Stadiums don't have to drain the public purse

Over the past two decades, state and local governments across the U.S. have spent more than $20 billion on stadiums, and not just because their residents are sports fans. Lawmakers often see arenas as engines for economic development, hoping they will revitalize neighborhoods and create jobs. But the evidence that such investments pay off is thin.

Hoping to understand how cities can come up with a better game plan, professors Peter Boumgarden of Washington University in St. Louis and Nathan Jensen of the University of Texas at Austin did a deep dive into St. Louis’ Major League Soccer stadium, which opened in late 2022. It used innovative approaches to financing and economic development that challenge the traditional playbook – and judging by early indicators, including ticket sales, it seems to be working.

In their analysis, Boumgarden and Jensen outline four key lessons learned from St. Louis’ unique model. From strategic site selection to leveraging the stadium year-round and supporting local vendors, the case study highlights how thoughtful planning can maximize economic impact and minimize public burden. As the professors note, this approach could be a model for other cities looking to bring big-league excitement to town without breaking the bank.

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