The other part of the money equation is TV rights. It is reported that in the National Football League the broadcast, cable and ticket dollars are pooled and divided equally between the franchisees, making up about half of each team's revenue. This explains why the name or the size of the town is not important; revenue sharing is paying for the big name players and the luxury boxes are making the profit-the regular seat fans are just window dressing.
So how does all this come about when the teams will move to any town that will build them a new stadium and stay there only until the next town offers a newer, bigger stadium. What would motivate a city to spend $100 - $150 million to build a sports palace? It has to be ego because the income stream is not there for the city. There is talk about increased sales tax and business activity for the area, but that is nothing compared to the debt service on the bonds to build the facility.
Generally these new or refurbished stadiums are getting built under the process of Redevelopment. Towns all over the country are willing and trying to go into debt by issuing bonds to pay for these white elephants. Whether It is Los Angeles, San Diego, Candlestick Park or Lake Elsinore, it's all the same boondoggle. The team will stay there for a few years and then be off to a new, brighter, bigger, fancier black hole for money. Los Angeles has certainly seen its share of transient teams. This is your money, because even though they are Redevelopment bonds, the cities, i.e., the taxpayers, are still responsible for the debt.
There is a distressing facet to Redevelopment bonds. In California, Redevelopment bonds do not have to get voter approval. The city council, through the Redevelopment agency can sell all the bonds they can get the underwriter to peddle and do so without the checks and balances of the people.
If there was ever an example of rob from the poor and give to the rich, Redevelopment is it. Just think about the Seattle Seahawks football franchise. To quote Fortune: "'It's not just about the play on the field anymore.' That's why, for example, Oregon billionaire Paul Allen waited to exercise his option to buy the Seattle Seahawks football franchise until after voters approved the $425 million stadium-finance package on June 17. Without the new stadium as the core of the franchise, the money-losing Seahawks just didn't measure up as a property worth owning." That's Paul Allen, the other half along with Bill Gates, of Microsoft fame. Does he need the taxpayers to build him a stadium so he can make even more money?
Redevelopment is not about removing blight; it is about corporate welfare. And as such, Redevelopment is a fraud.