Cowboys Stadium as Stimulus Package for the Entire Planet? Just Beautiful.
By While I happily voted for Safeco Field back in the day (1995 I think), I have always believed that public subsidies for sports stadia is a dodgy pursuit at best. The common argument forwarded by proponents, that the stadium itself serves as an economic motor for the neighborhood, city, region, and even state, has rarely found support in the literature.
Then I read this. Somewhat admirably, the public contribution from the city of Arlington is a mere $325 million out of an entire budget of a mind-boggling $1.12 billion. But that’s still $325 million at a time when neighborhoods, cities, regions, even entire states are enjoying a bit of a budgetary disaster. The best line is from Jerry Jones, owner of “America’s Team”, in defense of the municipal subsidy:
“Jones says Cowboys Stadium will be its own stimulus package that will help “the country and this world” dig out of the recession.”
The entire world! Imagine what the 2012 London Olympics can do, dig the entire solar system out of the recession? Excellent.
I recognize that public subsidies of sports stadia constitute a soft target, and it’s not just sports that are subsidized. When Boeing elected to assemble the 787 (out of large chunks made elsewhere) in Everett, Washington, both the city of Everett and the state of Washington afforded Boeing large subsidies, because Boeing may have, what, outsourced the 787’s manufacturing to Wichita? Mexico? India? This is a direct function of a rich and nuanced federal system. So long as jurisdictions are allowed to vary their tax rates and exceptions to the same, venue shopping such as this is a rational response on the part of any business, sports included — and explains my vote for Safeco back in 1995. And note, compared to unitary systems, I tend to support federal systems.
This doesn’t mean that it doesn’t suck, however, and here I have a strong preference for the British model, where the club (usually) owns the stadium.
