What's the story?

• The Nashville Metro Council recently approved a $2.1 billion budget for the construction of a new stadium for the Tennessee Titans. The 60,000-seat, 1.7 million-square-foot facility will be built across 15 acres of Metro-owned land near the interstate. An additional 20 acres surrounding the arena will be turned into what has been dubbed "Stadium Village."
• The decision followed a contentious public debate in Nashville about the value of investing public funds in such large-scale projects, reflective of a broader national discussion on the economic impacts of publicly financed sports stadiums.
• Recent years have witnessed several major cities unveiling plans for new stadiums or renovations to existing facilities. The Los Angeles Rams and Chargers moved into the $5 billion SoFi Stadium in 2020, while the same year saw the Las Vegas Raiders move into the $1.9 billion Allegiant Stadium.
• Also in Vegas, voters are currently split on whether to fund a new stadium in the hopes of luring the Oakland A's baseball team to the area. 

What does the data say?

"The Economics of Stadium Subsidies: A Policy Retrospective"

• This newly published academic paper on sports stadium economics has again found that public financing of professional sports arenas fails to deliver the benefits often pledged by political figures.

   

“The common justification that stadium-related spending results in increased economic activity is not well founded, because most fan spending derives from existing area residents who reallocate their spending from other local leisure consumption options. Thus, spending at sports events crowds out other local spending and does not represent net new spending to the area.”

• Later, the article - written by Kennesaw State University economist J.C. Bradbury along with Dennis Coates of the University of Maryland-Baltimore County and Brad Humphreys from West Virginia University - is even more blunt:

“The empirical evidence is unambiguous: stadiums do not confer large positive economic or social benefits on host communities."

What are people saying?

Nashville

Supporters

“For more than 25 years, Nashville, Tennessee, has been the Titans’ home, and with the approval of the new stadium agreement, we are grateful to know the Titans will be a part of this great city and state for decades to come,” said Titans controlling owner Amy Adams Strunk, in a press release.

“I remember the early days of our time here feeling all the promise and opportunity ahead, and I feel that same enthusiasm and excitement again today. We are thankful for the support of Mayor Cooper, Metro Council, the Sports Authority, the State of Tennessee, and most importantly, the people of Nashville and Tennessee as we all embark on this new chapter together.”

Nashville Mayor John Cooper also expressed his excitement over the deal:

"This is a great day for our city. The new stadium will not only provide an incredible home for our Titans but also be a catalyst for economic growth in the surrounding area...We are excited to see this project come to fruition and are confident it will have a positive impact on our city's future."

Opponents

During a contentious five-hour public hearing prior to the vote, 70% of speakers opposed the deal.

"To me this is simply another instance of Nashville prioritizing tourism and entertainment over needed funding toward infrastructure, schools and public transit," said East Nashville resident Karissa Hoffman.

And council member Angie Henderson - who voted against the deal and abstained from voting on the resolution - said she resented that the Nashville Needs Impact Fund has been "used as some tool in the community for people to feel that they are somehow a part of or beneficiaries of this stadium when it's just token gestures."

"We should be ashamed of ourselves," Henderson added.

Las Vegas

• As the Oakland A’s contemplate moving their Major League Baseball franchise to Las Vegas, a recent poll by The Nevada Independent and Noble Predictive Insights reveals that registered voters are divided on utilizing taxpayer funds to help entice the team to the desert oasis.
• The poll emerged amidst reports that the team has pinpointed a location for a potential $1.5 billion stadium complex in Vegas.
• However, the team is still seeking approval from state lawmakers for a $500 million tax package, which would involve tax credits and establishing a special taxation district to aid in stadium construction.

Poll Results

Overall

• 41 percent of participants expressed their support for the assistance
• 38 percent opposed it
• 14 percent neither supported nor opposed the aid
• 7 percent stated they had no opinion on the matter

By Region

Voters closer to the stadium tended to support its construction:

• 44 percent support in Clark County
• 38 percent in rural Nevada
• 29 percent in Washoe County

The economic impact of publicly-funded stadiums remains a contested issue, with studies showing mixed results. Some cities have reported a significant boost in economic activity, while others have seen less dramatic returns on their investments. 

Do you want your tax dollars going to stadiums? Tell your reps now.