The NFL is "pushing back against a provision in the Republican tax bill that would get rid of tax breaks for cities and states that borrow money to fund stadiums for sports teams," according to Andrew Beaton of the WALL STREET JOURNAL. The league’s opposition is the latest in a "series of political clashes this football season, including a feud with the White House over player protests during the national anthem." NFL Exec VP/Communications Joe Lockhart said, "We believe that the construction of new stadiums and renovations of stadiums are economic drivers in local communities. If the idea is to promote economic growth, this would be a step backwards." Beaton noted public funding of sports stadiums, and a tax exemption on municipal bonds that often "underpin such deals, has come under fire from members of both parties," including President Trump, in recent years. According to the Brookings report, subsidies for NFL stadiums cost $1.1B, and that study "didn’t include" Mercedes-Benz Stadium. That was in part financed by about $200M of "public bonds." These bonds are a "linchpin of the planned stadium" for the Raiders when they move to Las Vegas in the coming years. The funding for that project includes $750M in "public backing." Beaton notes MLB and the NBA "did not immediately respond to requests for comment" (WSJ.com, 11/2).
COSTLY CAVS? In Cleveland, Stephen Koff notes the Republican tax bill could have "pushed up the cost of extensive renovations at Quicken Loans Arena by millions of dollars." According to data from Moody's Investor Services, of the project's $140M cost, $35.27M is being "financed through the sale of tax-free bonds sold through the county." The bonds will be "paid off with taxes from the city and county and payments" from the Cavaliers. However, Stifel, Nicolaus & Company financial adviser Timothy Offtermatt said that by "completing the financing round Oct. 18, this will not be a problem" (Cleveland PLAIN DEALER, 11/3).
