Stadium Subsidy - Background

Background

Eighty years ago, stadium subsidies were essentially unheard of, with funding for professional sports stadiums coming from private sources. Over time this situation changed, and today most new or renovated professional sports stadiums are financed at least partly through stadium subsidies. This change has been caused by the increase in bargaining power of professional sports teams at the expense of their host cities. As the years have passed, municipalities have come to love their local professional sports teams. Citizens feel a special bond with their teams and share in a sense of civic pride when they are successful.

At the same time, sports teams have realized their ability to relocate at lower and lower costs. Because local governments feel that keeping their sports teams around is critical to the success of their cities, they comply and grant the stadium subsidies. This process is what has led to the large number of stadiums financed through subsidies that we have today.

Read more about this topic:  Stadium Subsidy

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