Justin Inaz interviews me over at On Baseball and the Reds. Here is an excerpt.
Question: I’ve seen reports critiquing the use of public funds for MLB stadium projects. Hamilton county (through a half-cent sales tax increase) has invested an enormous amount of money into revitalizing the Riverfront area, which has included the construction of the Reds’ and the Bengals’ new stadiums. How do you view these sorts of stadium projects, from the perspective of economic return to the cities or counties that pay for them?
JCB: The economic return is zero. I have not seen a single study that shows a positive impact from such efforts. The state of the research is such that if an economist attempted to publish another economic impact study, that journal editor would reject the study for being redundant. Spending on sports replaces spending that would have happened anyway. The idea that these projects confer financial benefits is a myth. Any positive return to taxpayers is non-monetary.
And you don’t need studies to understand this. I go to about five Braves games a year. It’s been 10 years since the Braves started playing at Turner Field (which was the 1996 Olympic Stadium). The area surrounding the stadium is a dump. It’s the type of place where at night, you run red lights just to get out of the area faster. There are no restaurants, bars, or shops. Those things are inside the stadium. The same is true for many stadiums around the country.
I have no problem with a community reaching a political decision that it will chose to raise taxes because its citizens value having a sports team. But, it really bothers me when people argue that these projects are beneficial. It is time to be honest and say, “if you want to pay $5 more in taxes a year, we can host a team or have a nicer stadium.” As long as everyone agrees that this will cost money, not make it, I have no problem with government choosing to fund such projects.
Thanks to Justin for asking me the questions.