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 Taxpayers in Hoffman Estates are seeing a significant portion
of their tax dollars subsidize Sears Centre Arena, a local entertainment venue
that suffers annual losses.
Sears Centre Arena is home to the Chicago Mustangs of the Major Arena Soccer
League and the Windy City Bulls of the NBA G League, as well as a variety of
entertainment events. The village assumed ownership of Sears Centre Arena in
December 2009, and has since spent $87.6 million operating the arena. The
village spends on the arena like it was a core service, with the Sears Centre
amounting to 13 percent of expenses – more than the village spent on highways
and streets – in 2017.
Hoffman Estates has spent more than $87 million on the Sears Centre since 2010
But the results have been poor, with the arena seeing an average annual loss of
$1.8 million since 2010, according to the village’s Comprehensive Annual
Financial Reports.
The village frequently covers the arena’s losses by transferring additional
money from its general fund into the Sears Centre Operating Fund. The arena has
received more than $10 million in transfers from the village alone since 2010.
Whereas a privately funded arena would be forced to turn a profit at some point,
village officials continually tap taxpayers to make up for the arena’s
shortcomings.
Taxpayers subsidize Sears Centre Arena losses
Net income projections for the arena found in the village’s annual budgets have
been consistently out of touch with reality. Since 2010, annual projections have
overestimated the arena’s net income by $1.7 million on average.
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Amid growing pension obligations and cuts to state
assistance, Hoffman Estates residents have seen an increase in the
village’s property tax levy. In Cook County, where Hoffman Estates
is located, total property taxes billed this year increased by 5
percent.
Too many Illinois taxpayers find themselves
shouldering the costs of ill-advised sports stadium ventures.
Illinoisans are still on the hook for debts incurred by Guaranteed
Rate Field, home to the Chicago White Sox, and the construction of
Wintrust Arena, home to the WNBA’s Chicago Sky and DePaul
University’s basketball teams. Despite having received millions in
taxpayer subsidies, both arenas have seen disappointing attendance
trends.
Crestwood, Joliet and Schaumburg have publicly financed stadiums for
independent-league baseball teams, each of which has endured
underwhelming attendance trends. More recently, in 2017, the village
of Rosemont approved the construction of Impact Field, home to the
independent Chicago Dogs. The field was financed using funds from
the village’s eighth tax increment financing district.
Taxpayers in the state capital are seeing their tax dollars fund the
Bank of Springfield Center, another unprofitable arena.
Illinoisans shoulder one of the heaviest tax burdens in the nation.
Putting an end to publicly funded entertainment venues would help
ease residents’ tax burdens and reserve hard-earned tax dollars for
core services. Hoffman Estates, as well as other municipalities
subsidizing unprofitable arenas, would be better off leaving the
sports and entertainment business to private hands.
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