The conversation about a new Major League Baseball stadium in the Raleigh area has resurfaced, with some legislative leaders eyeing public dollars to make it happen. While the city’s love for professional sports is evident, the proposal sits at odds with a growing body of research that questions the promised economic upside.
The Economics of Sports Venues
Just a few weeks ago, roughly 180,000 fans turned out in Raleigh to celebrate the Carolina Hurricanes’ Stanley Cup triumph, underscoring the region’s passion for live sports. That same enthusiasm is now being leveraged to argue for a new ballpark that would host an MLB franchise, a move that would cost at least $4 billion to secure and construct.
Economists have repeatedly shown that stadiums do not generate net new economic activity; they merely shift spending from other local businesses. A 2023 policy review by JC Bradbury of Kennesaw State University concluded that such venues concentrate existing dollars rather than create fresh wealth, a finding echoed by studies from the Tax Foundation and the John Locke Foundation.
The financial stakes are steep. State and local governments across the United States and Canada have already devoted $33 billion in public funds to major‑league stadiums and arenas between 1970 and 2020, with the median public share covering 73 percent of construction costs. Those investments often deliver modest returns, and the benefits accrue disproportionately to a small group of owners and season ticket holders.
For most North Carolinians, a new baseball stadium would not translate into more disposable income or broader prosperity. Instead, taxpayers would shoulder a sizable portion of the bill while the anticipated spillover effects remain largely theoretical.
Lawmakers would be better served by focusing on core budget responsibilities and allowing private investors to shoulder the risk of a stadium project, should Raleigh truly prove to be a major‑league market.