Tax-Subsidized Sports Stadiums

This research examines whether such tax-subsidized sports stadiums and team benefits are worth the investment. It is argued that in most situations such investments amount to nothing more than "welfare for the rich" and that the public rarely gets much return on its investment and, in fact, loses out in the deal.

A welfare system exists in this country that transfers hundreds of millions of dollars from taxpayers to wealthy investors and their extraordinarily well-paid employees. Who are these individuals profiting from this life on the dole? They are the owners of North America's professional sports teams and the athletes who play in each of the four major sports leagues (baseball, basketball, football, and hockey). This welfare system exists--indeed it thrives and continues to grow--because state and local government leaders, dazzled by promises of economic growth from sports, mesmerized by visions of enhanced images for their communities, and captivated by a mythology of the importance of professional sports, have failed to do

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taxpayers). The Seattle Mariners, long a financially weak team, were sold in 1981 for $13 million and again in 1988 for $89.5 million ($77.5 million changed hands with the buyer taking over $12 million in liabilities). In 1992, they were sold again for $106 million to a group of local businesses that offered to invest an additional $19 million in the team. The Texas Rangers, also a weak team, were sold for $10.5 million in 1974 and for $79 million in 1989. NFL Team Owner Assets MLB owners are not the only investors in sports with appreciating assets. NFL team owners have found their investments to be appreciating as well. The actual market value of NFL teams is probably best illustrated by the $175 million Jeff Lurie paid for the Philadelphia Eagles in 1994. Financial World magazine estimated the team's value in 1992 to be $149 million, but that figure, as illustrated by the 1994 price, was probably a bit conservative. In terms of understanding the value of an NFL franchise, it is also instructive to point out that the Eagles are not a perennial champion (Rosentraub, 1997, pp. 138-139). Wealth has been growing for team owners not only in terms of the value of their franchises but from the fees charged to individuals or groups w
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Some common words found in the essay are:
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Approximate Word count = 4258
Approximate Pages = 17 (250 words per page)

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