Cost study for proposed MLS stadium in Nashville questioned
NASHVILLE (AP) - An economics professor has called into question an impact study used by Nashville in a pitch for a Major League Soccer stadium.
The Tennessean reports the study written by the University of Tennessee did not include a so-called substitution effect and failed to take into account that sales tax revenue redirected to pay off stadium debt could put a strain on city and state coffers.
Robert Baade, an economics professor at Lake Forest College in Chicago, says "it doesn't seem to be the kind of objective appraisal that the city would need to render a believable opinion on why they should spend public money subsidizing the stadium."
The Metro Nashville City Council approved a $275 million financing package for the new stadium last week.