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Evaluating Parking Monetization as a Strategy for Subsidizing Major League Sports Facilities

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  • Geoffrey Propheter
  • Megan E. Hatch

Abstract

The public sector traditionally subsidizes construction of major league sports facilities with bonds. In 2012, the city of Sacramento, California, approved a parking monetization agreement to raise cash for a new arena, thereby potentially avoiding the risks of bond financing altogether. Though the subsidy proposal ultimately fell through, the increasing popularity of parking monetization suggests that it is only a matter of time before other local governments consider the approach. This paper evaluates the use of parking monetization as a financing strategy to construct major league sports facilities. While professional stadia are the primary focus, many of the criticisms apply to large public capital projects more generally. We conclude that parking monetization is a risky facility subsidization strategy and a poor alternative to traditional bond financing.

Suggested Citation

  • Geoffrey Propheter & Megan E. Hatch, 2015. "Evaluating Parking Monetization as a Strategy for Subsidizing Major League Sports Facilities," Growth and Change, Wiley Blackwell, vol. 46(1), pages 1-15, March.
    • Handle: RePEc:bla:growch:v:46:y:2015:i:1:p:1-15
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    File URL: http://hdl.handle.net/10.1111/grow.12068
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    1. Peter A. Groothuis & Bruce K. Johnson & John C. Whitehead, 2004. "Public Funding of Professional Sports Stadiums: Public Choice or Civic Pride?," Eastern Economic Journal, Eastern Economic Association, vol. 30(4), pages 515-526, Fall.
    2. John J. Siegfried & Andrew Zimbalist, 2000. "The Economics of Sports Facilities and Their Communities," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 95-114, Summer.
    3. Alm, James & Buschman, Robert D. & Sjoquist, David L., 2011. "Rethinking local government reliance on the property tax," Regional Science and Urban Economics, Elsevier, vol. 41(4), pages 320-331, July.
    4. Gregory Thompson & Jeffrey Brown & Torsha Bhattacharya, 2012. "What Really Matters for Increasing Transit Ridership: Understanding the Determinants of Transit Ridership Demand in Broward County, Florida," Urban Studies, Urban Studies Journal Limited, vol. 49(15), pages 3327-3345, November.
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    1. Antoine Barbier & Barbara Evrard & Nadine Dermit-Richard, 2023. "Predictive Modelling of Sports Facility Use: A Model of Aquatic Centre Attendance," Sustainability, MDPI, vol. 15(5), pages 1-17, February.

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