A proposed NBA arena in downtown Sacramento would have an $11.5 billion economic impact, according to a study commissioned by the mayor’s political action committee. The group is designed to make the case for the city’s proposed $258 million subsidy for the arena.
Economics professor Dennis Coates was interviewed for an article in The Sacramento Bee about the report. He argued against studies such as the one in Sacramento, saying sports stadiums simply move money from one part of the city to another as consumers spend money on tickets for sporting events rather than other forms of entertainment.
“Basically they are just PR documents,” Coates said. “I’m pretty sure people eat and drink even if they don’t have a team in town that night,” he added.
You can read the full article in The Sacramento Bee here.