(Buffalo) The Buffalo Bills are getting closer to securing a US$200 million loan from the NFL to support financing for a new stadium, with most of the US$1.354 billion bill expected to be borne by the taxpayers.
Posted on March 25
According to what a source familiar with the matter revealed to The Associated Press on Friday, the NFL’s stadium and finance committee supported the Bills’ request for a loan called “G4” and would have recommended that the file be submitted to the owners’ meeting for final approval. This source spoke on condition of anonymity because this decision was made in private.
This committee approval was expected and it will now require the Bills to secure the support of 24 of the 32 owners for the loan to be officially approved. The vote is expected to take place on Monday.
According to the rules governing the G4 program, the owners of the Bills, Terry and Kim Pegula, must invest the same amount as the sum borrowed, which would raise the share of private financing in the project to a minimum of 400 million US.
The first stage of committee approval marks the start of a critical week for the future of the stadium project as New York State Governor Kathy Hochul nears the 1is April to agree with the team to include his government’s share of funding in his next budget.
Hochul has previously said she’s confident she’ll come to an agreement with Bills management in time. Even though it has already submitted a budget of 216 billion in January, Hochul said there are many options available to it to free up the necessary funds for the project.
Although the parties involved, including Erie County, have moved closer to a deal over the past month, it’s still unclear how much public funding will be needed to secure the Bills’ long-term future. . The small-market team is the only one truly based in New York State.
Taxpayers are expected to pick up more than 60% of the construction site bill, even though Hochul and Erie County Chief Executive Mark Poloncarz deny allegations that a billion dollars in public funds will be demanded .
The contribution of 200 million US from the NFL was already included in the financial package planned for the erection of this future stadium of some 60,000 seats on land located just opposite the current home of the Bills at Orchard Park.
The G4 program works in the form of a loan reimbursed mainly by the rental of seats by visiting teams.
As for the Pegula couple’s share, owners could turn in part to season ticket holders who could be required to pay an additional license fee for their seat for the first time. A measure that could potentially double the annual price of their ticket.
The Bills are looking to replace their current home, which was built in 1973 and the cost of renovations are believed to be too high. A study published by the State last November puts the work at 862 million US.
If funding is approved, the new stadium could be built in time for the start of the 2026 season.
The Bills’ current lease is valid until July 2023.
