Cato Institute
Policy Analysis
<<  <  >  >>
their wages in common stock. C.
stayed until 1995, when they left in one of the
Smythe, Ltd. also provided the sand for
most controversial moves in sports history.
construction of the Gardens.20
Cleveland's foray into the stadium business
was less than auspicious. Nonetheless, states
The Era of Subsidies
and cities across the nation followed. The next
Government's original involvement in
government major-league stadium ventures
large-scale stadium projects quite literally
involved Milwaukee and Baltimore, the two
began with Olympian efforts. Los Angeles
cities that lit the stadium-hopping, city-hop-
built the Los Angeles Coliseum in a failed
ping fuse that continues to burn brightly
attempt to get the 1924 Olympics. The city did
today, almost a half-century later. Milwaukee's
snag the 1932 Olympic Games over Cleveland
County Stadium was the first publicly funded
and Chicago, which had built Municipal
ballpark specifically built for a major league
Stadium and Soldier Field, respectively.21 The
baseball team. Taxpayer dollars had already
Los Angeles Coliseum was completed in 1923
found their way into minor league facilities.
at a cost of $954,87322 and was refurbished for
Meanwhile, a team with the deepest of
an added $951,000 in 1931.23 Los Angeles,
community roots got its own piece of the pie.
however, got off relatively cheap: Municipal
In 1957, football's vaunted Green Bay Packers
Stadium cost almost $3 million in 1931;24
moved into now-legendary Lambeau Field,
Soldier Field, which opened in 1929, $7.9 mil-
after playing in the 25,000-seat City Stadium
lion.25
since 1925. Lambeau Field was a city venture
In terms of major league sports teams, the
costing $969,000.30 During the 1980s and
subsidies or welfare game began with
1990s, Green Bay put $40 million into up-
Cleveland's Municipal Stadium. "The Mistake
grades such as sky boxes, club seats, and score-
by the Lake," as it later became known, was the
boards.31
brainchild of Republican city manager
The battle among the cities next arrived in
the then-indisputable capital of baseball--
William R. Hopkins.26 In 1928, the city council
voted 23 to 1 in favor of placing a $2.5 million
New York City. From 1947 through 1957, at
bond issue on the November ballot. The lone
least one New York team appeared in the
dissenter, Democrat F. W. Walz, presciently
World Series, and in seven World Series both
warned: "Of course, they say the stadium will
teams were from New York. After the 1957
pay for itself, but we've heard that story before.
season, however, the New York Giants fled to
It's high time we called a halt to this."27 As
San Francisco and the Brooklyn Dodgers to
Los Angeles.
would happen time and time again in coming
Robert F. Wagner,
Democrat Robert F. Wagner, then mayor of
decades, the city's elite offered strong support
and promised the world--and the voters said
New York City, declared in September 1957:
then mayor of
"If we began to subsidize baseball teams, all
"yes."28
New York City,
sorts of business enterprises would demand
The Olympics, as noted, landed elsewhere,
the same things. Our feeling is that profes-
but the Cleveland Indians arrived on July 31,
declared in
sional ball clubs class as private enterprise.
1932. After the 1933 season, however, the team
September 1957:
They have to carry their own weight. We will
wound up splitting their home games between
"If we began to
not be blackjacked."32 Years later, he observed:
the cavernous Municipal Stadium and the
intimate League Park, which had been their
"The idea of municipalities building stadiums
subsidize baseball
home since 1901. Quite simply, the team-
or helping in the building of stadiums was not
teams, all sorts of
owned League Park offered a chance for the
really politically possible in New York City in
financially strapped Indians to save on rent.29
1957."33 In just a few short years it surely would
business enter-
be, but in the meantime both the Giants and
It was not until 1947 that the Indians finally
prises would
Dodgers looked to California.
agreed to play all games in "The Mistake by
demand the same
The Giants cashed in big time in terms of
the Lake." The NFL's Browns took up resi-
taxpayer subsidies. The city of San Francisco
dence in Municipal Stadium in 1946. They
things."
4