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Taxpayers fund billions in new sports stadiums across North America

Government officials and taxpayers in the United States and Canada have spent roughly $33 billion on sports arenas between 1970 and 2020.

Cities keep shelling out taxpayer money for sports stadiums, yet the economics almost never makes sense
File photo Cities keep shelling out taxpayer money for sports stadiums, yet the economics almost never makes sense Photo: Phys.org

High costs for new facilities

The Washington Commanders stadium is expected to cost $4 billion. SoFi Stadium in Los Angeles reached a final price of $6.75 billion when it opened in 2020. These projects often require local funding because leagues rarely cover the full construction expense.

Revenue versus public spending

Major leagues like the NFL reported $14.5 billion in revenue for 2025 while MLB collected an estimated $12.2 billion. Despite these large income figures, franchises usually seek government subsidies rather than paying entirely out of pocket. Most new arenas receive financial support from state or local governments instead of private funds.

Long history of subsidies

Public money has supported sports construction for over five decades across two countries. Officials often promise jobs to secure approval for these expensive building projects. The standard practice involves offering incentives to get state and local officials to approve the spending.

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