The Public Choice of Public Stadium Financing: Evidence from San Diego Referenda

Local politicians and team owners frequently argue that the public financing of stadiums is important for local economic development. The sports economics literature, however, has largely found that new professional sport facilities do not generate any new net economic activity. We provide context t...

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Main Authors: Candon Johnson, Joshua Hall
Format: Article
Language:English
Published: MDPI AG 2019-03-01
Series:Economies
Subjects:
Online Access:https://www.mdpi.com/2227-7099/7/1/22
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author Candon Johnson
Joshua Hall
author_facet Candon Johnson
Joshua Hall
author_sort Candon Johnson
collection DOAJ
description Local politicians and team owners frequently argue that the public financing of stadiums is important for local economic development. The sports economics literature, however, has largely found that new professional sport facilities do not generate any new net economic activity. We provide context to this literature by exploring the public choice in the public financing of stadiums. In 2016, San Diego had two ballot measures related to the San Diego Chargers. Measure C would allow officials to raise hotel taxes to pay for a new downtown stadium for the Chargers. Measure D would also raise hotel taxes, but explicitly prevented any money being spent on the Chargers. Both measures failed to receive 50% of the votes cast. We find that zip codes with a higher voter turnout were more likely to vote against both measures, highlighting the importance of the timing of referenda in limiting the ability of clearly defined groups, such as Chargers fans, to have a large influence on the voting outcome. Meanwhile, areas with more Trump voters were more likely to support higher taxes for the purpose of building the Chargers a new stadium.
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spelling doaj.art-0d52dd368f094740b14d604e251e24252022-12-22T04:23:35ZengMDPI AGEconomies2227-70992019-03-01712210.3390/economies7010022economies7010022The Public Choice of Public Stadium Financing: Evidence from San Diego ReferendaCandon Johnson0Joshua Hall1Center for Free Enterprise, West Virginia University, Morgantown, WV 26506, USACenter for Free Enterprise, West Virginia University, Morgantown, WV 26506, USALocal politicians and team owners frequently argue that the public financing of stadiums is important for local economic development. The sports economics literature, however, has largely found that new professional sport facilities do not generate any new net economic activity. We provide context to this literature by exploring the public choice in the public financing of stadiums. In 2016, San Diego had two ballot measures related to the San Diego Chargers. Measure C would allow officials to raise hotel taxes to pay for a new downtown stadium for the Chargers. Measure D would also raise hotel taxes, but explicitly prevented any money being spent on the Chargers. Both measures failed to receive 50% of the votes cast. We find that zip codes with a higher voter turnout were more likely to vote against both measures, highlighting the importance of the timing of referenda in limiting the ability of clearly defined groups, such as Chargers fans, to have a large influence on the voting outcome. Meanwhile, areas with more Trump voters were more likely to support higher taxes for the purpose of building the Chargers a new stadium.https://www.mdpi.com/2227-7099/7/1/22voting behaviorNational Football LeagueDonald Trump
spellingShingle Candon Johnson
Joshua Hall
The Public Choice of Public Stadium Financing: Evidence from San Diego Referenda
Economies
voting behavior
National Football League
Donald Trump
title The Public Choice of Public Stadium Financing: Evidence from San Diego Referenda
title_full The Public Choice of Public Stadium Financing: Evidence from San Diego Referenda
title_fullStr The Public Choice of Public Stadium Financing: Evidence from San Diego Referenda
title_full_unstemmed The Public Choice of Public Stadium Financing: Evidence from San Diego Referenda
title_short The Public Choice of Public Stadium Financing: Evidence from San Diego Referenda
title_sort public choice of public stadium financing evidence from san diego referenda
topic voting behavior
National Football League
Donald Trump
url https://www.mdpi.com/2227-7099/7/1/22
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