{"id":16778,"date":"2025-10-23T03:00:12","date_gmt":"2025-10-23T03:00:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-tx\/16778\/"},"modified":"2025-10-23T03:00:12","modified_gmt":"2025-10-23T03:00:12","slug":"leading-sports-economist-calls-current-deal-to-publicly-fund-spurs-arena-insane","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-tx\/16778\/","title":{"rendered":"Leading sports economist calls current deal to publicly fund Spurs arena ‘insane’\u00a0"},"content":{"rendered":"

\"TheThe Spurs\u2019 current facility, the Frost Bank Center, is the 12th-newest in the NBA, according to one ranking. Credit: Wikipedia Commons \/ Zereshk<\/p>\n

It\u2019s \u201cinsane\u201d that Bexar County voters are being asked to approve public funding for a complex and risky deal to finance a new Spurs arena, a top sports economist who regularly analyzes stadium projects told the Current. <\/p>\n

Kennesaw State University economics professor J.C. Bradbury said the fallout from similar deals around the country suggests local taxpayers may end up footing much of the bill for the proposed $1.3 billion arena \u2014\u00a0likely with money from the city\u2019s general fund.\u00a0<\/p>\n

\u201cSan Antonio already built the Spurs a brand new arena. It\u2019s not even 30 years old, and it was refurbished a decade ago,\u201d Bradbury said of the Frost Bank Center, the NBA team\u2019s current home. \u201cThis is insane. The owner should be embarrassed for asking. It\u2019s indefensible public policy.\u201d<\/p>\n

The Spurs and city officials have argued that a new arena is public good that would revitalize downtown, retain workforce talent and create jobs. Some city leaders have also cautioned that without a new arena, the team could leave for another market. <\/p>\n

However, to Bradbury\u2019s point, the Frost Bank Center, which opened in 2002, is the 12th-newest arena in the league<\/a>. <\/p>\n

Bradbury, the author of books including The Baseball Economist: The Real Game Exposed, accused the Spurs\u2019 ownership group of looking for a revenue boost that tends to follow the opening of new arena \u2014\u00a0and hoping the public can help it foot the bill as it tries to improve its bottom line.<\/p>\n

New sports facilities with high-tech amenities tend to see upswings in attendance due to fan excitement, but it often wears off over time, the economist said. The other revenue boost comes from adding additional luxury boxes and premium seating.\u00a0<\/p>\n

\u201cIt\u2019s called the novelty effect, and the novelty effect results in elevated revenues for teams for about 10 years after a new venue opens,\u201d Bradbury added.\u00a0<\/p>\n

Although Bradbury speculates the Spurs are looking a financial shot in the arm, it\u2019s worth noting that the Silver and Black are among the league\u2019s most profitable small-market teams. The franchise raked in an estimated $363 million during the 2023-24 season, according to global data and business intelligence platform Statista<\/a>.\u00a0<\/p>\n

\"\"An updated rendering of what Project Marvel might look like if it ever gets completed. Credit: City of San Antonio<\/p>\n

Bradbury said there\u2019s no problem with Spurs looking to expand revenue. However, he takes issue with the team asking Bexar County taxpayers to front the majority of the risk associated with the complex public financing proposal now before voters. <\/p>\n

Under the city\u2019s current plan, the new Spurs arena would be funded using three mechanisms: a Project Finance Zone (PFZ), a Tax Increment Reinvestment Zone (TIRZ) and the county\u2019s visitor tax.\u00a0<\/p>\n

The PFZ involves sales tax revenue generated at Hemisfair that the state is allowing San Antonio to keep, as long as it\u2019s used before 2030 to finance a new arena, convention center upgrades or Alamodome renovations. <\/p>\n

The TIRZ will use property tax revenue collected within three miles of Hemisfair to fund the arena. <\/p>\n

Meanwhile, Bexar County voters will decide during the Nov. 4 election whether to raise the county visitors tax to 2% to cover the rest of the public financing.\u00a0<\/p>\n

And the Spurs have promised to throw in an additional $500 million.\u00a0<\/p>\n

Once upon a time, municipalities arranged public financing for sports facilities through a single sales tax increase \u2014\u00a0such as a gas tax \u2014\u00a0or via property tax revenue, Bradbury said. However, as public support for those methods eroded, team owners and city managers have been forced to get increasingly creative with public financing.<\/p>\n

Many of those new deals come with elevated risk, Bradbury said. <\/p>\n

In a funding proposal such as the one assembled in San Antonio, the projected revenue from various streams often fails to meet expectations, leaving taxpayers on the hook, the professor added.\u00a0<\/p>\n

\u201cThis happens quite a bit,\u201d Bradbury said. \u201cAt the end of the day, if there\u2019s a full-faith and credit requirement, which will likely be the case in this deal, then the taxpayers are on the hook. So, if there\u2019s not enough money in tourism, well then, some money can come out of your property taxes. And then they\u2019ll say, \u2018Oh, well, nobody could have foreseen this.\u2019 Even though this happens every single time.\u201d<\/p>\n

Indeed, international tourism is down already 8.2% this year<\/a> nationwide. Meanwhile, San Antonio business owners recently told the Current<\/a> that service and hospitality revenues are down as much as 15% in recent months.\u00a0<\/p>\n

Bradbury points to a stadium deal gone awry<\/a> in Worcester, Massachusetts, as a stark warning to taxpayers. That Boston suburb used a similar tax-revenue mechanism to pay for a minor-league baseball stadium. However, when expected revenue didn\u2019t materialize, the City of Worcester was forced to dip into public funds to make the debt payments.\u00a0<\/p>\n

\u201cChambers of commerce \u2014 I don\u2019t know what it is about these groups \u2014 but they\u2019re always the ones behind this stuff,\u201d Bradbury said. \u201cI think a lot of it has to do with them being the ones who are going to have their club seats subsidized \u2014\u00a0the ones with season tickets. And they\u2019d like for you to help. I read these op-eds in the Express-News, and I\u2019m like, \u2018These are the greatest hits of every empty talking point.\u201d<\/p>\n

Early voting on Proposition B, which would allocate the visitor tax to the proposed Spurs arena, runs now through Oct. 31. The polls also will reopen 7 a.m.-7 p.m. on Nov. 4. <\/p>\n

Voters can find more information on the election, including polling locations, by visiting the Bexar County Election Department\u2019s website<\/a>.<\/p>\n

Subscribe to SA Current newsletters.<\/a><\/p>\n

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