Taxpayers in the state of New York will be
paying
most of the cost of a new stadium for the Buffalo Bills. This is despite the fact that the Buffalo Bills are a for-profit business owned by billionaires.
New York Gov. Kathy Hochul, like other governors before her, is trying to make an economic argument for subsidizing billionaires’ stadiums. Those arguments are totally undermined by all available evidence and almost all economists.
In a recent poll, 83% of economists
agreed
that “providing state and local subsidies to build stadiums for professional sports teams is likely to cost the relevant taxpayers more than any local economic benefits that are generated.”
Basically, all economists agree that stadium subsidies, in general, do not “pay for themselves” or add to the overall economy of a city or state. That’s because they largely shift economic activity from one part of town to another, and they displace other uses of the relevant land, materials, labor, et cetera.
That leaves a noneconomic argument. “Stadiums and sports franchises can be a source of civic pride” is one
claim
in that vein.
As families, we make decisions all the time that don’t improve our economic situation. Governments do the same. Spending money on weapons systems and war makes us poorer, but it makes us safer. Housing the homeless and feeding the hungry doesn’t need to make us wealthier in order to be worthwhile.
So what if we ignore the bogus arguments from the governors and just consider whether spending money is worth it on moral and civic terms? After all, Buffalo doesn’t want to lose the Bills.
“The Buffalo Bills are ingrained in the heart and soul of every Western New Yorker,” Erie County Executive Mark Poloncarz said in a
press release Monday.
“It was essential that we entered into an agreement that ensured the team stayed in Buffalo.”
But already you may see the problem here. Billionaire owners Kim and Terry Pegula are
threatening
the city. “Right now, the city of Buffalo and the state are going to have to decide if they want a team,” the Pegulas’ executive said when demanding hundreds of millions in subsidies.
Is this how the people of New York and Erie County express their values? If you’re wealthy enough, and you have enough sway over the culture and economy of a locality, you get to demand favors that no normal person would get? It’s like a bizarro-world income tax: The richer you are, the more state money you get.
If you are justifying this stadium subsidy on noneconomic grounds, saying this is about culture or values, then you are saying that your values include extortion by the rich and powerful.
