There is currently an attempt where I live to convince the State Legislature to use public funds to help finance not 1, but 3 separate stadia (or stadiums for those without an inclination to ancient Greek). One of these is for a State funded educational institution - the other 2 are for local sports teams. Apparently, some of these attempts have been going on for 10 years.
This is no different than the use of eminent domain to transfer property from one private entity to another. In this case, it amounts to the transfer of tax dollars to subsidize a private institution from which the government receives no specific benefit. In other words, its not like a government agency purchasing something from a private company - in that case, the government receives valuable goods or services in exchange. In this case, what does the government receive in exchange for its investment? And is the value of those things received (if any) commensurate with the investment made? If, for example, the government were to be guaranteed payments that would repay the investment plus 10% interest over the life of the loan, I think it would be a pretty easy decision to make.
However, if it were that easy, there would be plenty of private investors lining up to finance the project. The fact that this process has gone on repeatedly for years suggests that either there is no compelling financial arguement for investing in stadia or that those trying to get the money have yet to adequately explain them. Either of these should ring alarm bells. First, it isn’t the government’s place to invest in private enterprise - particularly when favoring one organization. Second, if those who want something cannot adequately explain it, they aren’t likely to be able to use wisely any money they do get.
Wall Street has long known how to market investment opportunities to the masses. If this were a good investment, it could be packaged and sold as either an equity investment or bonds of some sort. The fact that it isn’t should be a warning that those who want the money realize that the only way they will ever get it is to feed at the public trough.
Politicians should be reticient to make investments that Wall Street won’t.