Regime theory provides a framework for exploring changes in development patterns and internal dynamics of growth coalitions. Academic debates on sport and urban development have focused on large American and European markets, where such venues are increasingly led by urban regimes that aim to leverage public goals through private investment. Based on a detailed qualitative analysis of four projects in three major Israeli cities, this work examines a different typology of sport venue development – ‘public regime’, which operates in a small market context. The Israeli public regime neither allows the private sector to assume central roles in the design, development and operation of venues nor does it stimulate real estate development anchored by the venue. The assumption that professional sports is not a viable business in small markets is used to justify the public monopoly that regards the venues as public amenities, legitimizing the lack of strategic and business plans, producing benefits for the local political elite but doing little to stabilize professional sport and secure economic returns for the public. The more affluent city of Tel Aviv demonstrates a breakout from a pure public regime, where public control is retained but more business-oriented considerations are incorporated.