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Stossel: Super Bowl of Welfare

Sports stadiums get billions of dollars in taxpayer subsidies.

Mercedes-Benz Stadium is home to the Atlanta Falcons and the site of this year's Super Bowl. Costing $1.5 billion, it's one of the most expensive stadiums in America.

The owner of Atlanta's football team, billionaire Arthur Blank, persuaded Atlanta officials to force taxpayers to pay for more than $700 million in subsidies for his stadium.

John Stossel says he understands why politicians subsidize stadiums. "They like going to games, and like telling voters, 'I brought a team to our town!'" says Stossel.

He also understands why billionaires take the money, "if politicians are giving money away, Blank's partners would consider him irresponsible not to take it."

And when it comes to already-rich people getting poorer people to fund their stadiums, Atlanta is not unusual. The Oakland Raiders got $750 million of taxpayer money to move the Raiders to Las Vegas.

"In the last two decades…taxpayers across the country have spent nearly $7 billion on [NFL] stadiums," according to a Huffington Post article.

In fact "12 teams … actually turned a profit on stadium subsidies alone," according to a Fox News report.

Politicians claim their subsidies are "an investment." They argue the economic benefits a stadium will bring a city outweigh the cost. Las Vegas Mayor Carolyn Goodman said, "It really is a benefit to us that really could spill over into something."

Stossel says this "spillover is bunk." Numerous economic studies have shown that stadiums are a bad investment for taxpayers.

One by George Mason University concludes, "Despite the many millions of dollars spent on professional sports, little or none of that money makes its way back to the taxpayers who subsidize professional sports teams." In fact "… sports teams may actually hurt economic growth."

Economist J.C. Bradbury points out that while money spent at football games is the "seen benefit, the unseen cost is that those people would otherwise be spending their money elsewhere in the local communities. At the local bar there's one less bartender. There was one less waitress hired at another restaurant. A movie theater that had one less theater full."

Stossel reminds everyone, "When politicians brag about their stadium and the many economic benefits, let's also remember all the jobs they destroyed and taxpayer money they squandered."

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The views expressed in this video are solely those of John Stossel; his independent production company, Stossel Productions; and the people he interviews. The claims and opinions set forth in the video and accompanying text are not necessarily those of Reason.

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  • Mongo||

    The Minnesoda rubes got taken by the city slickers in last years' Super Bowl here.

    Snoop Dogg was sold as being at an appearance but didn't bother to show up.

    Cardi B was 45 minutes late, badly lip-synched only one song and then split back to the limo without even taking off her winter clothing during the one-song gig.

    It was bitterly cold during the SB too.

  • BearOdinson||

    Maybe I am missing something,
    but WTF are you talking about?

  • Teddy Pump||

    Stossel is a stutterer?.....WOW!!! He never even comes close to stuttering!!!...Now, I respect him even more!

  • PaulTheBeav||

    The government paying for stadiums isn't any different than the government paying for parks or libraries.

  • Ben1234||

    Except rich people don't get the money made from parks and libraries.

  • Barrie||

    Most parks or libraries have free admission. Personally I don't think the government should subsidize parks or libraries either.

  • Chili Dogg||

    You are aware that these stadiums are built for private companies, generally wealthy private companies that have good political connections whom they donate to? That makes them different paying for parks or libraries.

    BTW, America's early libraries were private and voluntary. Andrew Carnegie created scores of them..

  • ||

    Start working at home with Google. It's the most-financially rewarding I've ever done. On tuesday I got a gorgeous BMW after having earned $8699 this last month. I actually started five monthsago and practically Text. profitvid.com

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