Over the last 20 years, billions of dollars have been invested into multiple sporting stadiums across America however, these stadiums have seen minimum tax revenue coming out from these stadiums.
Tax revenues coming out of stadiums are not nearly as sufficient as they should be to cover the financial debt and contribution to the city. Billions of dollars have been spent on sport stadiums but aren’t making nearly as much to be payed off. Consumer sovereignty is not nearly as played in this circumstance as it should be. there should be less stadiums due to the minimum impact it is making on the economy and the money should be used rather on things which the population deem more worthy.
Economists say that sporting teams don’t have a big impact on economy because people have limited budget for entertainment purposes. Due to this watching and going to sporting teams games aren’t always number one priority, so the populations money tends to go to things more important and of value to them such as food, bills, businesses etc. Consumers opportunity cost in the situation are having food and shelter rather then entertainment.
Micheal Leeds, a professor from Temple University conducted a study on major sporting teams in Chicago and came to the conclusion that if you were to take out all of the sporting teams in Chicago that they would only account to a fraction or less then 1% of the city’s economy.
“Instances of sporting teams leaving town also don’t seem to have a strong impact on the stability of a city’s economy” stated Matheson. The situation of the Lakers leaving Inglewood showed that the sporting teams contribution had little impact on the city’s economy.
As a part of the broad audience, I see this as a problem, I see that we are wasting money on sports stadiums that we do not need and are making little to not tax revenue. Stated before, the sports stadiums in several city’s are making minimum impact on the economy so why don’t we seek new projects which will boost our economy and have a positive effect instead of having a city and or country being in debt by failure projects.
Lack of audience at a sports event
Year 11 MHS Economics 2020 
New stadiums or sporting facilities usually don’t get built that quite often, but sometimes when the government or clubs overspend, it can cause substancial enocomic issues. For example the 2014 world cup in brazil.
Very informative and good article to read, Prenoj.
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