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

Across the past 15 years, governments have invested more than $10 billion i n the playing facilities used by professional sports teams to produce a set of tangible and intangible benefits. Too often, after making substantial c ommitments communities receive new demands for increased subsidies. If thes e increasing demands are not satisfied, teams frequently move to other citi es. Taxpayers and sports fans are then left with unused facilities, debt ob ligations and a reduced quality of life. If the public sector devotes tax r evenues to generate intangible benefits and increased business activity in certain locations, communities are entitled to adequate safeguards to prefe ct their investment. Various governments have attempted to use different le asehold provisions to protect their stake in the partnerships developed wit h 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 publi c's interests.