Holy Cross Economics Professor Discusses the Effects of the Stadium Tax Break on Taxpayers

There are winners and losers in the new tax law, and sports teams are undoubtedly on the winning side, said Victor Matheson, professor of economics at College of the Holy Cross.

The tax law preserved a tax exemption that provides a federal subsidy to stadium projects through discounted interest rates on tax-free bonds, and Matheson, who has studied the economic impact of sports stadiums, told the Huffington Post that “This is the classic political economy problem of special interests.”

Although the NFL argues that communities benefit from stadiums because they incentivize economic growth, many economists including Matheson believe the financing deals serve only as  handouts for wealthy team owners.

“The use of tax-exempt financing can easily save an individual NFL owner $20 million in financing costs for the new stadium for every year of his lease,” Matheson said.

To read more, visit Huffington Post.