Stadiums vanish, but their debt lives on
Ken Belson digs into the in today鈥檚 New York Times. In short, it鈥檚 a money loser, with $266 million in debt for which the citizens of New Jersey are liable. At the current rate, they鈥檒l be paying off $35.8 million per year until 2025.
The story is accompanied by a on stadium costs, public subsidies, and public debt. As Belson notes, 鈥淭he finances of public authorities are often murky. To determine that the RCA Dome in Indianapolis, which was demolished in 2008, has $61 million in debt remaining and will not be paid off until 2021, one must sift through 700 pages of bond documents.鈥�
A well known proposition in the field of public choice is that politicians deliver current benefits with hidden future costs. The story of stadium finance fits this model quite well.
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