This paper investigates the impact of a new stadium on the finances of professional baseball teams and updates the empirical evidence through the 1990s. the data suggest that new stadiums continue to generate substantial short-term returns to team owners, partially explaining their insistence on public subsidies for new stadiums. Conclusions that the public returns to a new stadium are minimal likely reflect the ability of team owners to negotiate for the majority of the additional revenue generated by a new stadium. the additional profit to a team owner averaged in excess of seven million dollars during each of the first five years of a new baseball stadium.
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