Home Issues that matterWhy stadium subsidies fail – lessons from St. Pete and DC

Why stadium subsidies fail – lessons from St. Pete and DC

by Ron Diner

Why Stadium Subsidies Fail Communities Every Time

I don’t get it – when will cities ever learn to follow the facts, not the hype, and win in the long run? St. Petersburg already learned the hard way when the Rays stadium deal collapsed.  Now St. Pete has a chance to pull off a win that matters.  

But guess what’s happeing in Washington, D.C.  As the Washington Post points out, the Washington Commanders are negotiating with the city for a new stadium for a a similarly bad deal. The city’s proposed share: $1.1 billion. The team would pay virtually no property taxes, no lease payments, and get free parking. Add in tax subsidies and the total city giveaway balloons to $2.5 billion—almost the same corporate welfare package that sank the Rays deal in St. Petersburg.

The Commanders make the same claims we heard in St. Pete: “It’s worth it.” Promises of jobs, economic growth, and revitalization. But the facts as pointed out by John Mozena in his post —and more than 130 independent studies—show the same truth: stadiums don’t drive economic growth. Why would they? The jobs are mostly part-time, low-wage roles like selling beer and parking cars.

Even The Washington Post blasted the Commanders’ deal as corporate welfare.

The critique could have been written word-for-word about the Rays deal. The same pattern repeats itself across the U.S.:

  • Politicians push a deal without reviewing the facts or seeking genuine community input. (In St. Pete, an independent Mason-Dixon poll showed overwhelming opposition to the Rays deal.)
  • Overinflated promises of jobs, growth, and neighborhood revitalization. (In St. Pete, the neighborhood is already revitalized.)
  • Public funds handed over for private benefit.

The Big Picture

Cities that follow the facts—not the hype—win in the long run.

Cities that slow down, listen to residents, and plan for true community value create legacies that last.

A Reminder for St. Petersburg

The Rays will remain at Tropicana Field for the next three years. That gives St. Petersburg valuable time—and we should use it wisely. The 86-acre Gas Plant site is too important to carve up piecemeal or rush into short-term projects.

Nothing should be built or committed until the entire site plan is thoughtfully developed.

Don’t waste time and money on  a convention center study.  But start with a Community Advisory Council and truly independent outside experts to guide the process. Everything else—zoning, design, and the decision whether to proceed city-led (which we recommend) or with outside developers—should follow from that foundation, not precede it.

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