Soft budget constraints in french football through public financing of stadiums

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SUMMARY

    The article contributes to the literature on SBCs in sports by examining the extent to which financial support from local government for stadium construction or renovation induces SBCs for professional sports clubs. Before 2022, only four instruments were observed in the case of Bordeaux: (i) Local government finances the construction or renovation of the new stadium; (ii) local government finances the stadium`s access infrastructure; (iii) tax relief for the stadium constructor; (iv) stadium rental fees undervalued in relation to actual price. Specifically, the authors found that 78% of stadium financing was public and . . .

     

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