Thread by @JoePompliano

The NFL is scamming taxpayers out of hundreds of millions of dollars.

Time for a thread 👇

1) For decades, NFL teams have asked cities to build new stadiums in return for hundreds of millions of dollars in economic impact.

But what if the benefit is overstated and the public is assisting wealthy team owners in funding stadiums that will never realize their true value?

2) First, let's get an idea of how much a new stadium costs.

Top 5 most expensive stadiums in the world:

1. SoFi Stadium - $4.9 billion
2. Allegiant Stadium - $1.9 billion
3. MetLife Stadium - $1.7 billion
4. Mercedes-Benz Stadium - $1.5 billion
5. Yankee Stadium - $1.5 billion

3) State and local governments contribute taxpayer funds to the building of a new stadium for one simple purpose:

The idea that all the visitors coming to spend money at and around sports events will produce enough economic activity to pay for the stadium.

4) The argument for a publicly funded stadium falls apart when you consider two key elements:

- Economic impact is different than tax revenue

- The budget constraints of local residents

5) Economic impact is different than tax revenue:

Super Bowl visitors may spend $3,000 in expenses (tickets, hotel, food, etc.) but in reality that only equates to ~$300 of tax revenue, which might be used to cover public expenses for the event (security, traffic control, etc.).

6) Most consumers have a relatively inflexible leisure budget.

Attending an NFL game typically means that I am spending less elsewhere, whether that is one less family dinner or a night out at the movies.

Local businesses will lose a roughly equal amount of their spending.

7) In reality, there are only two ways that state and local governments can increase tax revenue to fund stadiums:

Increase purchases in activities with higher tax rates (hotels & rental cars) or increase the amount of out-of-town visitors.

8) What do the experts say?

Economists agree the local economic impact of a publicly funded stadium is "weak" and "any economic activity generated while attending a game will largely, if not entirely, be offset by reduced spending on other local leisure activities.”

9) So the question remains - If the privately owned teams earn the stadiums revenue, why are they built with public money?

Because as long as there are more cities that want football teams than there are franchises, state and local governments will continue to pay the bills.

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