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Have Public Finance Principles Been Shut Out in Financing New Sports Stadiums for the NFL in the United States?

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Author Info

  • Victor Matheson

    ()
    (Department of Economics, College of the Holy Cross)

  • Robert Baade

    ()
    (Department of Economics and Business, Lake Forest College)

Abstract

Over the past 15 years, new stadiums in the National Football League have been built at an unprecedented rate, and most new facilities have utilized significant public funds. This paper looks at whether the methods used to finance these new facilities honored public finance principles regarding equity, efficiency, and transparency. An examination of the 20 NFL stadiums constructed or refurbished since 1992 reveals a trend towards more voter referendums and an increase reliance on taxation of visitors through hotel and rental car taxes. Although taxation of persons living outside one’s own metropolitan area is appealing, this paper suggests that the benefits of these taxes are not nearly so clear.

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File URL: http://college.holycross.edu/RePEc/hcx/Matheson_PublicFinance.pdf
File Function: IASE Ottawa 2005 paper
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Bibliographic Info

Paper provided by College of the Holy Cross, Department of Economics in its series Working Papers with number 0511.

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Length: 27 pages
Date of creation: Jul 2005
Date of revision:
Handle: RePEc:hcx:wpaper:0511

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Keywords: sports; public finance; stadiums; football; NFL;

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References

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  1. Robert A. Baade, 2003. "Evaluating Subsidies for Professional Sports in the United States and Europe: A Public-Sector Primer," Oxford Review of Economic Policy, Oxford University Press, vol. 19(4), pages 585-597, Winter.
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Cited by:
  1. Victor Matheson, 2006. "Mega-Events: The effect of the world’s biggest sporting events on local, regional, and national economies," Working Papers 0610, College of the Holy Cross, Department of Economics.
  2. Robert Baade & Robert Baumann & Victor Matheson, 2006. "The Economic Consequences of Professional Sports Strikes and Lockouts: Revisited," Working Papers 0609, International Association of Sports Economists;North American Association of Sports Economists.
  3. Daniel, Rascher & Andrew, Schwarz, 2010. "Illustrations of Price Discrimination in Baseball," MPRA Paper 25807, University Library of Munich, Germany.
  4. Robert Baade & Robert Baumann & Victor Matheson, 2005. "Selling the Big Game: Estimating the Economic Impact of Mega-Events through Taxable Sales," Working Papers 0510, College of the Holy Cross, Department of Economics.
  5. Victor Matheson, 2010. "Economics of the Super Bowl," Working Papers 1001, International Association of Sports Economists;North American Association of Sports Economists.

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