This fact alone does not mean that there should be no public subsidization of new stadium construction. The voters, however, need to understand that they are voting for cultural, not economic, value. The voters are also entitled to make this election without the threat of extortion by the monopoly sports leagues. Economists have no difficulty identifying the source of this problem. With excess demand for teams, cities are thrust into competition with each other.
Economists also have no difficulty identifying the possible remedies.
There are two choices. Either create competition or regulate. The easiest way to create competition is to force league divestiture. That is, the league could be broken up into two competing business entities while being allowed to set common playing rules and post-season competition. If baseball had two competing leagues, the American League and the National League, it would be inconceivable that Washington, D.C. would go 27 years without a team.