Why do cities fund NFL stadiuims?

[bigtendominator]

Here in Vegas there is a debate about if they should pay for an MLS stadium. How can any city pay for an NFL stadium.

The TV deals for the NFL are the following:
ESPN 1.9B
FOX 1.1B
CBS 1.0B
NBC .950B
DIRECTV 1.4B

Each owner makes $198 million before selling a ticket, concession, parking or advertising. How the hell can any city be stupid enough to pay for an NFL stadium, when these guys are netting nearly $100 million before taxes per year.

 

[JohnnyMac]

Because politicians are stupid whores.

 

[Shub]

The NFL itself, under a little known provision in a 50-year-old law, operates as a not-for-profit business. It's exempt from anti-trust laws, and it has a long history of convincing local and state governments to pay for much or all of the cost of constructing stadiums.

 

[Mr_Mark]

It will bring in revenue for the city wont it?

 

[bigtendominator]

It will bring in revenue for the city wont it?

Wouldn't hundred of different businesses do the same?

 

[Vlad the Impaler]

I agree especially when they tear down a perfectly fine stadium just to build a much nicer one. If the citizens pay for it, they should be able to use it. I have always said the owners and players should be paying for these collossal giant stadiums. I haven't went to a game in a decade. It is better on TV and the owners rather me be watching on TV than go there in person hence the TV deals. These stadiums are just a waste of money and I think anymore with owners, it just becomes a "my dick is bigger" race to see who can top the previously built top of the line stadium. And everyone has to half a retractable roof now. And they use the stadium what 10 times a year for its intended purpose. If they host a concert there, the same people that paid money to build it still have to pay top dollar to get in while Jerry Jones gets the $$ from it.

Its harder to name teams that have not had a new stadium built in the last 12 to 15 years than to name teams that have. In Indy, colts got a new stadium a few years ago. Nothing was wrong with old one. Pacers got a new arena, nothing was wrong with old one. Even the Triple A baseball team got built a brand new stadium in the late 90's.

 

[groundhog11]

it will bring in a ton of b&o taxes for the city....it all trickles down from hotels, resturants, small business....then there is most likely some type of hidden surcharge tax somewhere, like staying at a hotel which will add a another 5-10%.

 

[Willie99]

Because politicians are stupid whores.

wow, I totally concur

they're buying votes

 

[Acebb]

The use of public funds to lure or keep teams begs several questions, the foremost of which is, "Are these good investments for cities?"

The short answer to this question is "No." When studying this issue, almost all economists and development specialists (at least those who work independently and not for a chamber of commerce or similar organization) conclude that the rate of return a city or metropolitan area receives for its investment is generally below that of alternative projects. In addition, evidence suggests that cities and metro areas that have invested heavily in sports stadiums and arenas have, on average, experienced slower income growth than those that have not.

https://www.stlouisfed.org/publications/re/articles/?id=468

 

[Acebb]

In Stadium Building Spree, U.S. Taxpayers Lose $4 Billion

http://www.bloomberg.com/news/2012-09-05/in-stadium-building-spree-u-s-taxpayers-lose-4-billion.html

 

[Acebb]

There is only 1 reason this is done, for political patronage.

Here is a good article on the scandal surrounding the building of the Miami Marlins stadium

http://www.miaminewtimes.com/2011-05-05/news/six-lies-about-the-marlins-stadium/full/

 

[5teamparlay]

Because another nearby city will as well.


You'd have egg on face otherwise.

 

[bigtendominator]

Because another nearby city will as well.


You'd have egg on face otherwise.

So let the other stupid cities build them! Who gives a fuck! Do you know anything about economics? If you did, you wouldn't have made such a stupid statement.

 

[Bourn]

Dallas let the Cowboys go to Arlington.

 

[JDeuce]

Still can't believe the freaking Falcons are getting a new one. The Georgia Dome is what, 25 years old? Didn't realize the city of Atlanta is so flush with cash.

 

[bigtendominator]

Still can't believe the freaking Falcons are getting a new one. The Georgia Dome is what, 25 years old? Didn't realize the city of Atlanta is so flush with cash.

Wait, what? The Falcons are getting a new stadium?

I can't believe braves are getting a new ballpark, is that still happening?

 

[SECplayer]

The city ends up paying for a new stadium. Then the owner sells the naming rights of the stadium to fedex or whoever and sticks the $50 million in his pocket. Nice.

Also, I've seen Jerry Jones and the Cowboys mentioned a couple times in this thread, but I don't think Dallas/Arlington paid for that stadium. I thought Jerry pretty much financed the whole thing based on ticket demand/pledges, etc... I could be dead wrong about that though.

 

[SECplayer]

Wait, what? The Falcons are getting a new stadium?

I can't believe braves are getting a new ballpark, is that still happening?

Yep. Falcons getting new stadium right next to Georgia Dome.

And Braves getting a new stadium in northern part of city.

 

[Bourn]

The city ends up paying for a new stadium. Then the owner sells the naming rights of the stadium to fedex or whoever and sticks the $50 million in his pocket. Nice.

Also, I've seen Jerry Jones and the Cowboys mentioned a couple times in this thread, but I don't think Dallas/Arlington paid for that stadium. I thought Jerry pretty much financed the whole thing based on ticket demand/pledges, etc... I could be dead wrong about that though.

Originally estimated to cost $650 million, the stadium's current construction cost was $1.15 billion,[20] making it one of the most expensive sports venues ever built. To aid Cowboys owner and general manager Jerry Jones in paying the construction costs of the new stadium, Arlington voters approved the increase of the city's sales tax by 0.5 percent, the hotel occupancy tax by 2 percent, and car rental tax by 5 percent. The City of Arlington provided over $325 million (including interest) in bonds as funding,[20][21] and Jones covered any cost overruns. Also, the NFL provided the Cowboys with an additional $150 million loan, following its policy for facilitating financing for the construction of new stadiums.[22]

AT&T gave JJ another 150m for naming rights.

 

[Well-Seasoned]

Still can't believe the freaking Falcons are getting a new one. The Georgia Dome is what, 25 years old? Didn't realize the city of Atlanta is so flush with cash.

One of the top economies in the world by city.....6th in USA in GDP, 15th in the entire World Cities by GDP.....Not too bad for a city that was burned to the ground 150 years ago