Tax Breaks for Sports Franchises


There
is often much discussion  as to whether or not sports franchises should
receive tax breaks and incentives for building a new  facility in a
particular city. Often times, and rightfully so, there is much
opposition to this concept.


Many
people believe that because sports figures receive huge salaries and
incentives for playing , the industry has plenty of money and doesn’t
need tax payer assistance.  Many believe that the fans should pay for
any new stadium as they are the ones who will be benefiting from it.
Most often the opinions vary depending on whether or not the individual
is a sports fan.


If
you look at a sports franchise as a business, which in today’s world,
that is the way it needs to be addressed, one begins to realize that
most states and municipalities give some sort of tax break for large
industries to locate in the area. Often times, the revenue received from
not only sports teams but industries as well, far out weigh the revenue
lost in tax dollars.


There
are many arguments both supporting and against this. Many people
believe no business or corporation should receive tax breaks or special
funding.  This idea of giving tax breaks for businesses was born in the
1970’s. Many companies were being regulated and taxed to death in the
northern states, mainly Michigan. Southern states began to realize they
could offer a better and more competitive business environment by their
already lower taxes and costs of doing business.


Soon
the idea caught on, and a competition arose as to which state could
give the better deal. It gained a lot of momentum and today it has
almost gotten out of hand. Looking back , this whole problem was only
created because local and state governments got greedy and kept killing
the goose that laid the golden egg.


The
idea of sports franchises receiving incentives for staying or moving to
a particular city sprang from this movement. Soon teams were demanding
new stadiums that weren’t needed, and huge tax incentives besides.


Things
are starting to turn around , in some instances , sports teams can no
longer hold a city hostage. there have been several examples where a
team threatened to move their franchise if a new stadium wasn’t built,
the city refused, and no other city could be found to fail into the
trap. As a result, the team stayed where they are and forced to play in a
facility that is barely 30 years old.


I,
myself am a huge sports fan, however, I believe that if the ancient Egyptians could build pyramids to last thousands of years,I think a
sports team should be able to suffer  through  the hardship of playing
in a facility that is only 30 years old. Maybe tax breaks are a good
idea, but let’s not waste our hard earned money building facilities we
really don’t need.

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