A review of the literature shows that stadiums and arenas are insignificant in terms of
creating employment, engendering aggregate increases in local spending, and increasing
per capita income levels. Public subsidies, then, may be better justified with reference to the
nonpecuniary, public good externalities of professional athletic venues. This research
examines whether the public good externalities of Baltimore's Oriole Park and Cleveland's
Jacobs Field justify the use of taxpayer resources to finance such projects. This research …

Stadium and arena projects have become centerpieces of downtown redevelopment efforts.
Between 1990 and 2006, it is estimated that $10 billion will be spent on the construction of
professional athletic venues, of which public subsidies will account for 70 to 80 percent (Noll
and Zimbalist 1997). A review of the literature shows that stadiums and arenas are
insignificant in terms of creating employment, engendering aggregate increases in local
spending, and increasing per capita income levels. Public subsidies, then, may be better …