Entitling Professional Sports Through Taxpayer Subsidies

Samuel Staley at the Reason Foundation’s Out of Control Policy blog writes about the cronyism occurring when professional sports teams are subsidized by taxpayers, and gives several examples:

Professional sports continues to be crony capitalism at its worst, using its oligopoly status to extract rents from taxpayers through elected officials. The reality is that precious little evidence exists suggesting that professional sports teams boost economic growth for cities, let alone neghborhoods, and the so-called benefits reflect the low bar used by local officials to claim success.

One thought on “Entitling Professional Sports Through Taxpayer Subsidies”

  1. Jack Kemery says:

    I believe one thing that makes this possible is a controlled amount of teams and control of ownership. These type of things limit the amount of teams. I could (if I had the money) not go to a sports league and say he I want a brand new team. I would have to get an existing one or petition for expansion. Businesses of course have the right to regulate how they will expand. The problem however with this model is with demand for teams greater than supply along with the knowledge losing a team means you lose it forever creates an unnatural atmosphere for acquiring one, which then leads to cities building arenas and so on. This is where the problem exists. It is my belief that since sports leagues do this they should no longer be able to regulate the amount of teams they have. Sound ridiculous. Look at how most soccer leagues in the world are run. They are run the way I just mentioned and franchise moves are unheard of. Of course without them teams can no longer hold leagues hostage to building new arenas and stadiums

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