Answer: The stadiums were built by issuing bonds (IOUs) that were bought by investors
- These stadiums were able to issue these bonds at a lower interest rate due to a government subsidy. Do you think it is fair for stadiums to receive a government benefit? Why or why not?
- Do you think bonds that are issued to pay for stadiums would be popular with sports fans?
Behind the numbers (Brookings):
In a new paper from Economic Studies at Brookings, “Tax-Exempt Municipal Bonds and the Financing of Professional Sports Stadiums,” they take a comprehensive look at the federal side of stadium subsidies. They find that since 2000 alone, federal taxpayers have footed $3.2 billion toward private sports stadiums through subsidies in the form of tax-exempt municipal bonds.
Wondering how former athletes are doing managing their money? Check out this NGPF podcast with former NY Giant football player Dwayne Hendricks.
About the Author
Tim’s saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.