Publicly Financed Sports Stadiums

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Publicly Financed Sports Stadiums
? FROM THIS ...
TO THIS ?

• Matt Van Name, Bobby Elliott, Tommy Cohen, Thomas
  Turner, Timothy Mudd

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What is Public Financing?

• Funds which are provided from a government
  source, State, local or federal.

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How Stadiums are Financed

• Tax
• Hotel occupancy tax
• Car rental tax
• Gas tax
• Cigarette tax
• Ticket tax
• Sales tax
• Excise tax on tobacco and alcohol
• State income tax credit

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Financing Cont.

• Lottery funds
• Bonds
• Low interest (State)
• No interest (Federal)
• Donate land
• Capital improvements
• Road
• Sewer
• Etc.

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History

• Prior to 1953 every ballpark built for MLB was
  privately funded.
• 19 MLB stadiums built with no money since 1953
• In the 1990s 4 out of 5 spent on stadiums was
  public money.

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Examples

• Miller Park, Milwaukee, WI
• Voters overwhelmingly voted down public subsidies
• Three workers killed in construction
• Cracks in roof that leak
• 399.4 million309.4 million publicly funded

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Examples Cont.

• Camden Yards, Baltimore, MD
• Cost residents of MD 14 million a year
• Stadium makes 3 million a year
• Estimated cost of 78.4 millionactually cost
  106.5 millionall publicly financed
• Considered one of the best examples of public
  financing

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Examples Cont.

• SBC Park, San Francisco, CA
• Privately Financed
• 225 million all privately financed
• Chase Securities 140 million
• Pacific Bell 50 million for naming rights
• 10-15 million from Giants revenue
• Rest from naming, sponsorship, and concession
  rights, charter-seat sales

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Arguments For

• Build community
• Entertainment
• Pride in team
• Sales newspapers
• Jobs--temporary
• Other intangible benefits

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Arguments Against

• Divert funds from other public services
• Subsidies are unfair to tax payers and other
  businesses
• Dead-weight loss
• Stadiums dont produce the economic benefits to
  warrant public subsidies
• Taxpayers dont want it

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Against Cont.

• No new money created
• Low-wage temp jobs created
• No real economic benefit
• Can be privately financed
• Is it a public good ?

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Winners

• Team owners
• Team players
• Surrounding area
• MediaTV, newspaper
• Those involved in the building of stadium
• Politicians

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Losers

• Taxpayers
• Other public servicesfire, police, education
• Other areas town
• Citiesteams leaving
• Tourists to city building stadium

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Resolve

• Use money generated by stadium
• Personal seating licenses (PSLs)
• Luxury/club boxes
• Naming rights
• Ticket taxes
• Owners put forward own money
• Green Bay model
• Public ownership

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Questions?????

• Congress Threatens To Leave D.C. Unless New
  Capitol Is Built"

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Sources

• www.leg.state.mn.us/lrl/issues/sports.asp.
  Resources on Minnesota issues financing
  professional sports facilities. accessed
  3/2/05
• www.newcolonist.com/stadium.html. Raymond J.
  Keating. Baseline welfare cases stadiums,
  subsides and the dole. accessed 3/2/05
• www.breadnotcircus.org/brooking.html. Roger G.
  Moll. Are new stadiums worth the cost?.
  accessed 3/2/05
• http//www.privatization.org/database/policyissues
  /facility_privatefin_stadium.html. Private
  financing of sports stadiums. accessed 4/6/05
• www.dailyrepublican.com/subsidiesdry.html.
  Howard Hobbs. Fresnos new baseball stadium
  better not be paid for with municipal bonds.
  accessed 3/2/05
• www.taxpayersleague.org/issues/stadiums.php.
  Public subsidies for professional sports
  stadiums. accessed 3/2/05