Confronting the Problems of Professional Sports: A Public Policy Response to Franchise Relocation and Stadium Subsidization

  • Taylor F Brinkman Peabody College of Vanderbilt University

Abstract

During the past decade, forty-six professional sports venues were constructed in the United States, while only 16 expansion teams were created by the major sports leagues. Nearly two thirds of these newly built stadiums and arenas were funded with public tax revenues, despite substantial evidence showing no positive economic impact of new sports stadium construction on local communities. In reviewing the economic literature, this article investigates the role of professional sports organizations in the construction and public subsidization of new sports venues. Franchise relocation and public stadium subsidization is a direct result of the monopoly power of professional sports leagues, whose franchise owners extract large subsidies from their host communities by threatening to relocate to viable alternative locations. After explaining how the most common methods of stadium subsidization project a disproportionate allocation of the benefits and costs of hosting a professional team to local community interests, this article outlines several considerations for local policymakers who seek to reinvigorate public discussion of equity concerns in professional sports finance.

Author Biography

Taylor F Brinkman, Peabody College of Vanderbilt University
Taylor F. Brinkman is a third-year student majoring in Human & Organizational Development and Economics in the Peabody College of Education and Human Development. A native of Flower Mound, Texas, he is a member of the Peabody Scholars Program and is consistently honored on the Dean’s List. During the next academic year, Brinkman will intern in the media relations department of the Nashville Predators professional hockey franchise. He hopes to attend law school and enter the professional sports field upon graduation, with a lifetime dream of serving as general manager of his favorite major league team, the Texas Rangers.
Published
05-10-2005
How to Cite
BRINKMAN, Taylor F. Confronting the Problems of Professional Sports: A Public Policy Response to Franchise Relocation and Stadium Subsidization. Vanderbilt Undergraduate Research Journal, [S.l.], v. 1, may 2005. ISSN 1555-788X. Available at: <http://vurj.vanderbilt.edu/index.php/vurj/article/view/2723>. Date accessed: 22 oct. 2017. doi: https://doi.org/10.15695/vurj.v1i0.2723.
Section
Humanities and Social Sciences

Keywords

Professional Sports Stadium Finance