which phenomenally popular american entertainment institution would you most like to see come to a sudden end by 2023

Fuck the NFL:

Pay to play: How 21 NFL stadiums have been financed

and

Taxpayers are paying billions for the renovations and construction of NFL stadiums. Here’s how

In 2022, the Tennessee Titans of the NFL unveiled their plans for a new stadium in the heart of Nashville. The 1.7 million-square-foot stadium can house 60,000 screaming football fans and is estimated to cost $2.1 billion.

The public would fund more than half of the stadium through a one-time contribution from the state of $500 million and $760 million through revenue bonds issued by Nashville’s Metropolitan Sports Authority.

Since 2000, public funds diverted to helping build professional sports stadiums and arenas have cost taxpayers $4.3 billion. While the NFL and team owners contend that building stadiums will provide economic growth for a city, economists and urban planners think otherwise.

The impact of a stadium can be something that leads to really great placemaking, and that is a catalyst for community gathering and other small businesses in a neighborhood. Yet a typical football stadium has a really different design, the impact on the surrounding community is really more just that the stadium is kind of like a big spaceship that is parked there.

The reason cities end up paying for stadiums begins with the issuance of tax-exempt bonds from state and local governments that the federal government has signed off on for decades.

These tax exemptions help lower the burden of high debt through low-interest municipal bonds used by cities and teams to pay for stadiums. Since 1913, municipal bonds have been a popular financing option for airports, roads, hospitals and schools. Private entities could still access these bonds but were subject to a volume cap limiting how many public bonds are issued annually.

As for stadiums, well, they weren’t subject to that cap. The Tax Reform Act of 1986 wanted to end the exemptions for private use, including stadiums. Instead, the bill inadvertently created a loophole allowing stadiums to be backed by tax-free public bonds.

The loophole works by creating an artificial financing structure through tax-exempt municipal bonds. To gain access to those bonds, private companies must fail one of two tests stipulated by the Tax Reform Bill of 1986.

The private use-case test states that a private entity can use no more than 10% of the money from a bond, a test that NFL teams will most certainly pass. Then there’s the private-payment test which states that no more than 10% of the bond’s debt service is backed by the stadium itself.

So if a state or local government is willing to finance at least 90% of the stadium’s cost, it fails the private-payment test — meaning the stadium will get tax-exempt financing through municipal bonds.

Automatic thread bump. This poll's results are now in.