Western New York is celebrating a major win as Governor Kathy Hochul and Erie County Executive Mark Poloncarz announced a landmark agreement to build a brand-new $1.4 billion stadium for the Buffalo Bills in Orchard Park. This deal, meticulously negotiated by Governor Hochul, ensures the Bills remain in Buffalo for the next 30 years and is underpinned by a significant financial framework involving state, county, and NFL contributions. Let’s break down the Money Bills that are making this project a reality and what it means for taxpayers and the region’s economy.
The financial structure of the new stadium project is a public-private partnership. The NFL and the Buffalo Bills themselves are contributing a combined $550 million, a substantial commitment approved by NFL owners. To further secure this project, Governor Hochul is proposing a $600 million investment from the state budget, while Erie County is set to contribute $250 million. This financial package reflects a strategic investment in a franchise that is a proven economic engine for the region.
The justification for this public investment lies in the substantial economic returns generated by the Buffalo Bills. The team currently brings in $27 million annually in direct income, sales, and use taxes for New York State, Erie County, and the City of Buffalo. Looking ahead, these revenues are projected to grow, accumulating to over $1.6 billion throughout the 30-year lease period. Beyond direct tax revenue, the Bills attract fans from across New York, the United States, and Canada, injecting an estimated $385 million annually into the local economy through tourism and related spending. This influx of money significantly outweighs the public share of the new stadium cost, promising a robust return on investment for taxpayers.
Terry and Kim Pegula, owners of the Buffalo Bills, expressed their gratitude and commitment, stating, “We took another step today to solidify our collective goal of constructing a new stadium for the Buffalo Bills in Orchard Park… While there are a few more yards to go before we cross the goal line, we feel our public-private partnership between New York State, Erie County led by County Executive Mark Poloncarz, and the National Football League will get us there.”
County Executive Mark Poloncarz emphasized the fairness of the deal for Erie County residents. “It was essential that we entered into an agreement that ensured the team stayed in Buffalo, but was also a fair deal for the people of Erie County and New York,” he stated. A key aspect of this fairness is the elimination of annual operating and capital expenses for the county, which will save Erie County taxpayers millions of dollars over the lease’s lifetime.
Notably, the current financial arrangement represents a reduced share of public financing compared to previous stadium projects. Historically, the construction of Highmark Stadium in 1973 was entirely publicly funded, as were the 1998 renovation and training facility construction. Even the 2013 renovation saw 73 percent public financing. In contrast, this new proposal involves just 60.7 percent public financing, significantly lower than other recent NFL stadium deals in comparable markets, with the State share at 43 percent. This shift demonstrates a more balanced financial approach, sharing the investment burden more equitably between public and private entities.
The 30-year agreement outlines the construction of a state-of-the-art stadium with a minimum of 60,000 seats. The Buffalo Bills will lead the design and construction, with immediate commencement of the design phase. Simultaneously, negotiations will begin to extend the team’s current lease for Highmark Stadium, which expires in 2023, ensuring a smooth transition to the new facility.
Beyond the financial and economic benefits, the stadium project is poised to create approximately 10,000 construction jobs, all utilizing union labor under a Project Labor Agreement (PLA). This commitment to union labor, negotiated with the Building and Construction Trades Council of Buffalo, New York and Vicinity, AFL-CIO, ensures fair wages and benefits for workers involved in the project. Furthermore, the Bills are committed to negotiating a Community Benefits Agreement, ensuring the project positively impacts the wider community.
Ownership of the current stadium and surrounding complex will be transferred to the State, and the State will also own the new stadium and complex, leasing it back to the Bills. This arrangement provides a mechanism for the State and County to enforce the non-relocation terms of the agreement, safeguarding the Bills’ presence in Buffalo. Importantly, the new stadium is designed to serve civic purposes, including potential use as a vaccination site, election operation center, or emergency response hub, further enhancing its value to the community beyond game days.
Gary LaBarbera, President of the New York State Building and Construction Trades Council, lauded the project for prioritizing union labor: “The new Bills Stadium will create 10,000 good paying union jobs, and after two difficult years of the pandemic, this public-private investment is exactly what’s needed for hard working families in Western New York.” Mario Cilento, President of the New York State AFL-CIO, echoed this sentiment, thanking Governor Hochul for securing the Bills’ future in Western New York and highlighting the long-term economic benefits and job creation for the region.
NFL Commissioner Roger Goodell praised the collaborative effort, stating, “We are pleased with the tremendous progress that has been made on a plan that will provide Bills fans the world-class facility they deserve in western New York… This new stadium will further provide the foundation to help the Bills remain competitive in western New York for decades to come.”
Hope Knight, Empire State Development Acting Commissioner and President & CEO-designate, emphasized the economic urgency of the deal: “The clock was ticking on Bills stadium talks with the future of the team and millions of dollars in revenue hanging in the balance — but like the best quarterbacks, Governor Hochul made the game-winning drive to keep the Bills in Buffalo.”
State and local leaders also voiced their strong support, recognizing the Buffalo Bills as integral to the spirit and economy of Western New York. State Senator Sean Ryan highlighted the project as a “once in a generation union labor project,” while State Senator Tim Kennedy emphasized the Bills’ role in fueling the local economy. Majority Leader Crystal Peoples-Stokes and Buffalo Mayor Byron Brown also offered congratulations, underscoring the widespread positive impact of this stadium deal.
In conclusion, the new Buffalo Bills stadium deal is a significant financial undertaking with substantial projected returns. The “money bills” involved represent a strategic public-private partnership designed to secure the Bills’ future in Buffalo, generate significant economic benefits and tax revenue for the region, create thousands of union jobs, and provide a valuable civic asset for the community. This investment demonstrates a commitment to Western New York’s economic vitality and the enduring legacy of the Buffalo Bills.
