Super Bowl Lands on Taxpayers’ Backs as Stadium Deal Turns Sour

This article addresses how the plans for the 63,000-seat Lucas Oil Stadium had to change due to the collapse of the auction-rate bond market that has led public officials in Indianapolis to restructure what grew to $666.5 million in public debt. (Read entire article here)

This unexpected change has prompted local officials to raise hotel, restaurant and rental car taxes, and make other payments on top of about $43 million in unexpected financing costs related to their sports and convention facilities.

Justin Ross, who teaches public finance at Indiana University said, "Super Bowls, like Olympics, don't seem to produce much economic benefit and probably have some significant cost." The net effect of hosting an NFL Super Bowl is marginal. When the the original plans for the stadium were unveiled almost a decade ago, taxpayers were promised that they would not have to pay a dime. But now they are forced to take on a much larger tax burden than expected. Although, the trade-off for paying these taxes is keeping a team that they love, the Colts, in their city.

Do the benefits of these taxes outweigh having to pay them? If Indianapolis pulls off a great Super Bowl this year would the potential of hosting future Super Bowls help cover the costs incurred by the stadium?