This One Will Be Different

Abstract This book presents a comprehensive analysis of stadium financing in the US, focusing principally on the significant role of government underwriting, examining why venue subsidies are prevalent, and offering recommendations for policy reform. Public contributions have increased substantially over time, as facilities have evolved from privately financed ballparks, to multipurpose municipal superstadiums, and then to opulent single-sport structures that cater to wealthy spectators. This progression has resulted in escalating taxpayer support: $50 billion has so far been devoted to major-league stadium projects, and if public financing continues on its current trajectory, the cumulative total will approach $100 billion by the end of the 2030s. 50 years of research has demonstrated that sports venues are poor public investments; however, standard economic explanations for the persistence of this inadvisable practice—such as the monopoly power of sports leagues and special interest politics—do not well describe how subsidies are awarded in practice. Government allocations are largely determined by amenable representatives who directly benefit from the perks of sports advocacy. The book concludes that reforming policy requires an expanded understanding of why stadiums are poor public investments—related spending reflects the reallocation of existing, not new, economic activity—and advocates that venue subsidies be considered directly by voters through referendums. Summaries of academic research evidence are accompanied by an illustrative case study of the Atlanta Braves’s 2017 relocation to Truist (SunTrust) Park in Cobb County, Georgia. The book includes an historical data appendix that documents funding for all modern US major-league sports venues.