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Josh Allen, #17 of the Buffalo Bills, is seen warming up before an NFL matchup against the Miami Dolphins at Hard Rock Stadium in Miami Gardens, Florida, on September 12, 2024.
Next week’s “Monday Night Football” will be far from a typical game day for fans of the Buffalo Bills.
Before the Bills face off against the Jacksonville Jaguars, a unique opportunity will arise for retail investors to purchase municipal bonds aimed at financing the construction of the team’s new stadium, which is set to open in 2026. This initiative, as highlighted on the team’s official website, allows Bills enthusiasts to feel a sense of ownership in the new venue being built in Orchard Park, located just outside Buffalo.
Importantly, these bonds are not being sold directly by the Bills. Instead, Erie County, the home of Buffalo, is offering the bonds to raise funds for half of the $250 million commitment it has made towards the stadium project.
Erie County Comptroller Kevin Hardwick emphasized the significance of this retail bond offering in a recent telephone interview. “I wanted to make sure that this retail period, which is kind of novel, is available for the average Buffalo Bills fan who has been a loyal supporter, enduring both the hardships of the cold winter games and the emotional ups and downs of the team,” he noted. “They ought to have a chance to help us pay for our share of the construction cost of the new stadium,” he added.
The retail investment opportunity is set for one day only on Monday, after which institutional investors will have their turn starting on Tuesday. Purchasers of the double A-rated bonds must go through a broker, with a minimum investment of $5,000 required, according to the bond offering portal.
The exact interest rate for the bonds won’t be finalized until after the offering period ends. Hardwick indicated that the county is leaning toward a 25-year maturity for the bonds, although he warned that this could change prior to Monday.
The Buffalo Bills are currently valued at $5.35 billion, ranking them 30th on CNBC’s Official NFL Team Valuations list. However, the construction of a new stadium, along with the accompanying sponsorship opportunities, has the potential to significantly enhance the team’s overall value.
It is not uncommon for local communities to financially contribute to the operations of NFL teams. For example, the county where the Kansas City Chiefs are based levies a sales tax that supports the team, and taxpayer funds frequently play a role in financing new stadium constructions.
In total, the state of New York and Erie County have agreed to contribute $850 million towards the stadium, which comes with a total price tag of $1.4 billion. The remaining costs will be borne by the Buffalo Bills organization. Upon completion, the new stadium will be owned by the Erie County Stadium Corporation, while the Bills will lease the facility.
The Bills are currently enjoying a strong start to their season, boasting a 2-0 record as they prepare to contend with the Jaguars, who are still searching for their first win of the season on Monday night.
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