Raiders' $2B Stadium Signals Strong Demand for Sports Venues.

Dive Brief:

Dive Insight:

The sports venue construction sector almost met a crippling blow last year when it looked like Congress might eliminate the ability for teams to finance projects using tax-exempt bonds. The final spending bill passed this year retained that option to the relief of cities and teams alike.

The financing mechanism is a critical tool that helps state and local governments draw and retain major sports franchises by being able to help them pay for their construction projects. In fact, the massive local contribution to the Raiders’ new stadium was a non-negotiable condition of the team’s relocation to Las Vegas.

Axios reported in November that public agencies have taken advantage of $13 billion in tax-exempt bond financing for sports venues since 2000. But the benefits don’t seem to have made their way to the federal government, which is certainly one of the reasons the House tried to do away with that option last year. According to the Brookings Institution, the federal government lost $3.2 billion in tax revenue from 2000 to 2014 on 36 sports-related projects using tax-exempt funding.

Construction Dive

by Kim Slowey

April 19, 2018



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