Rhode Island GOP: PawSox Stadium Big Waste of Money
For Immediate Release
February 26, 2018
A NEW STADIUM WILL NOT PAY FOR ITSELF
Warwick, RI -For months the PawSox ownership and their allies have been trying to fool the public by claiming that a new PawSox stadium will pay for itself, and today their allies produced a poll trying to show the public would support their new stadium proposal.
In response, Rhode Island Republican National Committeeman Steven Frias commented: “The truth is that a new PawSox stadium will not pay for itself.
First, the PawSox currently do not generate enough tax revenues to pay for a new stadium. Under the proposed legislation, taxpayers will pay $3.2 million a year for 30 years or a total of $96 million. According to RI Commerce, the PawSox generate less than that now. They generate about $1.6 million a year in actual sales and income tax revenues, and some of this income tax revenue withheld during the year is refunded after state tax returns are filed.
Second, the tax revenue estimates are based, in part, on a surge of more than 40 percent in attendance. This is unlikely and certainly not sustainable in the long-run. Since the new Pawsox ownership bought the team, and began demanding a new taxpayer funded stadium, attendance has declined by 20 percent. Building a new stadium will not help bring back fans turned off by the new ownership’s demands for taxpayer subsidies.
Third, tax revenue estimates relied upon by the PawSox are not reliable and can be easily manipulated. When the PawSox wanted to build a new stadium in Providence, their consultants said the new stadium would generate more than $2 million a year. Now, these same consultants say a new stadium in Pawtucket will generate more than $3 million a year. These estimates can’t be trusted.
Lastly, economists are nearly unanimous in concluding that the economic benefits generated by sports stadiums are very small, smaller than stadium advocates say, and smaller than the size of the taxpayer subsidies. There is no reason why a new PawSox stadium would be any different.”
Rhode Island Republican Party | 1800 Post Rd, Ste 17-I | (401) 732-8282 |