The financials on this are settled. Sports stadiums are an awful financial investment. However, running a government is not all about making sound financial investments. Sometimes it is about pooling resources to provide a joint benefit to society. Other times it is about trying to price in externalities to allow the market to do its work. These two issues are not as settled as the investment angle and are almost never discussed. Sports teams provide utility to people in the region, including people who never pay a cent for a ticket or merchandise. How do you quantity that value and should the government compensate the sports team for that value? I don't know the right answer, but I would like to see some economists at least engage with that aspect of these decisions.
Also the only way to stop these gifts to private companies is likely with a new federal law banning them. It is simple game theory. These businesses will go where the profit is. Any city or state that refuses to pay will lose out until every city or state refuses to pay. The best way to force that is with a federal ban.
Also the only way to stop these gifts to private companies is likely with a new federal law banning them. It is simple game theory. These businesses will go where the profit is. Any city or state that refuses to pay will lose out until every city or state refuses to pay. The best way to force that is with a federal ban.