Texas cities compete for professional sports teams, hoping for economic boost

TEXAS — Texas cities are ramping up their efforts to attract professional sports franchises, betting big on the promise of economic growth, increased tourism and enhanced community pride. But some economists caution the financial returns might not live up to the hype.

From Dallas to San Antonio to Austin, local leaders are investing in sports infrastructure and teams in hopes of gaining a competitive edge. 

Dallas Mayor Eric Johnson has been outspoken about the importance of building up the city’s professional sports presence. 

The city recently welcomed the creation of a new men’s professional soccer team, wrapped up the inaugural season for a women’s professional soccer team and is preparing to move the WNBA’s Dallas Wings downtown by 2027.

“We know that this investment is going to deliver real economic returns for our city,” Johnson said.

In San Antonio, city officials are pushing for a new arena for the Spurs — a move they believe could inject new life into downtown and attract more visitors.

“The opportunity to have an arena downtown, within a district, really just adds more people coming downtown, more tourists,” said Lori Houston, San Antonio’s assistant city manager.

Meanwhile, Austin continues to ride the wave of popularity with the Longhorns, Major League Soccer’s Austin FC and more niche leagues like Professional Bull Riding and Ultimate Frisbee.

The broader aim goes beyond just sports victories. City officials see these investments as long-term plays for boosting job creation, tourism and civic pride. However, Southern Methodist University economics professor Michael Davis says the economic impact of professional sports teams is often overstated.

“There’s not an obvious positive economic impact to having a sports team in your city,” Davis said. “They’ve gotten (professional sports teams) into the habit of really bargaining hard for freebies — stadiums, tax relief.”

Davis adds that many cities end up offering hefty public subsidies to lure or retain teams, raising concerns about taxpayer dollars being used to support privately owned franchises.

Still, Davis acknowledges the entertainment value and intangible benefits of sports.

“I think it’s mostly because sports are fun,” he said.