Local governments continue subsidizing stadiums by reasoning that the utility derived by the city’s citizens – by providing a leisure activity, a focus of civic pride, and external benefits for citizens who don’t attend the games but enjoy reading, talking, or listening about the team – is greater than the cost in dollars to the city.

 

 

Cities also view stadiums as an advertising expense since the increased exposure attracts tourism, investors, and businesses. Further, a stadium can be built to attract a team to the city, and besides the already mentioned benefits, the new team legitimizes the city as “Major-League” – making the team’s new home one of the premiere cities in the US (or on a global scale, the world).