Publicly financed stadiums are a recurring theme in the U.S., despite evidence that the economic returns are often underwhelming. Take Las Vegas’s Allegiant Stadium, built in 2020 at a staggering cost of $1.9 billion, with $750 million covered by taxpayer funds. Promises of increased tourism and tax revenue were abundant. Yet, after the initial hype, Las Vegas has seen minimal economic spillover, as visitor spending on football doesn’t necessarily translate into long-term benefits for the broader community.
Atlanta’s Mercedes-Benz Stadium, another billion-dollar project, used $700 million in public funds, arguing it would revitalize surrounding neighborhoods. However, the promised community improvements lag behind expectations. Critics argue that funds could have been better allocated to education or infrastructure rather than a stadium that primarily serves out-of-town visitors and private interests.
Next is Los Angeles’s SoFi Stadium, a $5 billion complex funded with both private and public investments. While the facility has hosted major events, the local economic gains remain questionable. Studies indicate that most of the spending associated with the stadium would have occurred anyway, simply redirected from other activities.
St. Louis’s Dome at America’s Center, built in the 1990s, serves as a cautionary tale. The Rams have since moved to Los Angeles, but St. Louis taxpayers are still paying off the bonds for a stadium no longer home to an NFL team. This case exemplifies the long-term financial burden cities face when deals go south.
The most recent example is Nashville, which approved $1.2 billion in public funding for a new stadium. Residents worry about rising property taxes and how the city will manage the financial load if projected revenues fall short. Nevertheless, sports enthusiasts and politicians tout intangible benefits like national exposure and community pride.
So, why do cities keep making these deals? The answer lies in a blend of political pressure, fear of losing teams, and the appeal of prestige. Stadiums promise an immediate, visible legacy for politicians, while the long-term economic damage only becomes clear years later. The cycle continues, even if taxpayers end up paying the price.