Games and circuses once were
provided by government. How better to satiate the desire of the Roman masses
than to entertain them in the Arena? Today government builds stadiums to
attract sports franchises for the same purpose. But the American masses seem to
be tiring of transferring billions of dollars to billionaire team owners.
New York City is beset with wealthy supplicants: the Yankees,
Mets, and Jets all want new stadiums. So do the San Diego Chargers. The St.
Louis Cardinals did too, before the legislature rejected most of their
requested public subsidies.
Moreover, several states
have been competing to win the Montreal Expos. Portland, Oregon and Northern Virginia have been in the race. But Washington, D.C. is the winner, Major League Baseball has announced.
An important draw was Mayor Anthony Williams's offer to take $200 million from
city residents for a stadium. He will have to work quickly to ram the measure
through the current City Council since residents are in a less generous
mood. In D.C.'s mid-September primary elections voters in two of the
poorest wards tossed out their pro-stadium councilmen. A city-wide stadium
booster also lost his primary. The winners, including disgraced former mayor
Marion Barry, all oppose taxpayer funding for a modern arena.
Stadium advocates have been
amazingly successful in taking from the poor and giving to the rich. Some
wealthy sports moguls, such as Oakland Raiders football team owner Al Davis,
have turned mulcting taxpayers into an art form. Raymond Keating, chief
economist for the Small Business Survival Committee, estimates that government
has poured well over $20 billion (in current dollars) into sports ventures in
recent decades.
Yet such facilities once
were and continue to be built privately. The only reason more franchise owners
do not construct their own stadiums is because taxpayers so often relieve them
of the necessity of doing so.
But there's no reason to sacrifice the interest of taxpayers to that of sports fans. Stadiums are not a good financial investment. Public finance experts Roger Noll and Andrew Zimbalist concluded:
"no
recent facility appears to have earned anything approaching a reasonable return
on investment and no recent facility has been self-financing in terms of its
impact on net tax revenues.
Even an attractive project
such as Baltimore's
Camden Yards requires upkeep subsidies. Observed F.W. Walz, a Cleveland
city councilman who in 1928 opposed the nation's first subsidized sports
facility: "Of course, they say the stadium will pay for itself, but we've
heard that story before."
Moreover, new sports
projects usually rearrange rather than increase local economic activity and tax
collections. For instance, University of Maryland economists Dennis Coates and Brad Humphreys
estimated that sports-oriented tax revenues and personal earnings from sports
were well under a percent of total revenues and earnings for Baltimore and Maryland.
In fact, sports spending is
primarily substitutionary. Stanford
University economist Roger
Noll figured that only five to ten percent of those attending games live
elsewhere. Local fans divert their outlays from other leisure activities and
other areas within the region.
Thus, government stadium
"investments" have consistently generated meager results. For the
Heartland Institute, Robert Baade and Allen Sanderson looked at a dozen
metropolitan areas and found no net employment hike. Separately Baade reviewed
36 cities and found no net statistical increase in economic growth.
Of course, as long as some
politicians somewhere are willing to make their populations pay, sports moguls
can threaten to leave. But so what? Sometimes the threat is empty. Relocation
is costly and risky, and thus rare. In any case, what city has suffered from
losing a major league team? Los Angeles
prospers without a football franchise; Washington
has lost little without a baseball team. People aren't likely to flee San
Diego if the city council ever has the courage to say no
to endless financial extortion by the Chargers and Padres.
If the only way to prevent a team from moving is to shovel cash into some billionaire sports mogul's hands, it isn't worth it. After his election win, Marion Barry offered some uncommon wisdom: "Unemployment is going up. Jobs are being cut and you want to spend taxpayers' dollars for a stadium? Give me a break."








