Professional sports teams will sometimes seek public subsidies for stadium financing projects that produce large benefits for a relatively small number of fans and impose small costs on a relatively large number of people. Sometimes these efforts to secure public funding are successful even though the decision is not efficient. This is an example of

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The special-interest effect occurs when a small group benefits significantly at the expense of a larger group, often leading to policy decisions that are not efficient or in the broader public interest. In the context of public subsidies for stadium financing, a relatively small number of fans and team owners may benefit significantly, while the broader public bears the cost, exemplifying the special-interest effect.

Professional Sports Teams Will Sometimes Seek Public Subsidies for Stadium