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Today, Congressmen Glenn Grothman (R-WI) and Don Beyer (D-VA) introduced the No Tax Subsidies for Stadiums Act, a bill that will end taxpayer subsidies for the construction of professional sports stadiums. A companion bill has been introduced in the Senate by Senators James Lankford (R-OK) and Cory Booker (D-NJ).

“Congress is sometimes criticized for providing special tax breaks for wealthy individuals and when it comes to sports stadiums, it is true. We should no longer allow provisions that were intended to help local communities build infrastructure, like roads, be abused to help subsidize multi-billion dollar sports franchises and owners. Hardworking Americans should not be forced to finance billion-dollar sports stadiums,” said Grothman. “Sports infrastructure brings value to communities. But, just like most government programs, we must be intellectually honest and question the need for tax dollars to subsidize projects. If a billion-dollar stadium is worth the investment, the builder should seek those investments in the free market instead of demanding discounted rates courtesy of taxpayers.

“American taxpayers should not be forced to fund the building of sports stadiums for super-rich sports team owners,” said Beyer. “Billionaire owners who need cash can borrow from the market like any other business. Arguments that stadiums boost job creation have been repeatedly discredited. In a time when there is a debate over whether the country can ‘afford’ investments in health care, childcare, education, or fighting climate change, it is ridiculous to even contemplate such a radical misuse of publicly subsidized bonds.”

Background

Under current law, professional sports teams are allowed to finance stadium construction using tax-exempt municipal bonds, a provision originally intended to help local governments fund essential public infrastructure projects such as schools, hospitals, and roads. This loophole has enabled wealthy sports franchises to benefit from taxpayer dollars, often with little measurable economic return to the surrounding communities.

Since 2000, 43 professional sports stadiums have been financed with tax-exempt municipal bonds, costing American taxpayers an estimated $4.3 billion in lost federal revenue.