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Dennis Coates and Brad Humphreys, "Caught Stealing: Debunking the Economic Case for D.C. Baseball" Cato Briefing Papers No. 89, October 27, 2004 (cato.org)
Local politicians regularly seek to exploit the importance of sport to many Americans by promising to bring major athletic franchises to their area. District of Columbia Mayor Anthony Williams is the latest in that long line. In order to deliver their sporting goods, though, politicians often have to lavish subsidies on the new teams. Williams promised Major League Baseball a new ballpark for the D.C. franchise in the depressed Southeast section of the city, stating the initiative would bring thousands of jobs and economic development to the area, all without cost to the ordinary D.C. resident.
Economists Dennis Coates and Brad Humphreys say Williams' exorbitant claims "do not withstand scrutiny." They point out that the proposed rent to be paid by the new franchise to the city will fall in real terms over the years, providing a de facto rent subsidy from the city to the team. The "ballpark fee" to be imposed on the largest corporations in the city is also simply a tax under another name, some of which will be passed oil to Washington, D.C. residents in the form of lower wages or higher prices.
Moreover, Coates and Humphreys point out that promises of jobs and economic benefits are ...
Source: HighBeam Research, Political baseball.(Politics)