Latest / The Fiscal Policy Podcast with Fexingo: Government Budgets, Stimulus, and Public Spending
Why Government Subsidies for Stadiums Never Pay Off
Lucas and Luna dive into the economics of government subsidies for professional sports stadiums, using the recent $1.2 billion public financing deal for a new NFL stadium in Buffalo as a case study. They break down the promises of job creation and economic boost versus the actual data, which shows these projects rarely generate the returns proponents claim. Lucas explains the concept of substitution effects and how stadium spending often just shifts entertainment dollars. Luna brings in research on stadium cost overruns and the history of teams threatening to relocate. They question why…
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