Traditionally, many cost-benefit analyses of stadiums suggests that they do not create economic value within a community; rather they have the effect of redirecting entertainment dollars that would have been spent elsewhere in the community. This can have the effect of concentrating economic activity within a small area of the community and diminishing business activity at smaller businesses such as movie theaters and mom and pop restaurants.

Since jobs provided by stadiums are typically part-time and only provided on a short-term basis, claims of job creation provided by stadiums have also been critically questioned. These findings have led many public officials and policy professionals to take the stance that financing of stadiums is not an efficient use of public funds.

This cost-benefit analysis looks at how geographic position of publicly financed stadiums affects the efficiency outcome of traditional stadium cost-benefit analyses. Specifically, it looks at how urban areas straddling two or more states can benefit from the public financing of sports coliseums and stadiums.