Do Publicly Funded Stadiums Pay Off in the Long Run?

By J-Brigham | Posted Wednesday, November 23

Over the winter months, Miller Park will be the focus of an economic study conducted by Major League Baseball. Teams of researchers, including individuals from UW Milwaukee and Marquette, are hoping to find a positive economic impact on surrounding residential areas since its construction in 2001.

Research has already begun on the project, which is being led by UW Milwaukee economics Professor Swarnjit S. Arora. Arora and his counterparts are working with Milwaukee public relations consultant, H. Carl Mueller, who is also an MLB spokesperson for the area.

Mueller explained that the league has an interest in knowing if the building of Miller Park, like all the other major stadium projects in the United States, has zero positive economic impact. The Brookings Institute is one of many organizations that revealed that a taxpayer subsidized, or publicly funded building project for sports stadiums has little or no positive economic impact in host city, or surrounding area. Going back sixty years, the most successful stadium in terms of positive local revenue is Oriole Park. Sadly, the city of Baltimore is eking out a two million dollar per year windfall on an investment of 200 million dollars.

In the case of this effort, Mueller told reporters that team owners, and commissioners would be interested in the findings, because it will provide them with solid statistics for the first time. Major League Baseball wants us to believe that this one study, (conducted by parties most interested in proving their side,) will not be skewed.

In the past, league heads such as Bud Selig and Roger Goodell have had a tough time convincing local council members that a new stadium encourages growth. For the first time in many years, we are seeing push back from voters, and taxpayers. The folks that foot the bill are citing previous findings that clearly state that taxpayer funded venues for millionaire team owners will bring little or no benefit to anyone other than said owners. Since the Braves were lured away from Milwaukee in the 1950’s not one single sports venue has managed to bring positive revenue for the city or region that covers the construction bill. Mueller is expecting the project to be finished by the spring.