• Loading stock data...
Friday, November 1, 2024
The Best Employers in Sports survey is open through Nov. 6 Learn More

Bonds Away

University of Phoenix Stadium
Photo Credit: Matt Kartozian-USA TODAY Sports

Cities that sold bonds to finance stadium construction may be in a perilous position while the games, concerts, and events meant to generate cash for payments remain on hold. Tourism taxes have been levied to pay for nearly 40% of $17 billion in public stadium financing since 2000, according to the Brooking Institution. Though the industry has halted, bills have not.

However, not all deals are the same in the $4 trillion U.S. municipal bond market, and results may vary:

  • Glendale, AZ (Cardinals, Coyotes, and Dodgers and White Sox Spring Training): 66% of public debt is tied to city’s sports facilities; $10.7 million payment due for Gila River Arena in 2020. 
  • Maryland Heights, MO (St. Louis Blues): Owes $3.6 million annually on Centene Community Ice Center. Bonds on it have fallen from 109 cents on the dollar in early March to 68 cents on May 21. 
  • Miami-Dade County, FL (Marlins): Owes $15.1 million this year on Marlins Park; has already collected nearly twice as much thanks in part to this February’s Super Bowl. 

No stadium bonds involved with major professional sports league have defaulted, but there have been other downward trends in the industry:

  • The Oakland A’s withheld a $1.2 million payment to Oakland Coliseum in April. 
  • Bonds for Mercedes-Benz Stadium, home of the Atlanta Falcons, have been lowered to negative outlook by S&P Global and placed on review for downgrade by Moody’s.
  • S&P also downgraded to negative bonds on the BB&T Center, home of the Florida Panthers. 

Stadiums sold as a steady cash source for cities have turned into a major strain on budgets already hurting from the pandemic, leading many to question the role of spending public money on pro sports facilities.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Adam Schefter

Adam Schefter Uses Same Pirated NFL Clips As Everyone Else

ESPN’s NFL insider posted a video from an illegal stream Thursday night.

Could Amazon Make Black Friday a Legitimate Sports Holiday?

Prime made waves by putting an NFL game on Black Friday. The NBA is on the way.

Inside Cosm’s Plans for a Fourth Location—and Beyond

The downtown Detroit site will add to the city’s sports and entertainment district.

Florida-Georgia Game Hits the Road Amid $1.4B Stadium Renovation

EverBank Stadium will have reduced capacity in 2026 and be closed in 2027.
podcast thumbnail mobile
Front Office Sports Today

Ripken on World Series, Team Ownership and Soto Pursuit

0:00

Featured Today

The Untapped Revenue ‘Powder Keg’ of Women’s NFL Fandom

There’s a “boatload” of money at stake for brands and the league.
Oct 19, 2024; Gainesville, Florida, USA; Florida Gators quarterback DJ Lagway (2) shakes hands while entering the locker room after a game against the Kentucky Wildcats at Ben Hill Griffin Stadium.
October 28, 2024

NIL Director Is the Trendy New Job in College Sports. But the Role Is Chaos

Athletic departments nationwide are hiring for what’s become their most important position.
FuboTV signage
opinion
October 26, 2024

Fubo’s Fight Against Streaming Giants Feels Futile

Fubo notched a legal win, but subs and stock still slump.
October 25, 2024

Inside The Wall at L.A. Clippers’ New $2B Home

FOS went inside the “contagious” energy at the L.A. Clippers’ Intuit Dome.
The stands at the Solheim Cup

LPGA Apologizes for Solheim Cup Fan Bus Debacle That Left Stands Half-Empty

The USA-Europe women’s team golf event teed off Friday morning.
October 3, 2022

Real Madrid President Renews Call for Super League

Real Madrid’s president believes that soccer is losing ground.
May 20, 2024

Top Sports Business Jobs This Week (May 2024)

Each week, our staff combs through the thousands of job listings from…
Sponsored

World Series Delivers High-Demand Marquee Matchup

The hype around the World Series matchup drove ticket prices to record levels—but the Dodgers’ dominance quickly quieted the fervor.
August 10, 2022

PGA Tour Touts Projected Earnings to Keep Players

The PGA Tour is asking its players to consider their potential futures.
August 10, 2022

Bayern Munich to Make Growth Push in U.S. Market

Bayern Munich is looking to expand its reach in the U.S.
Nintendo-logo
August 3, 2022

Nintendo Profits Underwhelm, Switch Sales Decline

Nintendo failed to meet expectations in the company’s latest earnings report.
manfred_at_microphone
August 19, 2021

MLB Owners Propose $100M Salary Floor

Major League Baseball owners have proposed a $100 million payroll minimum for MLB’s 30 teams and a lower luxury tax threshold.