Sports Finance and Management

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Chapter 5

Stadium Financing

Introduction

While the previous chapter briey discussed private versus public funding of facili-

ties, this chapter gives much more detail regarding the nancing of sport facilities.

What separates nancing in the sports industry from that of other industries is the

level of investment in facilities made by governments. Since fans do not want to

see their teams move to other cities that do not have a major league franchise, and

leagues limit the supply of franchises, local governments are often willing, or forced

to subsidize the needed arena, ballpark or stadium. In recent years, state and local

governments have ...