Public-private partnerships, professional sports teams, and the protection of the public's interests

Across the past 15 years, governments have invested more than $10 billion in the playing facilities used by professional sports teams to produce a set of tangible and intangible benefits. Too often, after making substantial commitments communities receive new demands for increased subsidies. If these increasing demands are not satisfied, teams frequently move to other cities. Taxpayers and sports fans are then left with unused facilities, debt obligations and a reduced quality of life. If the public sector devotes tax revenues to generate intangible benefits and increased business activity in certain locations, communities are entitled to adequate safeguards to prefect their investment. Various governments have attempted to use different leasehold provisions to protect their stake in the partnerships developed with reams. These tools and their inadequacies are reviewed. It is then argued that the use of the power of eminent domain is needed to protect the public's interests.