Why taxpayer-funded sports stadiums don’t pay off

Americans are crazy about sports. But whether that passion requires taxpayers to subsidize new facilities every time leagues and franchises ask for them needs rigorous scrutiny. A lot of money is at stake. For 2025, the NFL reported some $14.5 billion in revenue, while the MLB collected an estimated $12.2 billion and the NBA earned almost $12 billion. Given these numbers, it’s no surprise that leagues and franchises have sought to build bigger, fancier facilities. But such projects come with hefty price tags. The stadium planned to house the Washington Commanders, for example, is expected to cost $4 billion, while SoFi Stadium in Los Angeles cost $6.75 billion, making it the most expensive NFL stadium in history when it was completed in 2020. At the same time, it’s rare that the leagues or franchises that rake in their teams’ winnings cover the entire construction cost of new facilities. In fact, most new sports stadiums receive funding from state or local governments—meaning taxpayers often foot much of the bill. From 1970 to 2020, taxpayers across the U.S. and Canada paid some $33 billion toward the construction of sports arenas, roughly 73% of the total cost. The standard appro…