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Economists blast plans for public subsidy to help fund new D.C. United stadium
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D.C. United’s Luciano Emilio runs full stride at RFK stadium in Washington. Economists argue that a new stadium will not increase economic activity in D.C. – Getty File A proposed $150 million public subsidy for a new D.C. United soccer stadium at Poplar Point is a waste that “likely will not generate notable economic or fiscal benefits” for the city, more than two dozen economists argue in a joint statement. There is no formal proposal or legislation on the table, but opponents of a public subsidy are nevertheless organizing for a battle they expect to come. D.C. United and District leaders are negotiating a stadium subsidy ranging from $150 million to $225 million. The 26 academics, organized by the D.C. Fiscal Policy Institute, contend it is “dubious to justify the use of public funds to subsidize construction of a new professional soccer stadium” on the grounds of economic development. “A new soccer stadium cannot be expected to generate a net increase in economic activity in the Washington metropolitan area, but it may shift some entertainment spending from the Maryland and Virginia suburbs into the District,” the group wrote. “Nevertheless, the economic benefits to the District are not likely to outweigh the large proposed stadium subsidy.” University of Alberta economist Brad Humphreys, who co-signed the letter, said Tuesday that professional sports facilities “do not generate tangible economic benefits,” especially those used fewer than 30 times a year. That $150 million, he said, “could have a much higher social value than a soccer stadium.” “The primary benefit of the public subsidy goes to the owners of the team and the players of the team, and a small bit probably goes to fans of the team,” Humphreys said during a conference call with reporters. “But that’s a very small group of people that are benefiting.” D.C. officials are wary of any public financing proposal for D.C. United given the lengthy, bitter battle they endured over the Nationals’ ballpark. Ward 8 Councilman Marion Barry is the leading cheerleader, but just about everybody else is proceeding carefully in the face of mounting opposition. An online petition drive, organized by Friends of the Earth, had nearly 500 signatures as of midday Tuesday. “I think most people understand if the city’s involved there will be a public subsidy,” Mayor Adrian Fenty said in February. mneibauer@dcexaminer.com |
