Stadium or Money Pit?
I saw this articleon Yahoo today. It talks about how some New Yorkers (New Jersians?) are already complaining about their new $1.6 billion Meadowlands stadium. I think what they should be complaining about is that the OLDMeadowlands Stadium - you know, the one that is now rubble- is not even paid for yet. Read on:
It’s the gift that keeps on taking. The old Giants Stadium, demolished to make way for New Meadowlands Stadium, still carries about $110 million in debt, or nearly $13 for every New Jersey resident, even though it is now a parking lot…
With more than four decades of evidence to back them up, economists almost uniformly agree that publicly financed stadiums rarely pay for themselves. The notable successes like Camden Yards in Baltimore often involve dedicated taxes or large infusions of private money. Even then, using one tax to finance a stadium can often steer spending away from other, perhaps worthier, projects.
“Stadiums are sold as enormous draws for events, but the economics are clear that they aren’t helping,” said Andrew Moylan, the director of government affairs at the National Taxpayers Union. “It’s another way to add insult to injury for taxpayers.”
Stadiums tend to be boons for the team owners and politcal capital for the politicians, but serve the people rather poorly. How else can you explain the fact that the citizens of NJ and Washington state are still on the hook for demolished stadiums?
Teams should have to stand on their own two feet. If the fans want them, let them support them through TV revenue, ticket prices, merchandise etc. But don’t pretend that new billion dollar stadiums are going to make EVERYONE richer.
