In a recent event held at the Milwaukee Brewers ballpark, Wisconsin Governor Tony Evers lauded the baseball team as an integral part of the state’s culture, identity, and economic success before approving $500 million in public aid for the stadium’s renovation. This move is part of a broader trend seen this year, where numerous Major League Baseball and National Football League franchises are pursuing new or upgraded stadiums.
The surge in sports facility construction is driven by the desire to compete with rivals and often involves significant public funding, despite skepticism from economists about stadiums’ positive impact on local economies. While some teams cite the need for repairs, others seek funding for state-of-the-art stadiums, even as public entities continue to pay off debts from previous renovations.
Economist Rob Baade notes that these facilities are not physically obsolete, but teams are pushing for new stadiums due to economic interests. The modern stadium model extends beyond the playing field, providing revenue opportunities from luxury suites, dining, shopping, and other developments. Owners like Stan Kroenke, with his $5 billion football stadium, showcase the potential for private financing and extensive development around the stadium.
However, the push for new stadiums often comes with public funding, as seen with the Kansas City Royals and Tampa Bay Rays unveiling plans for billion-dollar baseball stadiums, accompanied by multi-billion-dollar developments. Teams like the Jacksonville Jaguars, Buffalo Bills, and Tennessee Titans also announced new billion-dollar football stadiums, backed by public funding.
The underlying assumption behind these proposals is the fear that teams might relocate if their demands are not met. The recent approval for the Oakland Athletics to move to Las Vegas highlights this possibility. The A’s new $1.5 billion stadium in Nevada receives $380 million in public funding, emphasizing the tension between teams’ demands and taxpayers’ concerns.
