Patriots and CT officials "conceded" yesterday that
"there would be huge shortfalls" in paying the payments
associated with the state's $350M financing of a new stadium
project, according to Tina Cassidy in a BOSTON GLOBE front-
page report. Originally, the deal was to be repaid via new
payroll taxes and "increased ticket prices," as CT's annual
interest payments on the bonds issued to finance the stadium
would "total" about $25M a year for 30 years. But the
Patriots would "directly generate between" $12M and $15M in
income, sales and usage taxes in 2001, when the stadium is
scheduled to be completed. Team officials "estimate that
payroll and other taxes will increase" about 6% a year,
"eventually reaching the amount necessary to cover the debt
obligations." Components missing from the revenue estimates
include non-Patriots related events, where revenue would go
to the state (BOSTON GLOBE, 11/24). In Hartford, Swift &
Puleo report that the sales of luxury seats are "essential
in paying off" the debt on the project. If all luxury seats
are sold, CT "expects to earn up to" $4.2M in admission
taxes on premium seats alone in 2001. If it "fails," the
state "would be on the hook" for up to $17.5M in subsidies
to Patriots Owner Robert Kraft (HARTFORD COURANT, 11/24).
TAKING RISK? In N.Y., Richard Sandomir writes that a
"dangerous assumption" by CT is that the Patriots can market
6,000 club seats costing $5,000 each, higher than the league
average. MD Stadium Authority Chair John Moag: "That's just
way overpriced. It could be very significant exposure for
the government. It's a huge risk" (N.Y. TIMES, 11/24).
