This article has been reviewed according to Science X's editorial process and policies. Editors have highlighted the following attributes while ensuring the content's credibility: Americans are crazy about sports. But whether that passion requires taxpayers to subsidize new facilities every time leagues and franchises ask for them needs rigorous scrutiny.
A lot of money is at stake. For 2025, the NFL reported some $14.5 billion in revenue, while MLB collected an estimated $12.2 billion and the NBA earned almost $12 billion. Given these numbers, it's no surprise that leagues and franchises have sought to build bigger, fancier facilities.
But such projects come with hefty price tags. The stadium planned to house the Washington Commanders, for example, is expected to cost $4 billion, while SoFi Stadium in Los Angeles cost $6.75 billion, making it the most expensive NFL stadium in history when it was completed in 2020. At the same time, it's rare for the leagues or franchises that rake in revenue to cover the entire construction cost of new facilities.
In fact, most new sports stadiums receive funding from state or local governments—meaning taxpayers often foot much of the bill. Between 1970 and 2020, taxpayers across the United States and Canada paid some $33 billion toward the construction of sports arenas, roughly 73% of the total cost. The standard approach by leagues and franchises is to offer state and local officials both carrots and sticks.
Policymakers and the public are promised jobs, sustained economic growth, improved infrastructure, increased tax revenues and rising property values. Should public funds fail to materialize, franchises often threaten to move—presumably taking the touted economic benefits with them. As economists, we have to play both sides of the field when it comes to analyzing public policy.
As sports fans and taxpayers, however, we have a vested interest in understanding the economics of using public funds for private sports stadiums. And we believe the promised benefits are vastly overblown. About 75% of Americans watch live sports, whether in person, on TV or on devices, with some fans spending 10 or more hours a week.
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