Key facts
- Lawmakers argue that tax-exempt municipal bonds, intended for public infrastructure, are being abused to subsidize sports franchises.
- Since 2000, 43 professional sports stadiums have been financed with tax-exempt municipal bonds, costing taxpayers an estimated $4.3 billion in lost federal revenue.
- Economists consistently find that the economic benefits of stadiums to host communities do not justify the massive public outlays.
US Representatives Glenn Grothman and Don Beyer have introduced bipartisan legislation, the No Tax Subsidies for Stadiums Act, to end the use of taxpayer funds for professional sports stadium construction. The bill targets the use of tax-exempt municipal bonds, a provision originally intended for essential public infrastructure like schools and roads, which critics argue is being exploited by wealthy sports franchises. Since 2000, 43 stadiums have been financed this way, costing an estimated $4.3 billion in lost federal revenue. Economists have long argued that the economic benefits to communities do not justify these massive public outlays, with stadiums primarily reallocating existing spending rather than stimulating new commerce.