, blame the customers for this stuff, not the local government that is just giving them what they want.
Also, Tokyo is a really bad example of you are failing against prestige boondoggles. How many sky trees and Tokyo towers does the world really need?
Maybe the more apt example is Green Bay, a city that would otherwise be a total unknown. Mid-tier cities like Indianapolis as well. There's a number of other cities like Liverpool that are known for the Beatles and a sports team. For those cities, you can see why the mayor might think it's worthwhile to help out the local sports team. Nonetheless, it's still likely the case that it's really a waste of money.
Genuine question: isn't it absurdly rude to respond to something somebody said in this way?
1) There are no new facts likely to come out any time soon & the situation is unlikely to change.
2) This is a question of public spending.
3) Joining dots, someone is being taxed to fund other people literally just entertaining themselves.
Eg, say I don't like team sports and there are some homeless people living nearby. Why should I be paying taxes for an uneconomic football stadium? The people who use the stadium can pay for it. If they can't afford it, it shouldn't be built. There are real problems in the world that are more important than people distracting themselves.
And from that perspective, downright contempt for pro-public-spending-on-stadiums seems a plausible position.
Not disagreeing with your overall argument, but London is the home of several Premier League clubs, with Chelsea, Arsenal and Tottenham having global followings.
Paris has PSG, which is infamous for spending seemingly limitless money to bring in superstars like Messi, Neymar, Mbappe and others. Their ownership by a Qatari sovereign wealth fund is the subject of constant conversation among those who follow football.
Tokyo I will grant you. They have the baseball Tokyo Giants, but I don't think they are closely followed outside of Japan.
This also works for the Green Bay Packers (American Football). To raise money for an upgrade / expansion of their stadium, they just issued more ownership certificates, and the fans of the team bought them. GB has a unique ownership model compared to the rest of the NFL though.
The state of Rhode Island burned a huge amount of cash on by funding a loan for a video game company. That didn't pan out.
You are kidding yourself if London and Paris are not known for sports. Baseball is big in Tokyo. Have you been to State de France? You think Wembly stadium, Arsenal, Chelsea, and Tottenham aren’t a global brands and icons?
Tokyo - 2020 Olympics
London - 2012 Olympics
Paris - 2024 Olympics
What a beautiful way to shoot down your own post, well done.
Government subsidize movies and art for their cultural value.
can't believe what i'm reading. go read some cold war history, or even pre-WW2 history.
I can't on the top of my head show any figures, but a classmate of mine that lived in the suburb with a stadium, a place everyone considered "the ghetto" because of crime rate, said it wasn't as bad as people said it to be; with the notable exception, and he was very clear about this:
when there's a football match going on in the new stadium close by, every family in the vicinity knew not to let their kids out (or go out on the night) because the city got too unsafe to walk around because of supporters/drunk hooligans trashing places and being violent. (risk of getting robbed, raped, assaulted went notably up every time there was a match that stretched in to the night)
The stadium to the locals felt like a net-negative. Bars and night life owners where happy, but to ordinary citizen it meant more crime, trashed streets, vandalized walls/shops + the immeasurable effect of the stereotype that got attached ("high concentration of immigrants = high crime rate")
But I guess it's worth it when you factor in that without security, football fans might trash the place and mess other people up like you describe.
However, I understand that those sport events are like a safety valve on a pressure cooker. It lets those aggressive members of the community to vent so they don't realize how fucked they are in their daily lives. It something like a pacifier for those people. It is bread and circuses, and the bread is getting smaller and smaller.
That said, if the local government is spending money on (pretty much private) stadiums, then I would postulate that they have too much money and the taxes are too high.
american top level sports teams are part of a multi-multi-billion industry.
this isn't getting together to build a library, it's a direct transfer of tax money to private companies that can or should easily afford to pay for it themselves.
christ alive.
It's hard to overstate just how important big teams like say, Chelsea or Barca are for a huge chunk of not just the people who live in their home cities but also across the world. How do you quantify that in terms of cost? It will obviously never happen but let's say barca wanted to leave Barcelona, do you think the city shouldn't do anything about it because it helps billionaires?
Tons of Arts museums, especially those for contemporary/avant garde arts are usually displaying private collections and in practice only benefit a very small minority of usually rich people. Operas and orchestras too. Shouldnt we just stop funding those too then? Where do we draw the line?
Here "important to" is equivalent to "liked/entertained by", as a form of entertainment. The question here is what forms of entertainment should tax payers pay for and your comparison with art museums, operas and orchestras is apt.
> let's say barca wanted to leave Barcelona, do you think the city shouldn't do anything about it because it helps billionaires?
If barca were extorting the city of Barcelona by demanding they pay 10s or 100s of millions to upgrade Camp Nou, then the city should tell the team to go to hell. This exact scenario has played out in multiple cities in the US and with the IOC and city bids.
They may lose out on the chance to fork over millions (or billions) to a bunch of already crazily wealthy team owners, and maybe that means the stadium doesn't get built, or maybe it means that team leaves and market forces are such that if its a big enough city is makes economic sense for a new team to come in an build their own stadium (maybe not as glorious, but good enough to host games and sell tickets). Those millions (or billions) not gifted to the old team owner might be then spent on improving infrastructure or making better schools and parks and things that make a city nice to live making it even better off then before.
Remember when Amazon wanted all those perks from NYC to put offices there and then everyone was like 'no effing way' and so they backed down. Amazon still opened offices in NYC because it freakin' NYC. They never needed the incentives.
Wait, what? Are you sure? I don't see a value of having sports teams other than entertainment.
> How do you quantity that value and should the government compensate the sports team for that value?
Maybe a good start would be to simply ask the people "how many sporting events have you been to in the last three months?"
If large numbers of people aren't that interested in sport now, they'll probably remain uninterested in the future.
OTOH, if large numbers of people are interested enough to go to games then they'll probably remain interested enough to go to games in the future.
My personal experience (not in the US), is that fewer than 1 in 20 people are interested in going to view live sporting events in a stadium.
At least in Europe, most teams have children organizations, and a lot of kids train. The sports provide motivation for the young kids to exercise and practice, watching high level plays is quite useful to learn tactics as well.
>how many sporting events have you been to in the last three months
It's COVID times, c'mon. Most events have no audience.
Pro soccer might have something, but it's also a rounding error in the American pro sports landscape.
Good point: Why use tax dollars to build a stadium that is going to be mostly empty?
Let's wait to see if interest in sports pick up again.
Entertainment is valuable!
Personally, I think the government spends money in a way that is foolish at best. If the money’s going to be wasted, at least spend it on something I like.
Running a government is also about winning reelection, which means raising money, which means not pissing off the richest people in your area who also have a giant built-in loudspeaker in the form of the current stadium, team, etc.
At this point, publicly-funded stadiums largely amount to bribery. We'll let you keep your cushy elected position if you give us a few hundred million in public money and help us keep up the facade that this was for the public good.
I've always felt there was just too much money (and DoD involvement) in it for "we can take your people to the limits of human capability... purely for entertainment!" to make sense. Do they sell their private advances in sports medicine to defence contractors? Are they some kind of advertisement for super soldiers? If not, what's the gimmick?
Depends on what side you are. On the receiving side or on the spending side. If you're in the Stadium's management, or you're a player for the team, you're about to get rich, and you can buy your next yacht or your 7th Ferrari. Ask me how I know. This also goes if you're a construction contractor, or a local politician(s) who signed off the project.
This is the side benefit of the "pooling the money" and usually the only benefit.
If they've build the stadium with their own money; I would be more than happy for them. Also the local population would be that much richer.
Or a way to punish politicians who sign contracts like this.
One of the issues that is that a mayor or whatever can be elected to a single term then indefinitely sign away the keys to the city.
Either punish the people responsible, or give governments inherent "fuck you" clauses that allows them to back out of terrible contracts or bonds without penalty. Yeah, it makes lending more expensive. But the current system has massive loopholes that are being exploited.
Even if we assume that to be true, you have to also look at the costs: providing the required transportation infrastructure, policing sports fans, cleaning up after them (including vandalism) etc. Making matters worse, the "utility" sports teams bring is limited to a few businesses (hotels, restaurants, pubs, shops selling merchandise etc.), while the costs are paid by the taxpayer, i.e. all residents.
I think we are looking at this the wrong way. I think cities should build and pay for these stadiums. However, it should come with express community benefit. During the off-season, it is a great place to do blood drives, have social service fairs, have people register to vote, have people vote (at a place that is built for high volume), run job training programs, run food drives/pantries, etc. Both the city and the players should be demanding this as part of the deal.
Why not let the teams crowdfund and build their own stadium like any other risky venture without capital?
That's what capital markets and entrepreneurs are for.
Governments are about fixing broken economic games (such as tragedy of the commons, to cite a single example).
My sides!
I dont think sports teams should be treated as "critical infrastructure" and while you might be able to make the ethical case for Police, Fire, etc I am not sure how one would make an ethical case to use violence to fund a sports stadium
So not only do you ave a financial problem with stadiums, you have an ethical one as well
At the end of the day, Sports is not a proper function of government
Since 2011 the Rose Bowl game on Jan 1 has been on ESPN. So two colleges, the majority of which have been public schools, play in a public stadium and the locals can't even watch for free.
I think at the very least they need to make a law that says all events that take place in a publicly funded stadium need to be broadcast on a free local channel that reaches all of the taxpayers who paid for the stadium.
But they’ve gotten more lax about that after they realized that the trick doesn’t work — blackouts don’t really increase attendance.
Sometimes a local entity (city, owner of the team, local businessman) would buy blocks of 10k+ tickets to ensure it could be shown locally.
It's such a short sighted policy. Every kid I grew up with was a Raiders, Dallas, SF fan because they couldn't be a Patriots fan.
What a great way to alienate millions so you can sell 60000 tickets. Every thing these leagues due is tied to an rooted in stupid television contracts that are getting more and more irrelevant.
The only channels I can receive from my house are PBS and Univision. 15 years ago I could receive NBC, ABC, and FOX. FOX never converted to ATSC; NBC converted, but at laughably low power -- if you live on top of a hill and have a high-gain antenna you can pull NBC in with only occasional dropouts. I'm not sure what happened to ABC.
I don't have cable, but for those who do, it was for at least 3 years impossible to watch the local baseball team on cable, because the team's channel was part-owned by one cable company, but our town has a different cable company. Unsurprisingly they struggled to come to a licensing agreement.
This would inevitably result in everyone seeing it for free. If you send it, we can capture it, and redistribute it.
First off, all of these events are already being broadcast on ESPN. So if people were going to steal the stream, they're already doing it.
And secondly, I know some very competent engineers who have no idea how to get pirated content, nor any desire to learn, despite being perfectly able to do so. And then there are they laypeople who not only don't want to learn but probably aren't even capable of doing it if they did learn.
They just don't want to spend any mental space on it. If they can pay to watch they will, and if they can't they won't.
In the Buffalo Bills example from the OP article, it sounds like they're attempting to negotiate directly with the governor. Smart, I suppose, since if the other examples are any indication, the elected official will be more receptive towards giving them money than the taxpayers.
[0]: https://reason.com/2021/11/05/voters-dont-want-to-pay-for-yo...
Keep in mind that the Governor of New York[0] is from Buffalo. I'd imagine that might make a difference.
[0] https://en.wikipedia.org/wiki/Kathy_Hochul#Early_life_and_ed...
Few billion dollars later, construction everywhere, and the Rams are playing their first game. There are only two families remaining out of the 30 that lived here. Rent went up and everyone had to move out east, to a worst neighborhood.
Sure we have a stadium now. But the neighborhood has been completely gentrified.
>When the Rams chose Inglewood as their new home, my apartment complex roared like thunder. It's like we had just won the Superbowl. There was literally fireworks exploding at my door and everyone was happy.
The case I knew from my hometown was that the Church (as in country organization) payed one third. The congregation hat to pay one third as well and the secular municipality also had to pay one third.
In Munich the "Allianz Arena" (named after a big insurance company) for the FC Bayern was also substantially supported by the tax payer. More than one third of the estimated costs were planned to be payed by the government. As they cannot subsidize directly that was mostly the cost of the infrastructure like streets, power, water and so on. The richest socker club in Germany argued that the tax payer has to finance it, as the city would profit from the visitors.
If I remember correctly, BMW got 150 million subsidiaries (from the EU and Germany) for building a new production site near Leipzig as it was seen as helping the development of the former GDR states after the fall of the Berlin Wall.
Seems like a regular thing at any scale for any organization/company with enough lobbying power and influence.
The lack of institutional separation of church and state within Germany surprised me when I lived there. The populace isn't particularly religious on a personal level, but they tolerate a surprising amount of religious interference or intertwining with state institutions. IIRC there are church schools/daycares that are publicly funded as well, and of course the state cooperates with churches for religious taxation (yes, really -- if you're a member of one of those churches, you can't opt out short of leaving that church, they take the money directly out of your paycheck).
If the stadium had been built in the south bay, SF might today be saying, "Whew, we really dodged a bullet there", and meanwhile Twitter and Dropbox and Uber and Airbnb would all be headquartered in Santa Clara county and giving them all their employees' tax revenue.
The area around Levi's Stadium didn't really have much latent potential waiting to be unleashed.
Rather (like in Baltimore and San Diego), the new stadium revitalized a neighborhood whose original reason for being had mostly dried up, bringing enough business to support the (re)emergence of nearby restaurants and other amenities, and those investments in the neighborhood made it an attractive place to have offices that eventually became the new primary source of support for the restaurants, condos, hotel, etc.
The stadium was what broke the neighborhood out of the chicken-and-egg quandary.
This is part of why I stepped away from sports couldn't be happier.
They enrich the owners and drain the locals. I lived in downtown St. Louis when the Cards were in the World Series (2011) and the benefit to local restaurants + bars was minimal. There'd be a flood of traffic to get to the stadium, and another flood out - very little spillover to local bars and restaurants around the stadium. (Not none, but not the rosy picture painted when they talk about driving business to local establishments, either.)
Sure, we have that Metaface company, a few little robin hoods, and those people who venture onto the sand dunes.
But where can two teams of world class hackers fight it out to the finish? Nowhere, I tell you!
There is some underused land in Bedwell Bayfront Park, at the end of Marsh Road.
It gets a few hikers, some ham radio people on Field Day, and not much else?
We can build our Hackerdome there, and insure that hackers will always be welcome to compete in Menlo Park!
All we need is your support and your tax dollars. Vote YES to support the Hackerdome!
I've got analog bass that'll make you cry and enough compute power to model some pretty weird shit. I'm not sure if I'm a world class hacker, but I think the venue should be looking more at folks who win demoscene compos than top 40 acts. Maybe get top 40 acts to work with demoscene cats.
I'm also not as good as those folks but I'm fine with tipping my hand here and see if anyone else is thinking the same thing. I've got a plan and the tools! Lets go.
That's Proposition 1337 then?
No, you need a physical space.
This is why it is so important to have public funding for the Hackerdome. We need a place where two teams of hackers can compete to see who is the best, and who should go down in shame.
And we can do it all under standardized conditions.
This is too important to leave to the private market. Vote YES now!
Ive been dying for covid to be over forever so I can start going to triple A baseball games. Id rather watch semi-normal humans play than a bunch of millionaires.
I find it weird this happens in the US, where there is such an emphasis on not providing things other countries may see as a state function (healthcare, public transport...). It's not just the US of course, but it seems to be most apparent there.
But like, cities do all sorts of things that aren't economically sound. Who am I to say what they should do? If the taxpayers/voters/etc want to spend their money on a stadium, that's fine, as long as they know it's unlikely to make economic sense. Large stadiums are a prestige project, and those often don't make a lot of economic sense (and sometimes don't meet any of their other goals, either).
A voter and a taxpayer? I mean, sure, like everything (hopefully) it's subject to democratic forces and what the local people want. But there's endless debate over what the state should and shouldn't get involved in. I and my vote, (not that I am eligible right now, as a recent migrant) think this falls on the "shouldn't" side, where community facilities, public transport etc fall more on the "should" side.
> as long as they know it's unlikely to make economic sense
I guess that's the thing - is it made abundantly clear that these things are likely to be a net negative? That those of us not into sports are going to be footing the bill equally and not benefiting from and side-effects? Perhaps it should be more so.
Provide free public transport?
Provide better health care to the residents? Heck, how about just providing health care!
Provide bountiful resources to schools to improve education?
Oh, wait a sec, I forgot. Those suggestions are things which are economically sound. Sorry, my mistake.
You're a citizen who can argue for it.
Of course ultimately, cities are democracies and can decide to give away money to private sports teams, I'm not gonna dispute their right to do so.
But I'll definitely argue that it's really dumb to do that.
Looks more like they are less good at hiding it or don't need to. In the town's around here the cities usually bail out the sport teams after they go bankrupt (and thus don't) or put the stadiums into massive infrastructure plans so it gets murky how much was spent on it with public funds. Fortunately the trend seems to go towards letting the football (original, not the US version) clubs drown in their own mess more and more but it's far from over.
Also it isn't even in the same ballpark between bailing out a club that's in debt and getting the club in return, and building new a stadium for a billion or more USD, and getting hope in return.
That’s not to say the government should also have to pay, but the idea of sports teams acting like any other consumer of commercial real estate is clearly off.
To my mind the sports team would also have to pay for the infrastructure improvements etc and knock-on costs too. But then I really have little time for professional sports!
Removes tongue from cheek
- You have poor shitty neighborhoods
- Subsidize building of a stadium in said shithole, and watch the dollars come in.
- You’ll have increased commerce and development of surrounding area with ample employment for said shitty neighborhood residents.
We don’t need recent history to post mortem this, they figured out it actually doesn’t improve the region much a long time ago.
———
The only thing that reasonably works is gentrification, but, well, you know … that’s racist. How do you solve it? I don’t know, white people seem to have the money. We have to start much higher up to root cause analyze this, and while I’m annoyed by wokeness, root causing this kind of more or less leads us to ‘why the fuck are there so many white people with money’?.
Anyways, stadiums. It’s just a bug way down the ladder.
Have fun going to Yankee Stadium in the middle of the fucking South Bronx. Utopian shit never works.
John Oliver made a much better case than I ever could in a HN comment. It also answers "why do the white people have so much money" question.
We (Hungary) are spending huge amounts of public money on building stadiums everywhere (dozens and dozens of them). On the linked picture you can see a large-ish stadium built in a small town with a population of 2000 people. The marked place is the house of our prime minister :D He likes soccer.
I am interested to know the actual net effect of FIFA World Cup 2026 for example, but the post doesn’t seem to focus much on basketball, hockey, soccer, or baseball.
One is the problem that governments make investments, and private firms are the primary beneficiaries. This exists broadly. In some instances, it feels fine. Governments are supposed to make investments that benefit the economy. Roads, ports, fiber, etc.
This gets sticky when it's a select group, monopoly or cabal that gets most of the benefit. Many national or regional postal systems currently have this dilemma. Postal systems need major public investment to keep up with modern e-commerce. AMZN & BABA, the world richest firms, are the main beneficiaries.
The point at which people seem to stop and challenge is often when things get explicit. Sports stadiums are that. Team owners make explicit demands, or threaten local polities. That gets people upset.
Imo, the only way to deal with these is returning "hardball" tactics. Make hard demands, like control of key assets (eg the team's brand/IP) in return for investments. Threaten financial ruin of owners' investments back. Legislate away contractual lock-ins.
No one likes to be strongarmed. That's why people are so infuriated by "give us money or we take your team."
Here's the schedule at NRG Park, the stadium where the Houston Texans play.
https://www.nrgpark.com/event-calendar/
They're currently hosting the Houston Rodeo and have pretty big concerts every night for the next few days after already having events every night for the few days before. There's literally a massive rodeo going on on the grounds around it and in it. Then there's a large auto auction, then a lot of other shows going on. There's 21 days of events going on in the next 46 days, meaning something is going on in that stadium ~46% of the time in the next month and a half.
Take a look at how full the calendar is for American Airlines Center, the stadium where the Dallas Stars (NHL) and Dallas Mavericks (NBA) play.
https://www.americanairlinescenter.com/events
Once again, a lot of things going on separate from both teams, and that's while both teams are actively playing season games as well!
These stadiums aren't just for a single sport.
https://www.youtube.com/watch?v=h1LDjTgMEGU
https://www.youtube.com/watch?v=VMQsYENfWJ8
https://www.youtube.com/watch?v=L5x3ECFemvk
"If the economic benefits of the proposed development turn out to be as the mayor suggests, he would be the first mayor in the history of such projects to be correctly predict the effects."
The beneficiaries of these projects never end up being who the backers say they will be. And the beneficiaries who they actually are designed for are never the ones being touted.
If economic benefit for the city were the motivation, let the developers put up their money to pay the difference if the economic benefits don't turn out to be as they projected.
I've been an athlete and enjoyed being on travel teams, and those experiences helped me develop as a person, so I'm not saying sports arent useful training, but I have a hard time justifying the whole student body paying for those kids to run around.
Cities need to invest in community sport and facilities for community sport. Yes there is also an infrastructure or building aspect to this but not giant stadiums. That is families, kids, tens playing (add sport of your choice). Cities should support those clubs that do this kind of work which is often shouldered by volunteers.
Once it gets to stadiums that are used by clubs with payed players. It is a business and the business should pay for it.
We've seen this happen time and time again.
I wonder how viable government regulation around this would be, to effectively ban the concept of moving a sports club by making the barriers to moving so high that no one would ever want to do it unless the team was in genuine financial distress.
So benefits that are absolutely standard like universal healthcare, employment protection, minimum holidays, parental leave etc. are very limited.
Meanwhile the government builds stadiums for commercial sports businesses, runs airports and harbours so that commercial airlines and shipping lines can use them, implements strict protectionist legislation even in industries which operate fine in other 1st world countries without such legislation, and local authorities offer massive tax breaks to try and attract companies.
The alternative is spending money on image campaigns and other fluff marketing. Once you realize that every time a city is (positively) mentionen in news, it is "earned media", the whole calcuation shifts a lot around.
But to what end? Thanks to sport I know of lots of US cities like Green Bay, Buffalo, Cincinnati, Cleveland, Kansas City etc. that I might not otherwise ever have given any thought. But what is the next step after that? I'm certainly not going to holiday there because they have a pretty good (or used to be good) team I've heard of.
The name recognition is not going to be the core decision point for someone to spend holidays there or relocate there.
But if you are relocating to a city and have three to choose from where non stands out in particular you might assume that the one with the stronger sports team is more vibrant or dynamic than the others.
It’s up to the people of a city how much they want to spend and on what.
Sports happen to be very popular with a large group of people who aren’t interested in the rest of what a city spends on. You can have those people watching sports or you can have them complaining about the rest of the spending because they didn’t get their piece of the pie.
> Voters in Denver, Colorado, approved ballot measures on Tuesday authorizing the city government to issue bonds to spruce up parks, renovate homeless shelters, and upgrade public transit.
> They rejected just one portion of Mayor Michael Hancock's five-part, $450 million bond proposal: the one that would have directed $190 million of that borrowing toward the construction of a new multi-use stadium near the city's hip River North neighborhood. While the first four parts of Hancock's proposal won support from at least 60 percent of voters, 58 percent rejected the stadium subsidy, according to The Denver Post's election tracker.
> ...
> Meanwhile, 65 percent of voters in Augusta, Georgia, rejected a similar bond issue that would have seen the city take on debt to fund the construction of a $235 million stadium for a yet-to-be-determined future occupant (possibly a minor league hockey team). The cost of the new stadium was projected to add about $100 to the average property tax bill in the city—all to create "a handful of new permanent jobs," according to The Augusta Chronicle. Who wouldn't vote for that?
> But voters in Augusta might not have the final say on whether their wallets get raided for the project. Brad Usry, vice chairman of the county authority that would run the new stadium, told the Chronicle last month that a "no" vote would "only delay the project so the authority can find other means of funding it."
> So voters were asked to give their approval for the stadium project, but rejecting it apparently doesn't count? Cool democracy you have there, Augusta.
https://reason.com/2021/11/05/voters-dont-want-to-pay-for-yo...
On the other hand, it seems like this deal with the Buffalo Bills is being decided by the governor, rather than a public referendum.
Many cities have votes on these things. The city I left didn’t fund stadiums, but wasted money on all sorts of other crap.
You can always vote with your feet. You don’t have to pay for a stadium if you don’t want to.
It would be nice if there was more transparency ("Buffalo will pay for the stadium because we know you live the Bills one million times more than all your elected officials put together") or if cities banded together against paying these bribes but that's life.
I did really like the ideas for federal level reforms, but one component the author missed is that a stadium has workforce with a fairly unique composition. If you replace it with an office park or museum will they need dozens of hot dog and beer vendors, a massive athletic training staff, a landscaping staff, outdoor lighting technicians, etc? These are working class or middle class people who will be scrambling for a limited job pool. Getting rid of 100 janitors and adding 100 web developers has a cost to it, because it will require 200 people to either move or retrain.
Further, stadiums are often used for more than just sports. They're a venue for concerts, fireworks shows, and many other things.
People who buy things like season tickets pay for most of the rest of the money the city wastes, why not get some back?
Because if a sports stadium was, you know, profitable then there would be businesses tripping over themselves to build them with private money. Instead, it becomes a big lobbying game where a bunch of bigshots all skim money from everybody.
The Chargers were a great bad example with idiocies like not televising a game locally if the tickets didn't sell out and the city having to backstop some number of tickets. San Diego finally managed to kick them to the curb and good riddance.
I no fan of Los Angeles, but I'm sorry that Dean Spanos and his cronies infested LA after we kicked him out.
Because it's a poor use of public funds to directly subsidize private profit of one particular company/team.
Major sports organizations and franchises are rich enough to handle their own expenses, they don't actually need public help. They'll take it if they can get it, of course, because why wouldn't they? It's free money! But we're under no obligation to give it to them.
> Since the founding of America, its people and its economy have moved steadily westwards and, later, southwards. Recently, people and businesses have flocked to Sun Belt states, while cities in America’s old industrial heartland are struggling. What makes American cities boom and bust?
they give the example of Pittsburgh investing in "Eds and Meds" -- education and healthcare -- to regrow the city's economy after the decline of steel manufacturing
https://podcasts.apple.com/us/podcast/checks-and-balance-cit...
It doesn't matter if it's a stadium, a hospital or a subway.
I guess it would be comparable to countries trying to attract businesses by giving them tax breaks?
https://fortune.com/2020/08/23/amazon-coronavirus-taxes-loca...
The bit about "paying to destroy mainstreet" is of course nonsense. Amazon's business would exist either way.
This article is about the US, all the references and the article it self point to that.
Do not rope in international cities where sporting events have different impacts and are potentially funded differently. Thank you. :)
The stadium isn't even located in the city of Buffalo but well outside of it.
If ~nobody is mentioning, let alone discussing, the actual priorities of a large fraction of the voters, then rational public policy outcomes may prove rather rare.
The combination of brazen lies about costs, and deep "nobody mentions that" motivations are the big problem with the stadiums.
Also are cities really investing in something better?
Oakland lost both Raiders and Warriors. It seems like Oakland spend that money on pension benefits of city employees. And they started laying off teachers. If you ask me: if you cannot spend money on schools (or anything useful) build a stadium.
But this is politic: stadiums are easy target but do know that city will probably mismanage the money any way.
I’m just explaining how dynamic goes here: the cities will be still be funding stadiums because electorate will not trust them when they say “we will spend on x”.
Peak populism.
I don't think that that is true anymore. It used to be, but sports is competing for eyeballs with all the other entertainment out there.
Yeah, sure, sports had a large audience when people did not have games, instant messaging, social sites, Netflix, AmzPrime, Hulu and more in the palm of their hands.
Basically, sports is in competition with all the other forms of entertainment. I'm looking around my circle of friends, family and acquaintances, and the only ones who are interested are:
1. Those with children on some team in school, and then they're only interested in that particular sport, and only when their children's teams are playing.
2. The older folk who were supporters all their lives, and will continue being supporters.
3. The people betting on matches.
I know of only one family that actually is into sport, and regularly follows all the soccer and/or cricket matches that come around. The others have cancelled their sat-tv and just use netflix, amz-prime and the internet for entertainment.
In 2021, 95 of the top 100 most-watched TV broadcasts in the US were sports. More people watched the Raiders play on Thanksgiving than watched the presidential inauguration.
1. https://www.sportsbusinessjournal.com/Journal/Issues/2022/01...
Sure, the final event of a season always has a large number of viewers (1 in 3, according to your stats), just like any other special event, but
a) We aren't looking at only the outliers (I would guess an average soapie episode has more viewers than an average match)
b) A single sporting event that has $FOO million viewers does not mean that $FOO million people are following the sport. My experience is that there are large media campaigns to get people to tune in for the large events. They tune out again once the event is over.
There is for every city to decide if funding some private business is in the interest of its inhabitants or not.
Fast forward 10 (ish) years to 2022 the floated value of a new stadium is looking to be between 1.4-1.8B to mirror the other stadiums build in the state in NYC (can't off hand remember which ones are new). The average is about 1.6% paid out of local / state taxes, while it seems (perception) that the state is willing to pay an unprecedented 25-50% of the new stadium from local coffers.
I'm not sure if anyone has looked around, but in the last two years I think the population dropped by 300K in NYS and Upstate (everything East of Rochester) and Western New York (everything Rochester and west) has been dying slowly.
I think Buffalo has seen a mediocre rise back to glory under the "Billion to Buffalo" under Cuomo's governance, but tons of that left the state with Tesla's Riverbend plant and honestly real failure to deliver on its promises. The rest went to our startup and industrial technology companies with sprinkles into our medical institutions (our real meat and po-tats around these parts).
The problem is - we have no money. Taxes are high (without blaming a party, but a culture problem in NYS) and social programs are abused. Billions in the pocket of the wealthy need to be spent and the local pockets need to contribute to their profits vs. being blead for them.
Really hate living in a state that just hates business like we do here, but .. this what you get. Detroit, Cleveland, and Buffalo will all eventually fail on some level because of the continued regime's need to keep the status going.
Someone really needs to speak truth to power, or its going to crush our country economically as capitalism is more oligarch feeling than Representative Democracy.
Readability is dead.
And I couldn't agree more with a lot of it. I think the "What Can Be Done?" section is really good. I think there should be federal incentives for forcing cities to work together on their contracts with these sports teams to make their deals more fair. I don't know how that would work?
But, for example, one of the downsides listed in the article is that most of the jobs created by the stadium are low-paying jobs. Not just the construction work itself but maintaining the stadium. Janitors, cashiers, mechanics, etc. But that's not an issue /with the stadium itself/ that's an issue with ALL of the country itself. It's not like the stadium not being there is going to give janitors higher paying jobs. Whether they work low-paying and hardly livable jobs for the stadium or for a contractor that has deals with Google doesn't make a difference. It's al ow paying job that can't sustain a living wage. That's not on the stadium. That's not on the city making a deal with NFL. That's an irrelevant point. If you want to make those 10,000 stadium jobs better for the community, don't choose to NOT put a stadium there. Choose to increase the quality of life for the residents of the city.
But, I think what taints my perspective more than anything is being from Chicago and having lived in Texas. I know of people that are proud of being Chicagoans, that love going to Wrigleyville, that love being from the North/South based on what team they follow. I know of people in Texas that are proud of their town because of how good their football team was. I know of people who went to A&M because of its sports teams. I know of people who travel there specifically to watch a game. I've seen content from their Fightin' Texas Aggie Band that's made me feel inspired.
I think part of it IS economic and I know I'm biased towards success stories. But I do think there absolutely is an emotional component to it. And if you think a government shouldn't be making emotional decisions, that's totally fine. I don't disagree with you at all. I wish I could agree with you harder, actually. I just can't put myself completely in the camp of "cities should not pay for new stadiums."