Do New Stadiums Really Spur Economic Development?

Baseball team owners are having less and less success marketing their teams in new cities, or generating public funding for stadium construction. What gives?

1 minute read

March 10, 2006, 6:00 AM PST

By David Gest


"Local and state governments are putting up increasing resistance to the idea of paying for new baseball stadiums. The Minnesota Twins have spent a decade trying to win public funds for a new ballpark but have been rebuffed by the legislature every time, most recently last year. The Marlins began seeking new suitors after the Florida legislature refused to contribute state money to build the team a new home. And the District of Columbia's City Council has already demanded, and won, multiple renegotiations of the deal that brought the Washington Nationals to town last year."

"Communities are playing hardball with the national pastime largely as a result of two developments. First, elected officials have begun to accept academic research showing that the economic benefits of subsidizing stadiums doesn't justify the costs. Second, threats by team owners to leave town are losing their potency because it is widely known that there are very few attractive markets for them to move to. Against this backdrop, baseball's supporters may have to turn to a different argument: that the sport is worth subsidizing simply because it is integral to a community’s quality of life."

Wednesday, March 8, 2006 in Governing

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