The
National Football League playoffs begin this weekend, and everyone in America
should watch—not simply because football is America’s most popular sport and a
host of teams have solid chances to win Super Bowl 50. People should watch
because most of them are paying for the league.
Some
may ask, “How? Didn’t the NFL give up its tax-exempt status this year?”
While
the league headquarters did choose not to file as tax exempt in April, this
decision only saves taxpayers about $10
million annually (less than one tenth of 1 percent of the NFL’s revenue for
the 2013-14 season). The NFL was right to call the controversy over the
league’s tax-exempt status a “distraction.”
It was a distraction from the real way the NFL fleeces taxpayers: costly
stadium subsidies.
NFL
owners are professionals at extracting taxpayer money from local fans to fund
generous subsidies for their lavish stadiums. Here are examples from four
teams that are playing this weekend: the Minnesota Vikings, Seattle Seahawks,
Pittsburgh Steelers, and Cincinnati Bengals……….
(Read full text at link below.)
Some—mostly team
owners—argue that these massive subsidies pay for themselves. Economists
disagree. Studies have consistently shown that
public financing for sports stadiums does not pay off. Proponents of these
taxpayer subsidies fail to realize that people will spend their money on other
things besides $86 tickets (average
price in 2014) and $7.42 beers (also the average
price).
The small bump in tourism and economic activity does not
come close to covering the millions in associated costs the public
pays. Promises of neighborhood revitalizations rarely pan out. Subsidizing
a stadium either means that taxes have to increase or public services must be
cut. There is no way to wave a magic wand and avoid this reality.
The average NFL franchise is worth $1.97
billion, higher than the average for any other professional sports league
in the world. Taxpayers should not subsidize large, successful businesses such
as the NFL. Cities and states need to resist the urge to shower NFL owners with
public subsidies and, if necessary, call their beloved teams’ bluffs on moving
to Los Angeles. Regardless of who wins this weekend, taxpayers are the losers.
