NFL’s ‘Bills Mafia’ tipped to finance new stadium with municipal debt

(Bloomberg) — The Buffalo Bills’ most dedicated fans, known as the Bills Mafia, have been known to lend the team a hand, shoveling snow from the NFL franchise’s stadium before a playoff game earlier this year. Now, the enthusiasts will get a chance to buy bonds that will help finance the team’s new $1.7 billion stadium.

The Erie County Auditor’s Office plans to open a window for retail investors and Buffalo Bills fans to purchase a portion of the $110 million municipal bond on Sept. 23, a day before the debt becomes available to institutional investors.

The bonds will help finance the county’s $250 million pledge to build a new stadium for the Bills. The county will split its obligation between cash on hand and proceeds from an upcoming bond sale.

“It’s an investment opportunity with an attitude,” said Kevin Hardwick, Erie County Comptroller. “Bills fans can point to the stadium and tell their grandchildren they helped the county fund its share of that.”

A retail order period is common for issuers in high-tax states like New York, and Erie County has historically prioritized individual investors. This will be the first and only public debt offering for the Bills’ new stadium, Hardwick said.

The offering will come about a week after the next meeting of the Federal Open Market Committee — a division of the Federal Reserve responsible for setting monetary policy — where they are expected to cut interest rates. Hardwick said the county delayed issuing this debt as long as possible so they could take advantage of the cut.

“Like everyone else, we hope the Federal Reserve cuts the federal funds rate,” he added.

The bonds, informally called “Bills Bonds” by Erie County Administrator Mark Poloncarz, are rated AA by S&P and Kroll and the minimum amount that can be purchased is $5,000.

In addition to Erie County’s share of the funding, the New York State Assembly has approved $600 million. More than $400 million of that money will come from a settlement reached between Senaca Nation and New York after a dispute over gambling revenue, and about $180 million will come from the capital projects portion of the state budget.

Critics of the Bills deal have blasted Gov. Kathy Hochul for diverting money that could have been spent on more pressing issues. Economists who have studied public sports funding have found that the impact of new stadiums on local economies is generally small.

The new 60,000-seat stadium will feature improved amenities and facilities, and a canopy covering 65% of the seats, protecting visitors from bad weather.

–With assistance from Amanda Albright.

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