When you think of hockey teams, which ones immediately come to mind? New York Rangers? Pittsburgh Penguins? Boston Bruins? Toronto Maple Leafs? Well, what about the Arizona Coyotes?
Despite immense fan apathy and holding the third-worst record in the 2016-2017 NHL season, state taxpayers may be forced to help pay for another hockey arena as the league attempts to seek our money from the southwest.
According to The Arizona Republic, the professional hockey team is demanding that Arizona taxpayers subsidize a new stadium, which would be the third arena in 20 years. The Coyotes franchise is seeking $225 million in public funds, partially funded by the state and the city of Tempe.
In a letter to state lawmakers, NHL commissioner Gary Bettman made the same case that has been debunked time and time again: taxpayer funded sports will generate economic growth!
“[The new stadium will create a true win-win for the team, the state, and the community. A victory that will generate new tax revenue capable of funding Arizona priorities like education and public safety,” he wrote.
Aw, how touching.
Is the investment worth it? Arizona fans don’t really seem to care since the team constantly ranks at the bottom of annual attendance rates. Here is a chart:
Thankfully, the legislation doesn’t have enough votes to be passed and the bill will likely die. Unfortunately, this won’t be the last time that a team requests money from taxpayers, either in Arizona or elsewhere. In 1990, $90 million was spent on the America West Arena. In 2002, $155 million in bonds were issued for a new arena for the Coyotes.
With that being said, rejecting the bill isn’t enough because franchises in all sports are constantly putting their hands out for tax subsidies. Last week, we reported that federal taxpayers doled out more than $1 billion for MLB franchises (SEE: Study: MLB franchises received $1.41 billion from U.S. taxpayers since 2000). That didn’t include state and local taxes!
Victor Matheson, a sports economist at the College of the Holy Cross, told Reason magazine that this is a waste.
“Independent economic research has typically not found that new hockey areas generate sufficient tax revenue to cover the cost of construction,” Matheson said. “Of course, even if it did, the question be why is it fair for an NHL team to direct its tax obligations towards its own facility while other businesses have to pay taxes that go to statewide governmental needs.”
If billionaire owners want to own a team then they should bear all of the costs, not taxpayers. That won’t stop them from raping the taxpayers in the future.
According to the NHL, public financing of the new stadium in Arizona creates a “win-win situation.”
It creates a win for the team’s owner, and a win for the league.
For everyone else that will be affected, they lose.