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Bad Deals

A fine gesture by the good folks from Vote No Stadium Tax.

News today from Bloomberg...an article about what a rip-off the Stadium Racket is:

http://www.bloomberg.com/news/2012-11-06/stadiums-cost-taxpayers-extra-1...

Public Disadvantage
The public is at a disadvantage in negotiating those deals with sports teams and leagues, which have a monopoly on the supply of franchises and opaque finances, Long writes. The total cost of sport facilities has received little attention from researchers in part “because most economic analyses demonstrate that sports facilities produce very few or no net new economic benefits relative to construction costs alone, and so, in this sense, more accurate cost estimates would only serve to reinforce a case already made.”

Public officials shouldn’t spend any more than necessary to secure the participation of the local team, she writes. Small cities tend to fare worse than larger ones, because they either have to offer more money to keep an existing franchise from moving to a larger market, or they have to put up more to compensate a team moving from a larger market.
Long concludes that, regardless of profit-sharing or rent, “public partners should avoid paying building costs.”

“Land and infrastructure you help with,” she said in a telephone interview. “The building? Let them go it alone.”

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