Organizations such as the NFL forbid it, only the Green Bay Packers are grandfathered in as an exception. Owners are encouraged to threaten moves. Collective action is needed to undo the race to the bottom.
No collective action is needed. They can just refuse to fund the stadium if they can't get a good deal for themselves on it. But maybe the people living there really want the stadium despite the risks, so in that case it's fine. They're getting what they want.