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Cities weigh costs and benefits of new stadiums

RU jumped the gun on stadium expansion Sabernomics: Sports Stadiums and Economic Development: A Summary of the Economics Literature Interview with Andrew Zimbalist, Sports Economist The secret benefits of fandom The Stadium Gambit and Local Economic Development [pdf] World Stadiums When the emperor Vespasian began building the Coliseum in 70 CE, he didn't need any tax breaks or other incentives to get started on the work. Almost two millennia later, a number of economists, policy wonks, and citizens groups are calling into question the costs associated with building large stadiums for sports teams. During these difficult financial times, many people are calling into question the notion that these very large and expensive facilities serve as engines for local economic development. Typically, major sports teams have made thinly veiled (or not-so-thinly veiled) motions to depart from their home city, and cities have responded by offering various tax breaks, stadium financing assistance, and other incentives. New York is struggling with this issue right now, as the New York Times reported that the public costs involved with the new stadiums for the New York Yankees and the New York Mets have risen from $281 million to $485 million in the past three years. These monies were dedicated for related infrastructure costs (such as garages and transportation improvements), and they do not include an estimated $480 million in city, state, and federal tax breaks. Of course, this situation is not unique to New York, as other cities, including Seattle and Chicago, have grappled with this dilemma multiple times over the past several decades. The first link will take visitors to a piece on the subject of funding for the two stadiums in New York from this Tuesday's New York Times. The second link leads to a recent piece from by Jay Jefferson Cooke about the controversy surrounding Rutgers University's expansion of their football stadium. Moving on, the third link will whisk users away to a brief review of the academic literature on the economic impact of sports stadiums by Professor Dennis Coates of the University of Maryland, Baltimore County. The fourth link leads to a great interview with sports economist Andrew Zimbalist, offered courtesy of The Biz of Baseball site. The fifth link will take users to an intriguing piece from the Boston Globe on the potential side benefits of supporting a winning sports team. The sixth link leads to a compelling piece of commentary on the subject of stadiums and local economic development offered as part of The Cato Institute's policy paper series. Finally, the last link leads to the World Stadiums site, which can be used as a reference guide to the thousands of stadiums across the globe.
Alternate Title
Tax Breaks for New York Stadiums Are Questioned
Scout Publication
Date Issued
November 7th, 2008
Date of Scout Publication
November 7th, 2008
Date Of Record Creation
November 7th, 2008 at 8:03am
Date Of Record Release
November 16th, 2008 at 5:21pm
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