Taxpayers Protection Alliance September Sacking Taxpayers:

Transcription

1 Taxpayers Protection Alliance September 2015 Sacking Taxpayers: How NFL Stadium Subsidies Waste Money and Fall Short on Their Promises of Economic Development

2 Taxpayers Protection Alliance About the Organization The Taxpayers Protection Alliance (TPA) is a non-profit non-partisan organization dedicated to educating the public through the research, analysis and dissemination of information on the government s effects on the economy. TPA, through its network of taxpayers will hold politicians accountable for the effects of their policies on the size, scope, efficiency and activity of government and offer real solutions to runaway deficits and debt. Through blogs, commentaries, and special spending alerts, TPA will publish timely exposés of government waste, fraud, and abuse. Recognizing the importance of reaching people through traditional and new media, TPA will utilize use blogs, Twitter, and Facebook to reach out to taxpayers and government officials. Ultimately recognizing that the greatest power of change rests with the millions of Americans across the country who are ready for a smaller more accountable government, TPA will be a catalyst for connecting taxpayers to their elected and non-elected officials. Where We re Located 1401 K Street, NW., Suite 502 Washington, DC (202) Connect With Us Online Contents 1 Introduction Citations Arizona Cardinals Atlanta Falcons Baltimore Ravens Buffalo Bills Carolina Panthers Chicago Bears Cincinnati Bengals Cleveland Browns Dallas Cowboys Denver Broncos Detroit Lions Green Bay Packers Houston Texans Indianapolis Colts Jacksonville Jaguars Kansas City Chiefs Miami Dolphins Minnesota Vikings New England Patriots New Orleans Saints New York Giants & New York Jets Oakland Raiders Philadelphia Eagles Pittsburgh Steelers San Diego Chargers San Francisco 49ers Seattle Seahawks St. Louis Rams Tampa Bay Buccaneers Tennessee Titans Washington Redskins

3 When the National Football League (NFL) season kicks off Thursday, the New England Patriots and Pittsburgh Steelers will battle in a stadium built using $72 million of taxpayers hard-earned money. Unfortunately, that s nothing new. Since 1995, a staggering 29 of the 31 stadiums that house NFL teams received public subsidies for construction, renovation or both. Between 1995 and today, taxpayers have been forced to spend nearly $7 billion subsidizing NFL stadium construction and renovation projects. The subsidies amount to little more than crass corporate welfare. After all, the handouts for stadium construction and renovation projects amount to money being taken from struggling taxpayers by politicians, then funneled to the billionaire owners of the teams in order to reduce their overhead cost and increase their profits. Introduction While government leaders and team officials argue that publicly subsidized stadiums are justified because the projects encourage economic growth by generating wealth and creating jobs. In an effort to determine the economic impact of taxpayer-financed NFL stadiums on the people who pay the taxes that fund the construction of most NFL stadiums, the Taxpayers Protection Alliance compared median household income and poverty rates in counties with NFL stadiums before and after tax dollars were used to subsidize the stadiums. 1 Data revealed that median income decreased and poverty rose substantially in counties with publicly funded NFL stadiums. Taxpayers funded more than half the construction cost of 12 stadiums from During that time, national median household income rose 0.3 percent across the United States, adjusted for inflation. In the dozen counties in which an NFL stadium was built using more than 50 percent public funds, however, median household income plummeted 5.7 percent during the same time. Twenty-six counties in America are home to an NFL stadium that received tax dollars between 1995 and In an astonishing 17 of those 26 counties, the median household income actually decreased in constant dollars after the stadium received public money for construction or renovation. Taxpayer-financed NFL stadiums didn t just appear to decrease median income, they also apparently contributed to increasing the number of people living in poverty. In the 12 counties in which taxpayers funded more than half the cost of a new stadium between 1995 and 2013, the percentage of the total population living in poverty rose from 16 percent to 18.7 percent. That poverty rate increase is a 26.3 percent greater increase in poverty over other counties that are home to NFL stadiums, and an increase of more than 231 percent the national average, which rose from 13.8 to 14.5 percent during that time. Not only do taxpayer-subsidized stadiums harm the local economy and fail to benefit the hard-working Americans who pay for them, they also do not lead to improved success on the field. Sacking Taxpayers: How NFL Stadium Subsidies Waste Money & Fall Short on Their Promises of Economic Development -1-

4 Over the past 20 years, only seven Super Bowls have been won by teams whose home stadiums were built primarily with taxpayers money (Seattle Seahawks; Pittsburgh Steelers, twice; St. Louis Rams; Baltimore Ravens; and Tampa Bay Buccaneers). Six of the last 14 Super Bowl Champions played in one of the eight least taxpayer-reliant stadiums (New York Giant, twice; New England Patriots, four times). Further, local officials often argue that heavy taxpayer financing is necessary to build a stadium capable of hosting a Super Bowl. Even that claim is bogus. Just five Super Bowls have been hosted by stadiums built in the last 25 years that obtained more than half of the construction costs from taxpayers. Those Super Bowls were held in Houston, Indianapolis, Tampa and twice in Arizona. Introduction What follows is a team-by-team overview of how taxpayer support impacted the team, taxpayers and the local economy, as well as a comparison of the rate of people living in poverty and the median household income in the county in which each stadium is located for both 1995 and 2013, and an accounting of the cost of each team s stadium to taxpayers. Sacking Taxpayers: How NFL Stadium Subsidies Waste Money & Fall Short on Their Promises of Economic Development -2-

5 Arizona Cardinals The Arizona Cardinals hold the dubious distinction of being the worst team in NFL history. Despite being a charter member of the NFL in 1920, the Cardinals have managed only two titles, and not one has been received since Not only are the Cardinals currently mired in the longest championship drought in NFL history, the team also has the most losses in league history. Only the Buccaneers have a worse winning percentage. 2 In 2006, team officials decided that if the Cardinals couldn t be good at football, they d focus on being good at stadiums and good at sticking it to taxpayers. The result is the $455 million University of Phoenix Stadium, which pecked away at $308 million in public funds. In order to pay for the stadium, Phoenix-area tourists were sacked with almost $300 million in hotel taxes and rental car fees. Despite hosting two Super Bowls and many other major events, the stadium has failed to generate the anticipated economic benefit. The median household income in Maricopa County, where the stadium is located, has fallen nearly 10 percent since the stadium opened, and the county s poverty rate has climbed sharply. Atlanta Falcons Poverty Rate before Stadium: 13.8% Poverty Rate after Stadium: 17.6% Median Income before New Stadium: $57,502 Median Income after New Stadium: $52,066 Cost to Taxpayers: $308 million The Falcons owner, Arthur Blank, deserved a gold medal for wasting tax dollars. The Home Depot cofounder has decided to raze the team s current home, the Georgia Dome, despite forcing taxpayers to spend more than $30 million refurbishing the stadium just 9 years ago. The Georgia Dome, which was a centerpiece of the 1996 Summer Olympics, was completed in 1992 at a cost of $214 million to state taxpayers. Despite its relative youth and good condition, as well as its recent renovation, the stadium will be demolished in 2017 to make way for another taxpayer-subsidized dome. Mercedes-Benz Stadium, the Georgia Dome s replacement, is slated to receive $200 million in handouts funded by new lodging taxes on visitors to the city. 3 Poverty Rate before Stadium Renovation: 20.9% Poverty Rate after Stadium Renovation: 18.2% Median Income before Stadium Renovation: $54,976 Median Income after Stadium Renovation: $55,474 Cost to Taxpayers: $30.3 million Sacking Taxpayers: How NFL Stadium Subsidies Waste Money & Fall Short on Their Promises of Economic Development -3-

6 Baltimore Ravens Charm City proved less than charming to taxpayers when the old Cleveland Browns franchise relocated to Baltimore and became the Ravens. As part of the relocation, taxpayers were forced to pay more than 90 percent of the cost of a $226 million stadium. Baltimore resident told the team nevermore when they were asked to underwrite part of a $35 million renovation project in Ravens officials took the hint and the team paid for the stadium improvements itself. Buffalo Bills Poverty Rate before Stadium: 24% Poverty Rate after Stadium: 22.7% Median Income before New Stadium: $39,655 Median Income after New Stadium: $41,988 Cost to Taxpayers: $203.6 million How do you get longsuffering NFL fans who live in an economically stagnant area of the country to agree to pay nearly $100 million to renovate a stadium? Threaten to move the team. After the Bills played footsie with Toronto, Erie County and New York state officials became jealous and bought the team a huge gift at taxpayers expense underwriting most of the cost of a $130 million overhaul of Ralph Wilson Stadium. Poverty Rate before Stadium Renovation: 13.7% Poverty Rate after Stadium Renovation: Stadium renovations were not complete when most recent poverty information was published. Median Income before Stadium Renovation: $51,338 Median Income after Stadium Renovation: Stadium renovations were not complete when most recent median income information was published. Cost to Taxpayers: $94.5 million Carolina Panthers The Charlotte City Council has taken a bite out of taxpayers wallets in an attempt to stay in the good graces of Panthers owners and fans. City officials agreed to give $162.5 million towards a $236 million remodeling project at Bank of America Stadium that is currently in the works. The makeover will force taxpayers who are trying to make ends meet to pay for niceties such as new video boards and faster escalators at the stadium so the team s owners don t have to. 4 Of course, many of the Charlotte residents who will pay for the stadium upgrades will never have the opportunity or the discretionary income to go to a Panthers game. The result is a Robin Hood-inreverse scenario in which the poor are being robbed to subsidize the entertainment of people who can afford season tickets that begin at $430, plus a $1,000 seat license, and go as high as $11,800 a year. Sacking Taxpayers: How NFL Stadium Subsidies Waste Money & Fall Short on Their Promises of Economic Development -4-

7 Chicago Bears Poverty Rate before Stadium Renovation: 10.9% Median Income after Stadium Renovation: Renovations were not complete when most recent poverty information was published. Median Income before Stadium Renovation: $63,732 Median Income after Stadium Renovation: Renovations were not complete when most recent median income information was published. Cost to Taxpayers: $162.5 million At 90 years young, Soldier Field, home of Da Bears, is the oldest stadium in professional football. It also holds the distinction as the most expensive stadium renovation project in American history. The Bears effort to modernize the stadium without tearing it down led to a $587 million facelift on a stadium that was originally constructed for $13 million. At the time the project was completed in 2003, the Soldier Field renovation was the most expensive NFL stadium ever not that Bears owners minded. They managed to push off 66 percent of the cost of the massive overhaul on to taxpayers, primarily by gouging Windy City visitors with an oppressive hotel/motel tax. Cincinnati Bengals Poverty Rate before Stadium Renovation: 14.7% Poverty Rate after Stadium Renovation: 17.8% Median Income before Stadium Renovation: $57,871 Median Income after Stadium Renovation: $53,795 Cost to Taxpayers: $387 million If there were a Hall of Fame for worst stadium deals for taxpayers, Paul Brown Stadium in Cincinnati would be voted in on the first ballot. The project has been called worst stadium financing deal ever and the most lopsided of any NFL public stadium financing deal and that s being kind. 5 Using a 0.5 percent county sales tax hike, a handout from the state of Ohio and hazy accounting to finance 94 percent or almost $425 million of the Bengals stadium wrecked Hamilton County. The stadium devoured more than 16 percent of the county s general fund budget, created a budget shortfall and caused a property tax hike. 6 While a study commissioned by county officials promised $300 million in economic benefits as a result of the facility, the stadium actually produced almost no benefit to the surrounding area s economy, according to Business Insider magazine. The stadium even harmed job growth in Hamilton County, causing poverty rates in the county to increase by 60 percent in the county after the stadium was built. Sacking Taxpayers: How NFL Stadium Subsidies Waste Money & Fall Short on Their Promises of Economic Development -5-

8 Poverty Rate before Stadium: 11.7% Poverty Rate after Stadium: 18.7% Median Income before Stadium: $52,055 Median Income after Stadium: $47,123 Cost to Taxpayers: $424.8 million Cleveland Browns When governments increase taxes to fund non-essential items almost always backfires. That was certainly the case in Cleveland where city officials passed a set of funding strategies to underwrite the $200 million in public funding going towards the Browns new $271 million stadium. The series of grants, bonds and other payments the city of Cleveland gave to the Browns in order to fund the stadium tied the city s hands when it came to funding more necessary services. One of the results was a dramatic increase in people living in poverty in the Cleveland area. Another was a substantial fall in median income after the stadium was built. Dallas Cowboys Poverty Rate before Stadium: 14.3% Poverty Rate after Stadium: 19.2% Median Income before Stadium: $51,634 Median Income after Stadium: $43,653 Cost to Taxpayers: $200 million Dallas Cowboys owner Jerry Jones has long been known as the NFL s most powerful eccentric. When he built the massive new AT&T Stadium in 2009, he became the NFL s biggest snake oil salesman in the eyes of some taxpayers. Jones claimed the facility would require minimal tax dollars to build. However, when the actual costs of building the new Cowboys stadium exceeded initial estimates by more than $500 million, Jones convinced lawmakers to slap a bevy of new taxes on Arlington, Texas, residents, including a citywide half-cent sales tax increase to fund most of the cost overruns. As a result, Jones nearly doubled the cost of the stadium without paying a single extra dime. Poverty Rate before New Stadium: 12.3% Poverty Rate after New Stadium: 15.2% Median Income before Stadium: $62,735 Median Income after Stadium: $56,906 Cost to Taxpayers: $444 million Sacking Taxpayers: How NFL Stadium Subsidies Waste Money & Fall Short on Their Promises of Economic Development -6-

9 Denver Broncos It s hard to believe the county government officials who approved of nearly $300 million in public funding for the Sports Authority Field at Mile High passed the plan more than a decade before marijuana was legalized in Denver. No clear-thinking person would agree to such a burdensome scheme for taxpayers. The plan, which included a six-county sales tax increase, funded 72 percent of the cost of the stadium. The average Denver-area family ended up with $1,100 in new taxes as a result of the Broncos stadium. Poverty Rate before New Stadium: 17% Poverty Rate after New Stadium: 18.7% Median Income before Stadium: $48,874 Median Income after Stadium: $51,156 Cost to Taxpayers: $289 million Detroit Lions Money can buy stadiums, but it can t buy championships. The taxpayers of Detroit learned that fact the hard way. The Detroit Lions, who have lost 100 games more than they ve won during the team s 85-year-history, last won an NFL championship in They are the only NFC team never to appear in a Super Bowl. No city in America was less equipped to spend $110 million to subsidize a sports stadium than Detroit when Ford Field opened in Still, Lions fans hoped the new digs would bring a new era of success on the gridiron. Instead, the facility just exacerbated Detroit s dire financial situation. Motown s poverty rate spiked by 22 percent, while the city s median income fell 18 percent in the decade after the stadium opened. Rather than inspiring the Lions to finally win a Super Bowl, Ford Field played a role in causing the Motor City to become the largest city in American history to declare bankruptcy. Poverty Rate before New Stadium: 20.6% Poverty Rate after New Stadium: 25.1% Median Income before Stadium: $49,544 Median Income after Stadium: $40,485 Cost to Taxpayers: $110 million Green Bay Packers Lambeau Field is one of the most revered stadiums in sports. So it s no wonder that, when the 58-yearold stadium began showing some wear, the decision was made to give the facility a facelift, rather than tear it down and start from scratch. Unfortunately for taxpayers, building a new stadium would have likely been cheaper. Sacking Taxpayers: How NFL Stadium Subsidies Waste Money & Fall Short on Their Promises of Economic Development -7-

10 The public picked up $169.1 million of the $295.2 million tab to overhaul Lambeau Field. That s a lot of cheddar, even by Cheesehead standards. Regrettably, the renovations to the old stadium appeared to play a role in tanking the area s economy. The half-percent sales tax imposed by Brown County in order to fund the Lambeau upgrades contributed to a dramatic increase in poverty and decrease in median income. The number of people living in poverty in Green Bay has nearly doubled since taxpayers were burdened with the stadium rehab costs. The median income in Brown County plummeted from over $65,000 in 1995 to less than $52,000 in Houston Texans Poverty Rate before Stadium Renovation: 6.8% Poverty Rate after Stadium Renovation: 12.1% Median Income before Stadium Renovation: $65,126 Median Income after Stadium Renovation: $51,956 Cost to Taxpayers: $169.1 million Everything is bigger in Texas, and that certainly includes the amount of money taxpayers are asked to spend on subsidizing NFL stadiums. When the expansion Houston Texans joined the league in 2002, the public was forced to fund 61 percent of the cost of the team s $474 million retractable-roof stadium. Despite having one of the league s swankier stadiums for years, the team has never had any real success. The Texans have never been to the Super Bowl and, in its 13 year history, the team has scrounged up only 88 victories. In other words, taxpayers have paid $3.3 million for each win in the team s forgettable history. NRG Stadium, as it is known these days, may be the worst investment to hit Houston since Enron. Poverty Rate before Stadium: 19.1% Poverty Rate after Stadium: 18.4% Median Income before Stadium: $54,929 Median Income after Stadium: $52,533 Cost to Taxpayers: $289 million Indianapolis Colts The Indianapolis Colts are worth nearly $1.5 billion. 8 That didn t prevent the Colts, and the team s owner Robert Irsay, from mooching off taxpayers to build Lucas Oil Stadium, which opened in In fact, no team in the NFL has received more public money in recent years than the Indianapolis Colts. Taxpayers ponied up an astounding $619.6 million of the stadium s $719.6 million construction price or $730 for every man, woman and child in the city of Indianapolis. 9 Taxpayers massive investment in building a stadium for a billionaire team owner proved disastrous for the Indianapolis economy. Since the construction of the stadium, the poverty rate in Marion County, the Sacking Taxpayers: How NFL Stadium Subsidies Waste Money & Fall Short on Their Promises of Economic Development -8-

11 Taxpayers massive investment in building a stadium for a billionaire team owner proved disastrous for the Indianapolis economy. Since the construction of the stadium, the poverty rate in Marion County, the county in which Indianapolis is located, skyrocketed from 12.7 percent to 21.3 percent and the median household income dropped more than $10,000, from $51,553 to $41,478. Pushing off 86 percent of the cost of stadium construction on to the backs of taxpayers freed up plenty of spending money for the Colts. Some of that money was used to buy a condo for Kimberly Wundrum, Irsay s mistress. 10 Wundrum later died of an overdose in the Colts-owned home. Shortly thereafter, Irsay was arrested for DUI and drug possession, was suspended six games by the NFL and attended rehab in several facilities around the country. It s easy to understand why many Indianapolis-area taxpayers are left with the feeling that, by being forced to provide such massive subsidies for the Colts stadium, they were ultimately subsidizing Jim Irsay s wild and irresponsible lifestyle. Jacksonville Jaguars Poverty Rate before Stadium: 12.7% Poverty Rate after Stadium: 21.3% Median Income before Stadium: $51,553 Median Income after Stadium: $41,478 Cost to Taxpayers: $619.6 million The Jaguars are a joke. The team hasn t had a winning season since 2007 and even their jerseys widely considered among the worst in the NFL are atrocious. But Jacksonville taxpayers aren t laughing. They ve spent over $100 million on a stadium for one of the worst franchises in pro sports. When Jacksonville was awarded its expansion franchise, local officials gave away $60 million of taxpayers hard-earned money to underwrite a large chunk of a $134 million renovation to prepare what is now known as EverBank Field for NFL competition. More recently, Jaguars owner Shahid Khan strong-armed Jacksonville residents and visitors to shell out $43 million of a $63 million stadium renovation project which was recently completed. 11 Now it looks like spending $104 million on updating the Jaguars stadium in the past 20 years still won t be enough to keep an NFL team in Jacksonville. Khan, whose net worth is estimated at $4.7 billion, appears ready to relocate the Jaguars to either London or San Diego if north Florida officials object to using taxpayer money to help subsidize further stadium schemes. 12 Poverty Rate before Stadium Renovation: 14.5% Poverty Rate after Stadium Renovation: 17.1% Median Income before Stadium Renovation: $51,729 Median Income after Stadium Renovation: $47,876 Cost to Taxpayers: $60 million Sacking Taxpayers: How NFL Stadium Subsidies Waste Money & Fall Short on Their Promises of Economic Development -9-

12 Kansas City Chiefs The Chiefs haven t won a Super Bowl since 1970 and have been bad as much as they ve been good since. Still, despite the team s relative lack of success, Chiefs fans fill up every home game at Arrowhead Stadium and create one of the great home field advantages in all of American sports. It s odd, then, that the Hunt family who owns the Chiefs didn t reward the Kansas City community for their unwavering support by paying to renovate Arrowhead themselves. Instead, the Chiefs stuck it to taxpayers, forcing the public to fund 68 percent of the cost of the stadium s 2011 renovations. The Hunt family made it very clear to the Kansas City community that they view fans and taxpayers, not as partners, but as suckers. Miami Dolphins Poverty Rate before Stadium Renovation: 14.9% Poverty Rate after Stadium Renovation: 17.2% Median Income before Stadium Renovation: $52,054 Median Income after Stadium Renovation: $46,802 Cost to Taxpayers: $263.4 million When Miami Dolphins owner Stephen Ross was turned down in his effort to secure public funds to renovate Sun Life Stadium, he didn t whine or threaten to relocate the team. He simply decided to fund the upgrades himself. Ross is spending more than $400 million on a series of ongoing renovations that include all new seats, private clubs, a craft beer pub and a new canopy that covers more than 90 percent of spectators, protecting them rain and the glaring South Florida sun. 13 Rather than viewing taxpayers as ATMs that exist to service his business with subsidies, Ross respects tax dollars and is willing to use his own money to improve his business, rather than corporate welfare handouts. Every other owner in the NFL could take a lesson from Stephen Ross. Poverty Rate before Stadium Renovation: 23.6% Poverty Rate after Stadium Renovation: Renovations were not complete when most recent poverty information was published. Median Income before Stadium Renovation: $44,240 Median Income after Stadium Renovation: Renovations were not complete when most recent median income information was published. Cost to Taxpayers: $0 million Sacking Taxpayers: How NFL Stadium Subsidies Waste Money & Fall Short on Their Promises of Economic Development -10-

13 Minnesota Vikings When the Vikings new $1 billion U.S. Bank Stadium is complete, it will be the third most expensive NFL stadium ever built, and the second most expensive stadium for taxpayers. Only the Colts stadium burned through more tax dollars. Vikings owner Zygi Wilf pressured taxpayers into shelling out $512 million thanks to the timeless tactic of blackmail. Wilf demanded that the state government pay hundreds of millions of dollars towards a new downtown Minneapolis stadium or he would move the team to Los Angeles. Faced with the prospects of losing a team that has been part of the Minnesota community for 55 years, state lawmakers got to work passing an extreme new cigarette tax and other funding sources to underwrite the half-billion dollar payoff to Wilf in exchange for keeping the team in the Twin Cities. The state is in no position to give Wilf a $512 million bribe. Minnesota has the sixth-highest tax burden in America and the state is facing a $2.2 billion deficit. Poverty Rate before New Stadium: 9.1% Poverty Rate after New Stadium: New stadium was not complete when most recent poverty information was published. Median Income before New Stadium: $66,789 Median Income after New Stadium: New stadium was not complete when most recent median income information was published. Cost to Taxpayers: $498 million New England Patriots Thanks to controversies such as Spygate and Deflategate, the Patriots are considered cheaters by many football fans. There s no doubt the Patriots cheated taxpayers out of $72 million for Gillette Stadium. While the team s billionaire owner Robert Kraft could have easily paid the full $412 million cost of the stadium, he couldn t resist taking a $72 million handout courtesy of hardworking taxpayers. With four Super Bowl victories since 2002, the Patriots are the most successful team of the past two decades. Unfortunately for residents of the prosperous area surrounding the facility, the team s success and the taxpayer-subsidized stadium have not helped the local economy. The poverty rate increased by 38 percent in the years after Gillette Stadium opened in Poverty Rate before Stadium: 5% Poverty Rate after Stadium: 6.9% Median Income before Stadium: $83,004 Median Income after Stadium: $83,830 Cost to Taxpayers: $72 million Sacking Taxpayers: How NFL Stadium Subsidies Waste Money & Fall Short on Their Promises of Economic Development -11-

14 New Orleans Saints A more fitting name for the Mercedes-Benz Superdome, which plays host to Saints home games, is the Boondoggle in the Bayou. Since the stadium opened in 1975, local, state and even federal taxpayers have been shaken down to fund the venue. Local taxpayers shelled out $134 million in original construction cost. State taxpayers later bankrolled a $186.5 million lease arrangement for the facility. In the months following Hurricane Katrina, federal taxpayers handed out nearly a quarter billion dollars in federal giveaway to repair the venue, according to a report by the Taxpayers Protection Alliance. 14 Finally, Louisiana residents furnished $85 million for additional Superdome renovations between 2009 and All told, about $650 million have been taken out of the public till to subsidize the Superdome. Being a taxpayer in the Big Easy is a lot harder than it seems. New York Giants & New York Jets Poverty Rate before Stadium: 33.6% Poverty Rate after Stadium: 26.6% Median Income before Stadium: $34,096 Median Income after Stadium: $36,240 Cost to Taxpayers: $85 million The owners of the Giants and the Jets, who share MetLife Stadium in East Rutherford, New Jersey, deserve a special pat on the back from taxpayers. The entire $1.6 billion price tag of the revolutionary stadium s construction cost was financed with private dollars. That doesn t mean taxpayers are off the hook completely. New Jersey residents are still paying for the stadium previously used by the two teams even though it was demolished in Giants Stadium, the former home of the Giants and the Jets, may be best known for an urban legend claiming Jimmy Hoffa was buried under one of the stadium s end zones. While Hoffa might not be buried under Giants Stadium, New Jersey taxpayers surely are buried under a seemingly never-ending pile of debt payments. Bond payments for the old stadium, which opened in 1976, continue to haunt New Jersey residents who will continue to pay $35.8 million a year in principal and interest until Poverty Rate before Stadium: 4.6% Poverty Rate after Stadium: 8.1% Median Income before Stadium: $84,670 Median Income after Stadium: $81,615 Cost to Taxpayers: $0 Sacking Taxpayers: How NFL Stadium Subsidies Waste Money & Fall Short on Their Promises of Economic Development -12-

15 Oakland Raiders The Raiders play in one of the more lackluster stadiums in all of sports. But rather than coming up with the money to finance the stadium privately, Raiders owners have instead chosen to go with plan B: begging. Coming off as freeloading hustlers is nothing new for the Silver and Black. In 1983, the team moved from Oakland to Los Angeles because Oakland officials wouldn t pay to build luxury boxes in the Raiders stadium. In 1995, the Raiders moved back to Oakland after local elected officials bribed the team with $200 million in taxpayer-funded renovations to the O.co Coliseum. Now, once again, the Raiders are searching for a new home and are coming off looking less like an NFL team and more like a panhandling bum with his hand out in the process. Oakland, Los Angeles, San Antonio and Portland have all expressed interest in pitching in tax dollars to help the Raiders build a new stadium. The Raiders have done little to assuage the notion that the team will go to the city with the biggest pile of public money waiting for it. Philadelphia Eagles Poverty Rate before Stadium Renovation: 11.3% Poverty Rate after Stadium Renovation: 13% Median Income before Stadium Renovation: $68,319 Median Income after Stadium Renovation: $72,128 Cost to Taxpayers: $200 million Replacing a ramshackled stadium that was known as one of the rowdiest in all of pro sports and even housed a jail for a time was never going to be easy. But Eagles owner Jeffrey Lurie made it particularly hard on taxpayers by forcing them to pay $188 million of the cost of replacing Veterans Stadium with Lincoln Financial Field. In addition to a handout from the state of Pennsylvania, the Eagles also receive a regular subsidy from city taxpayers to manage the facility. If Eagles fans are willing to boo Santa Claus while pelting him with snowballs during a halftime performance, Lurie and the state and local lawmakers who put taxpayers on the hook for nearly $200 million deserve similar treatment. Poverty Rate before Stadium: 23.8% Poverty Rate after Stadium: 26% Median Income before Stadium: $41,087 Median Income after Stadium: $36,918 Cost to Taxpayers: $188 million Sacking Taxpayers: How NFL Stadium Subsidies Waste Money & Fall Short on Their Promises of Economic Development -13-

16 Pittsburgh Steelers Taxpayers should be waving their Terrible Towels in disgust after seeing how the increasing taxes in order to fund 61 percent of the construction cost of Heinz Field harmed the city. Every resident of Pittsburgh faced $560 in total new taxes as a result of the stadium. That heavy burden reduced the amount of disposable income the average person had to spend, harming businesses, such as restaurants and movie theaters, that rely on discretionary income. This reality is reflected in higher levels of poverty and a lower median household income. San Diego Chargers Poverty Rate before Stadium: 11% Poverty Rate after Stadium: 13.5% Median Income before Stadium: $54,671 Median Income after Stadium: $51,400 Cost to Taxpayers: $171.6 million Even Chargers top brass are rolling their eyes at San Diego officials pathetically scrambling to throw tax dollars at the team in an attempt to prevent the Chargers from bolting town. In July, the San Diego City Council approved spending $2.1 million of public money on environmental studies needed to lay the groundwork for a new taxpayer-funded stadium for the Chargers even though the team called the study a gigantic waste of taxpayer time and money. 16 The council hopes that ramming through a last-minute scheme for a publicly subsidized stadium will prevent the Chargers from relocating to the Los Angeles area as early as In reality, Chargers ownership has shown no interest in remaining in San Diego, and San Diego taxpayers have shown little willingness to fund a new stadium after paying $60 million in recent years to renovate the current facility. Still, the council hopes taxpayers will be amenable to spending $242 million to fund a new football stadium and, potentially, shelling out as much as $755 million more for operations, maintenance and infrastructure costs even though there s no guarantee there would be a team left in San Diego to play in the stadium. 17 Poverty Rate before Stadium Renovation: 15.5% Poverty Rate after Stadium Renovation: 15.3% Median Income before Stadium Renovation: $56,976 Median Income after Stadium Renovation: $61,365 Cost to Taxpayers: $60 million Sacking Taxpayers: How NFL Stadium Subsidies Waste Money & Fall Short on Their Promises of Economic Development -14-

17 San Francisco 49ers Levi s Stadium, the home of the 49ers, is only a year old, but that s enough time for taxpayers to realize that the project is fool s gold. The owners of the 49ers convinced the city of Santa Clara to invent a new tax on tourists to help fund a $114 million government handout to the team even though the 49ers are worth an estimated $1.6 billion and the team s owners clear about $100 million a year in profits. 18 Santa Clara officials sold taxpayers on the project by claiming the stadium would attract a 900,000 square foot office complex to the area around the stadium. Spending $114 million in exchange for drawing hundreds of jobs to the area sounded like a decent trade-off to some taxpayers until it was revealed that the office building would ve been built whether or not the stadium was there. 19 Seattle Seahawks Poverty Rate before Stadium: 9.1% Poverty Rate after Stadium: New stadium was not complete when most recent poverty information was published. Median Income before Stadium: $81,840 Median Income after Stadium: New stadium was not complete when most recent median income information was published. Cost to Taxpayers: $114 million Seahawks fans may be flying high from two consecutive Super Bowl appearances, but King County taxpayers must have a sinking feeling when they think about the laundry list of new taxes implemented to fund CenturyLink Field. In order to pay the public s $300 million portion of the stadium s $461 million construction cost, elected officials employed five taxes and fees on Seattle-area residents and visitors, including lottery funds, a hotel tax, sales taxes, a ticket tax and a parking tax. Sure, a Super Bowl is nice, but living in a city that doesn t suffocate its residents with taxes is even better. Poverty Rate before Stadium: 8.6% Poverty Rate after Stadium: 12.4% Median Income before Stadium: $68,507 Median Income after Stadium: $71,779 Cost to Taxpayers: $300.3 million Sacking Taxpayers: How NFL Stadium Subsidies Waste Money & Fall Short on Their Promises of Economic Development -15-

18 St. Louis Rams The Rams might not win a lot of football games, but they certainly win the award for having the biggest villain for an owner. Stan Kroenke is worth well over $6 billion, yet he refuses to pay for stadiums for the teams he owns. Kroenke obviously believes struggling families should buy his stadiums, even though he s the one raking in tens of millions of dollars a year from the Rams, as well as his other professional teams, including the NBA s Denver Nuggets and the Colorado Avalanche of the NHL. St. Louis and Missouri taxpayers paid the full $280 million cost of construction for the Edward Jones Dome in But that isn t good enough for Kroenke, who is threatening to move the Rams back to Los Angeles if the public doesn t agree to build him another, newer stadium. The bad news for taxpayers is that state and local officials appear willing to give in to Kroenke s absurd demands. Government officials have apparently promised Kroenke $500 million in subsidies towards his $998 million dream stadium and that s in addition to the $12 million annually the state is paying until 2022 on the Edward Jones Dome. 20 Tampa Bay Buccaneers Poverty Rate before Stadium: 29.5% Poverty Rate after Stadium: 27.2% Median Income before Stadium: $36,229 Median Income after Stadium: $34,346 Cost to Taxpayers: $280 million The owners of the Buccaneers took the team s pirate theme a little too far when they plundered state and local taxpayers for the full $194 million price tag of Raymond James Stadium. Sure, several teams have tricked taxpayers into paying for a majority of the cost of a stadium in recent years. But no team has been daring enough to ask the public to pay for the entire cost of building a stadium and, certainly, no taxpayers have been dumb enough to fall for the idea -- since the Bucs pulled it off in Poverty Rate before Stadium: 16.5% Poverty Rate after Stadium: 16.8% Median Income before Stadium: $49,955 Median Income after Stadium: $49,510 Cost to Taxpayers: $194 million Sacking Taxpayers: How NFL Stadium Subsidies Waste Money & Fall Short on Their Promises of Economic Development -16-

19 Tennessee Titans Music City is still singing the blues about the slew of new taxes that hit the city in order to pay for the facility now known as Nissan Stadium. More than $200 million was taken from taxpayers in order to fund 71 percent of the cost of the stadium. Nashville became poorer for the experience quite literally. The poverty rate in Nashville skipped from 13.8% before the stadium was built to 17.8% after it was completed. Washington Redskins Poverty Rate before Stadium: 13.8% Poverty Rate after Stadium: 17.8% Median Income before Stadium: $53,828 Median Income after Stadium: $47,239 Cost to Taxpayers: $206.9 million The Redskins name and logo is considered offensive and insensitive by some. But for many Maryland taxpayers, the team s real offense was the $70.5 million used to finance the Redskins FedEx Field. It appears to be just a matter of time until Maryland taxpayers are stuck paying the mortgage on a nearly new stadium without a team to play in it. Even though the Landover, Maryland, stadium is only 17 years old, Redskins owner Dan Snyder is threatening to leave for greener pastures. Apparently Snyder believes he can create a bidding war between local lawmakers in Maryland, Virginia and Washington, D.C., who want the new home of the Redskins built in their town. 21 The winner, of course, will be the town willing to bribe Snyder with the most tax dollars to put towards the new stadium. Of course, it s entirely likely that 15 or 20 years down the road Snyder will pull the same trick again. Poverty Rate before Stadium: 8.1% Poverty Rate after Stadium: 9.9% Median Income before Stadium: $69,280 Median Income after Stadium: $71,682 Cost to Taxpayers: $70.5 million Sacking Taxpayers: How NFL Stadium Subsidies Waste Money & Fall Short on Their Promises of Economic Development -17-

20 Note: All stadium funding information taken from these sources: Jonathan McFadden. Panthers plan renovation of 158 stadium suites. Charlotte Observer. January 8, Available at: (Accessed August 30, 2015.) Aaron Kuriloff and Darrell Preston. Subsidies for Saints owner open New Orleans to Super Bowl. Bloomberg Business. January 31, Available at: (Accessed August 30, 2015.) Austin Knoblauch. Oakland mayor doesn t support using tax dollars to keep Raiders. Los Angeles Times. May 26, Available at: story.html (Accessed August 28, 2015.) Dale Singer. Weighing dollars and emotions in debate over the Dome. St. Louis Beacon. February 7, Available at: (Accessed August 30, 2015.) Ron Word. Stadium Statistics. Folio Weekly. August 21, Available at: (Accessed August 30, 2015.) Jaime Hellman. Money for nothing: How taxpayers foot the bill for pro sports stadiums. Al Jazeera America. August 10, Available at: (Accessed August 30, 2015.) Citations James T. Bennett. They play, you pay. Springer Science + Business Media, LLC p Mike Hassinger. Enough of this anti-stadium silliness, already. Peach Pundit. January 15, Available at: (Accessed August 28, 2015.) Matthew Frankel. Stephen Ross $350 Million Renovation Project Is a Great Example of Socially Responsible Investing. The Motley Fool. May 24, Available at: (Accessed August 28, 2015.) Leo Roth. Renovated Ralph gives Pegulas plenty to ponder. Rochester Democrat and Chronicle. September 21, Available at: (Accessed August 30, 2015.) Conventions, Sports & Leisure International. NFL Stadium Funding Information: Stadiums Opened Since December 2, Available at: (Accessed August 25, 2015.) and 2013 median household income data and total population living in poverty data were used in this report. (2013 is the most recent year for which county-level data is available). Median household income date is presented in 2013 constant dollars. Figures from 1995 are adjusted to reflect the 153 percent inflation that occurred between , according to the Bureau of Labor Statistics. All median household income data and total population living in poverty data is available at: United States Census Bureau All Ages in Poverty. Small Area Income and Poverty Estimates. Available at: saipe.html?s_appname=saipe&map_yearselector=2013&map_geoselector=aa_c&s_state=04,06,08,12,13,1 7,18,22,24,25,26,27,29,34,36,37,39,42,47,48,53,55#view=Mapping (Accessed August 31, 2015.) and United States Census Bureau. State and County Estimates for Small Area Income and Poverty Estimates. Available at: (Accessed August 31, 2015.) 2 All-time records of current NFL franchises. Pro Football Hall of Fame. July Available at: profootballhof.com/userfiles/file/start-of-2015-season.pdf (Accessed September 4, 2015.) 3 Tim Tucker. Falcons stadium cost grows to $1.2 billion. Atlanta Journal-Constitution. October 28, Available at: (Accessed August 28, 2015.) Sacking Taxpayers: How NFL Stadium Subsidies Waste Money & Fall Short on Their Promises of Economic Development -18-

21 4 Jonathan McFadden. Panthers plan renovation of 158 stadium suites. Charlotte Observer. January 8, Available at: (Accessed September 1, 2015.) 5 Dashiell Bennett. The worst stadium financing deal ever is still crippling Cincinnati s taxpayers. Business Insider. July 12, Available at: (Accessed September 1, 2015.) 6 Ibid. 7 All-time records of current NFL franchises. Pro Football Hall of Fame. July Available at: profootballhof.com/userfiles/file/start-of-2015-season.pdf (Accessed September 4, 2015.) 8 Mark Alesia. Forbes: Colts are world s 27th-most valuable sports franchise. Indianapolis Star. July 17, Available at: (Accessed September 1, 2015.) 9 State & County QuickFacts. United States Census Bureau. August 6, Available at: census.gov/qfd/states/18/ html (Accessed September 4, 2015.) 10 Tim Evans and Mark Alesia. The first look at the association between Jim Irsay and Kimberly Wundrum. October 15, Available at: (Accessed September 1, 2015.) Citations 11 Ron Word. Stadium Statistics. Folio Weekly. August 21, Available at: (Accessed August 30, 2015.) and David Bauerlein. Council approves $63 million upgrade of EverBank Field. Florida Times-Union. November 13, Available at: (Accessed August 30, 2015.) 12 Derek Torgerson. Good Bye Chargers, Hello Jaguars? NBC 7 San Diego. August 31, Available at: (Accessed September 1, 2015.) 13 Manouk Akopyan. Dolphins unveil $400M renovation plan for Sun Life Stadium. NFL.com. January 18, Available at: (Accessed September 6, 2015.) 14 Drew Johnson. Taxpayers spend $2.7 billion to subsidize March Madness venues. Taxpayers Protection Alliance. March 30, Available at: id=154 (Accessed September 1, 2015.) 15 Ken Belson. As stadiums vanish, their debt lives on. New York Times. September 7, Available at: (Accessed August 30, 2015.) 16 David Garrick. San Diego approves Chargers stadium money. San Diego Union-Tribune. July 14, Available at: (Accessed August 28, 2015.) and Tony Perry. San Diego Chargers: Approval of stadium funds would be waste of money. Los Angeles Times. July 14, (Accessed August 28, 2015.) 17 Liam Dillon. The Chargers stadium plan would cost taxpayers almost $1 billion. Voice of San Diego. May 20, Available at: (Accessed August 28, 2015.) 18 Drew Johnson. Golden Hammer: Many NFL stadiums built on the backs of taxpayers. Washington Times. September 4, Available at: (Accessed September 2, 2015.) 19 Ibid. 20 Lawmaker opposition casts doubt on new Rams stadium in St. Louis. Associated Press. August 26, Available at: (Accessed September 1, 2015.) 21 Barry Petchesky. Dan Snyder Wants A New Stadium Because FedEx Field Is 17 Years Old Now. Deadspin. August 28, Available at: (Accessed September 6, 2015.) Sacking Taxpayers: How NFL Stadium Subsidies Waste Money & Fall Short on Their Promises of Economic Development -19-

22 TOP 10 WORST PERFORMING TEAMS BY POVERTY RATE Appendix Minnesota Vikings Cleveland Browns New England Patriots Carolina Panthers Seattle Seahawks Cincinnati Bengals Indianapolis Colts New York Giants New York Jets Green Bay Packers United States Average POVERTY RATE 1995 POVERTY RATE 2013 CHANGE % TOP 10 WORST PERFORMING TEAMS BY HOUSEHOLD INCOME Green Bay Packers Indianapolis Colts Detroit Lions Cleveland Browns Carolina Panthers Tennessee Titans Philadelphia Eagles Kansas City Chiefs Cincinnati Bengals Arizona Cardinals United States Average MEDIAN HOUSE- HOLD INCOME ,126 51,553 49,544 51,634 63,732 53,828 41,087 52,054 52,055 57,502 52, MEDIAN HOUSE- HOLD INCOME ,956 41,478 40,485 43,653 54,657 47,239 36,918 46,802 47,123 52,066 52,250 26% 28% 30% 31% 37% 40% 43% 43% 44% 5% CHANGE -25% -24% -22% -18% -17% -14% -11% -11% -10% -10% 0%