From Deseret News archives:
Fund soccer stadium by taxing fans who attend
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The result is a bit of a smoke-and-mirrors trick. People see the bright lights and packed gathering places, but they don't see the dark, vacant parts of town where those places might have located otherwise. There is no net gain.
In Utah, however, the tax structure gives cities a natural incentive to attract drawing cards, such as stadiums. That's because cities benefit from a large portion of sales taxes generated within their own borders. A soccer stadium just might lure a restaurant or shopping center away from another Utah city.
In sports, we would call this an interception. But in a metropolitan area, a win for one city isn't necessarily a win for taxpayers everywhere.
So is the new soccer team a bad thing for the Wasatch Front? Would a soccer stadium be a horrible thing?
I'll let Andrew Zimbalist answer that one. He's an economics professor at Smith College in Massachusetts who has authored books on sports economics and is clear about the downside of public financing. Having a major league team, he said in a recent interview with a state department journal on sports in America, does indeed have its benefits.
A special experience, but not necessarily economic development.
If cities in Utah want to help build a stadium, do it by taxing the fans who attend the games. Attach a surcharge on tickets or hot dogs or parking. Let all the regular taxes it generates go to the city's general fund.
Maybe then Checketts will be right in his predictions. Maybe then a stadium would be a benefit, and not a drain.
Jay Evensen is editor of the Deseret Morning News editorial page. E-mail: even@desnews.com
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