Economists see little payoff for cities that subsidize pro sports facilities
CALGARY — City subsidies for professional sports teams like the Calgary Flames can be justified in the name of civic planning, pride or politics, but suggestions that they result in net growth to the overall economy don’t hold water, economists say.
The Flames said Tuesday they were pulling out of negotiations with the city over building a new arena to replace the 34-year-old Scotiabank Saddledome — the league’s second oldest — because two years of talks have been unproductive.
Some proponents of giving land, loans or direct subsidies to professional sports projects say the investment is repaid in economic benefits for the city but economists say numerous studies have shown that’s not the case.
“Overall, the research is pretty clear that there aren’t aggregate benefits of such subsidies for the city as a whole,” said Trevor Tombe, associate professor of economics at the University of Calgary.