The Denver Gazette sports business insider is a reader’s guide to understanding the influence of money, politics and power behind their favorite leagues, teams and players.

Sports business insider: Economists debate whether taxpayer-funded sports venues — like the proposed $70-million Denver National Women’s Soccer League (NWSL) stadium — are worth the public investment.

Short version: Denver City Council approved an intergovernmental agreement (IGA) Monday in an 11-1 vote, providing framework for a NWSL stadium constructed at Santa Fe Yards with a price tag of $70 million to taxpayers.

The IGA doesn’t obligate city funding. But the council is expected to vote, possibly in November, on the final cost to bring a 14,500-seat stadium and entertainment district to the area along Interstate 25 and Broadway Avenue.

Most of Denver NWSL’s funding request will come from the city’s capital improvement fund — which is funded by property taxes. The proposed $70 million will be put toward land acquisition and improvements. Denver NWSL ownership is expected to pay for stadium construction.

City economists published a 19-page economic impact study last month. It estimated the creation of more than 1,000 jobs from the stadium and entertainment district with an economic output of $2.2 billion over a 30-year timeframe. But opinions are split on if similar projects are worth the public investment.

The Tax Foundation, a tax policy nonprofit, last year published a report titled: Taxpayers Shoulder a Heavy Burden for Sports Stadium Subsidies. The nonpartisan group said that “empirical evidence shows repeatedly that stadium subsidies fail to generate new tax revenue and new jobs or attract new businesses” and “those subsidies shift spending that would have occurred in other parts of the city or state.”

Long version: Many U.S. cities have elected to use public funds to subsidize the cost of professional sports stadiums across the nation. Notable examples:

• Wisconsin Gov. Tony Evers signed off on $500 million of taxpayer money for stadium renovations at the Milwaukee Brewers ballpark.

• Oklahoma City voters approved a 1% sales tax over six years to help fund a new Thunder basketball arena that will cost at least $900 million.

• The Nashville Metro Council committed to using at least $1.26 billion in public funds to subsidize a new domed Tennessee Titans football stadium set to open in 2028.

The rise in taxpayer-funded sports stadiums reflects a competitive professional sports market. Cities unwilling to subsidize new construction or upgrades risk losing their team. Just ask sports fans living in the Bay Area.

Oakland lost the Raiders to Las Vegas in 2020. The Athletics are next in 2028. They will combined receive more than $1.1 billion in public funding for their new stadiums in Nevada.

J.C. Bradbury, an economics professor at Kennesaw State University, told the Associated Press: “When you ask economists should we fund sports stadiums, they can’t say ‘no’ fast enough. Yet when you ask a politician, they can’t say ‘yes’ fast enough.”

Key context: It’s difficult to put a price tag on the cultural significance of Denver NWSL. It marks a new era of Colorado women’s professional sports. The team reported 10,000 season ticket deposits in less than two months.

Denver NWSL’s ownership group paid an expansion fee of $110 million to become the league’s 16th member in 2026. They are expected to spend another $150 to $200 million constructing a new stadium.

Why should taxpayers be on the hook for an additional $70 million?

At-large Councilmember Sara Parady cast the sole “no” vote Monday, citing concerns with the city’s shrinking budget and a backlog of capital improvement projects. Parady said: “We’d be investing in a large parcel that we wouldn’t otherwise be buying just to assist a private ownership group to have a place to build a private stadium.”

What’s next: Denver NWSL begins its inaugural season in 2026 playing at a temporary stadium in Centennial.