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Behind closed doors, some of our state politicians are busy negotiating to force Arizona taxpayers to fork over up to $1 billion of our hard-earned taxes. This would redirect public resources to subsidize a lucrative private sports franchise and its billionaire owner — and that raises more questions than answers.
Why do billionaires deserve handouts?
Arizona Diamondbacks team owner Ken Kendrick is rich enough to build several stadiums without any taxpayer handout. The team is valued at $1.6 billion, having appreciated almost sevenfold since he bought it in 2004. As one economist says, “The harsh reality for even the biggest sports fan is that arena subsidies are a terrible use of finite government resources and a ridiculously egregious redistribution of wealth from regular Americans to some of the wealthiest people and organizations on the planet.” These are simply not people and organizations that need taxpayer help.
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How would lawmakers justify the cost to taxpayers?
The entire premise of this idea is that it only takes public tax resources from people who use the stadium. But that is simply false. With the stadium giveaway lawmakers are considering, the State of Arizona, Maricopa County and the City of Phoenix would all lose tax dollars that currently help pay for things like schools and public safety. State and local budgets are already strained due to the spiraling cost of Arizona’s massive tax cuts and out-of-control universal vouchers. Faced with dwindling state-shared revenues, the City of Phoenix was recently forced to raise its sales tax to avoid cuts to police, fire and libraries.
Where would the money come from?
Combined Arizona state, county and city sales taxes are already among the highest in the country. Our burden ranks 11th nationwide, and it’s rising. Arizona also ranks 8th lowest in the country for investment per capita, meaning our needs are vast. Finding extra public revenue to prop up the billionaire owner of a lucrative franchise means either allowing that vast list of needs to accumulate as Arizonans go without, or tapping into taxpayers’ pockets in the form of tax increases.
Are stadium subsidies a good investment?
Evidence from a wide swath of economists shows that arena giveaways are a drain, not a boon. More than three decades of studies have found stadiums to be consistent money pits, unjustified as worthwhile public investments, because the promised financial benefits fail to materialize. Proponents argue that “if the Diamondbacks are not playing at Chase Field, there is no revenue generated at all” — but this economic fallacy ignores the fact that most spending at a stadium is a substitute for other local recreational spending. We’re simply shuffling the economic deck chairs by pulling commerce from elsewhere nearby. Our taxpayer dollars could be diverted to luxury amenities or to tax-exempt hotels, restaurants, bars and retail, with little hope of public benefit. Why should taxpayers subsidize luxury amenities and tax-exempt private pockets? How would proponents of a stadium giveaway ensure taxpayer accountability and prevent misuse of public resources?
What about the lawsuit settlement?
In 2017, just 19 years after taxpayers paid more than $250 million to help build the ballpark, team owner Ken Kendrick sued Maricopa County for refusing to pay $187 million for renovations. He eventually agreed to take proceeds from stadium maintenance and event bookings to pay for his desired upgrades, an agreement intended to protect taxpayers. That lawsuit settlement explicitly released the county from further financial obligation. Now, the team has come to the state Capitol with both hands out, asking for even more taxpayer money. Did the team’s management fail to adequately budget for expected renovations, and if so, why should taxpayers step in to save them from their lack of financial planning?
Where else would the team go?
A frequently heard argument is that we have to pay up or the team will punish us by decamping for a more lucrative pasture. But where is that, exactly? With five million residents, Phoenix is the 10th largest metro area in the nation. All comparably sized markets in the United States already have their own teams. The team would have to relocate to Montreal or Mexico City to avoid downgrading. The current 30-team league also has two expansion teams shopping for a location, further complicating any move. Perhaps this is why, at a recent closed-door meeting, a team rep “insinuated (threatened)” that Major League Baseball would pull spring training from Arizona — relocating the 15 teams that call the Cactus League their spring home — if lawmakers don’t use tax money to pay for the stadium upgrades.
Can you say “quid pro quo”?
There’s a glaring potential conflict of interest here, too. Kendrick and his wife, Randy, are key political donors who spent nearly $1 million in 2024 to influence control of the Arizona Legislature, including funding independent expenditures to support Jeff Weninger (R-Chandler) and directly oppose his opponent. Just months after his win, Weninger sponsored the Diamondbacks’ stadium funding bill and advanced it through the committee he chairs. This looks for all the world like “pay to play,” which raises eyebrows — and serious ethical concerns.
What else could we do with $1 billion?
Stadium subsidies impose an invisible burden on taxpayers in the form of forgone public services like police and fire services, parks, schools, libraries, roads and public transit. The opportunity costs of these missed expenditures are critically important to our communities. Why hand that money over to a billionaire-owned pro sports team?
What if lawmakers chose to put this to voters?
Asking taxpayers whether we want to subsidize a multi-billion-dollar private corporation and its billionaire owner instead of forcing the giveaway down our throats behind closed doors would probably produce a decisive answer — and that’s why the team and legislators don’t want to go to the ballot. Voters across the nation have clearly shown they don’t like stadium giveaways. In the last two years alone, voters have axed a Virginia subsidy amid fierce public opposition, vetoed a stadium handout in Kansas City, and decisively rejected a taxpayer-financed arena right here at home.
Arizonans deserve good tax policy that benefits the entire state, not just the wealthy, and embraces the spirit of public benefit. We encourage Gov. Hobbs and state lawmakers to consider all the above questions before making a decision that will weigh on taxpayers for decades to come.
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