A newly released study suggests that, at least the NFL context, public financing of stadiums leads to lower ticket prices. The paper, The Use of Public Funds for Private Benefit: An Examination of the Relationship between Public Stadium Funding and Ticket Prices in the National Football League, by Matthew Brown (South Carolina), Daniel Rascher (USF), and Wesley Ward (Ohio), can be downloaded free of charge from this site. Here's part of the paper's abstract:
The purpose of this study was to examine the relationship between the use of public funds to build stadia and the profit maximizing goals of National Football League (NFL) franchises. A hypothesis was formulated that stated the impact of the public share of the construction cost would have no effect on relative ticket prices for those that consume the product. The cross-sectional data for a ticket price model, which consisted of seasonal data from every NFL team to play from 1991 through 2003, was investigated. The results showed an increase in public funding by 10% lowers ticket prices by 42 cents. As shown, the bulk of the variation in ticket prices was due to a general increase over time and MSA per capita income.
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