When it comes to NFL stadium construction, there are two basic truths. One, teams rarely will pay for the facilities by themselves. Two, the final price is always higher than the estimated price.
In Buffalo, the initial number of $1.4 million has spiked, via Ben Fischer of Sports Business Journal, to $2.2 billion. And because the team agreed to be responsible for all overages as part of the deal that devotes significant public money to the cause, the Bills are on the hook for the extra $800 million. Plus whatever else is added to it.
As a result, Fischer reports that the Bills seek an exception to the NFL’s debt limit, so that another $650 million can be borrowed.
The original plan included $200 million in debt for the team. The Bills contributed $275 million in cash, and the new stadium will raise a projected $225 million in personal seat license sales. The state and county are kicking in $850 million.
With the extra charges, the Bills are now paying $1.3 billion.
Owner Terry Pegula sold 20.6 percent of the team in December at an estimated valuation of $5 billion. That’s more than $1 billion for Pegula.
NFL owners are expected to consider the request at the annual meetings later this month.
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