The Stadium Scam: How Taxpayers Get Ripped Off by Sports Owners

The new Highmark Stadium in Buffalo, home of the Bills, is a prime example of how sports owners are using public funds to build luxurious venues that cater to the wealthy few. With 60,108 seats – down from the old stadium’s 71,608 – it will be the smallest NFL venue when it opens this September. The $850 million in public funds used to finance its construction translates to 11,500 fewer seats and personal seat licenses (PSLs) that can cost up to $50,000 per seat.

This is not an isolated incident; it’s a disturbing pattern repeated across American sports. Between 1970 and 2020, state and local governments spent a staggering $33 billion in public funds on major-league sports arenas. The median public contribution covered 73% of construction costs, with some teams receiving as much as 90% in taxpayer subsidies.

Teams often justify high ticket prices by arguing that they must reflect market rates. However, individual teams don’t have to share revenue from premium seats and luxury boxes with the rest of their league, creating a perverse incentive for owners to rip out cheap seats and build suites that extract maximum value from fans with deep pockets.

The results are striking: average NFL ticket prices nearly tripled between 2015 and 2025, up 173% after adjusting for inflation. The new Chiefs stadium is expected to have roughly 15% fewer seats than Arrowhead, a trend repeated across the NFL, NBA, and MLB. Victor Matheson, an economics professor at the College of the Holy Cross, noted that “the money is in super premium experiences, not in actually putting people in the seats.”

But what’s even more insidious is that these cities are essentially throwing money into the void because teams and stadium owners were always going to pick them. Buffalo was never realistically going to lose the Bills; the $850 million was, in effect, a ransom paid to prevent a departure that was never truly on the table.

This auction-like play has been repeated with data centers, where states offer hundreds of millions in tax breaks to attract companies. Economists say these cities already have structural advantages that make them attractive to companies; the tax incentives are simply a form of extortion, where cities pay companies not to leave.

The consequences of this stadium scam are far-reaching. Not only do taxpayers foot the bill for luxurious venues, but they also get priced out of attending games themselves. As Matheson noted, “No one has ever built a new stadium and provided more affordable tickets after that new stadium has opened.” It’s a stark reminder that sports owners prioritize profit over people, and it’s time for taxpayers to wake up to this reality.

The Buffalo Bills’ new stadium may be the smallest in the NFL, but its impact is enormous. It serves as a microcosm of a broader problem: how public funds are being used to prop up private interests at the expense of taxpayers. As we continue to pour billions into stadiums and arenas, it’s essential that we ask ourselves: what does this mean for our communities? What does it say about our values as a society when we prioritize luxury over accessibility?