General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsWhy the federal government should stop spending billions on private sports stadiums
BrookingsBecause the interest earned on the municipal bonds is exempt from federal taxes, a large amount of tax revenue that would have been collectedhad the bonds been issued as taxablewent toward the construction of the stadium. In other words, the Yankees received a federal subsidy to build their stadium. How much? About $431 million. Thats a lot of money, but it gets worse.
The loss in federal tax revenues was even higher than the subsidy to the stadium. High-income taxpayers holding the bonds receive a windfall tax break, resulting in an even greater loss of revenue to the federal government. In the case of Yankee Stadium, the additional loss was $61 million. That is, the federal government subsidized the construction of Yankee Stadium to the tune of $431 million federal taxpayer dollars, and high-income bond holders received an additional $61 million.
The Yankees, of course, arent the only team to finance their stadium using tax-exempt municipal bonds. Since 2000, 35 other professional sports stadiums have also been financed with tax-exempt bonds.
dameatball
(7,397 posts)I watched the DeVoss family hold up the city of Orlando and surrounding counties twice for arenas they could afford to build themselves. I can't speak to the tax question. But I can tell you most of the people who were displaced to build these monstrosities were POC and poor.
Algernon Moncrieff
(5,790 posts)In general terms, if you can afford a football team, you can build a stadium.
If government wants to get into subsidies, have them go into the poorest urban and rural areas, and foot the bill for a major name grocery store ( with in house pharmacy) to open shop. Have government subsidise some urgent care medical and dental clinics in areas with no doctors or dentists.
Hoyt
(54,770 posts)On other hand, if it would have been put off for years without breaks, it might have been a worthy stimulus at time.
Of course, I can think of better things to spend it on for good of society. But they arent very popular with those who put big deals together.
johnnyrocket
(1,773 posts)They are shaking down public officials to freeload from the state to the tune of billions.
jmowreader
(50,557 posts)Who receives a bigger tax break:
1) Sports stadiums, which create jobs, draw business and industry to an area, make people happy and are a source of civic pride
or
2) Fundamentalist churches, who would strip you of your civil rights in a New York minute if those rights conflicted with their interpretation of the King James Bible
Incidentally, you do realize Yankee Stadium, which gets used probably 100 times a year, cost about what 25 F-35 fighters do? And the F-35, if all goes well and we quit electing Republicans, may NEVER be used for its intended purpose.
Scruffy1
(3,256 posts)There might be one somewhere, but I've read a lot of them and not seen it. They always claim these whe the billionaires come asking for a handout.
Algernon Moncrieff
(5,790 posts)Think about the old Memorial Stadium in Baltimore. A now defunct multi-purpose venue.
It hosted the Orioles
It hosted the Colts, then a USFL team, then a CFL team briefly.
So year round - 88 dates? Maybe some more if a team made the playoffs.
Contrast: An NFL Only stadium. I think the NFL stadium Washington plays in gets used for like 10 dates per year. Occasionally, they do a neutral site football game there.