03-14-2006, 02:35 PM #1Prophet Guest
Chiefs counting on aid from NFL-interest free $
I'm sure the Vikings are looking into this interest-free loan possibility for their new stadium. Wilf tosses a billion dollars into the mix, 34% of the building costs can be in the form of an interest-free loan from the NFL and the MN folks come up with the rest. Sounds like a win-win-win situation to me.
Chiefs counting on aid from NFL
Team will seek at least $34M for its share of stadium costs
By Mark Kind
Kansas City Business Journal
Updated: 7:00 p.m. ET March 12, 2006
While promising to pay at least $100 million toward roofing and renovating Arrowhead Stadium, the Chiefs have planned to obtain a no-interest, no-payment NFL loan for at least $34 million of the commitment.
"We've been paying into that program. ... Why wouldn't we use it?" team Vice Chairman Jack Steadman said.
Since 1999, the NFL's G3 loan program has allowed teams to apply for stadium-construction loans [size=18px]covering as much as 34 percent of building costs[/size], Steadman said. Visiting teams repay the loans from their game-day revenue.
That revenue is shared with NFL players, and the loan program could change or disappear after team owners' labor negotiations with the NFL Players Association, league spokesman John Zimmer said.
"There's a concern about it, but we remain optimistic that it will continue," Steadman said.
Jackson County will ask voters on April 4 to approve an estimated $850 million in sales taxes during 25 years to finance $425 million in renovations to Kauffman and Arrowhead stadiums.
A second ballot question will ask for a tax on products used inside Jackson County but bought outside Missouri.
This use tax would pay for $170 million of an estimated $200 million tab to build a rolling roof for the stadiums.
Stadium tax opponent Terrance Nash said the NFL's money should defray the public's share of renovation costs rather than the Chiefs' expenses, which largely are devoted to expanding and renovating luxury seating.
"We should be taking care of the fans first," Nash said.
The Chiefs have committed $75 million toward Arrowhead renovation costs and $20 million to $30 million toward roof costs, Steadman said.
Besides seeking 34 percent of those costs, the team also wants the G3 program to pay 34 percent of any cost overruns on renovations, he said.
"That will be part of the financing," Steadman said. "Then we'll have to obtain long-term financing for the rest of our commitment."
The team won't apply for the money until it has accepted construction bids, he said.
"It has to be approved by the (NFL owners') finance committee, so there's no guarantee that we'll even get it," Steadman said.
In fact, the NFLPA also has sway and reportedly has held up a loan to the Dallas Cowboys.
Steadman said the Chiefs have helped finance other cities' stadiums through the program, losing the team's share of revenue from games played in new stadiums.
"We don't get that visiting team share," he said. "It goes to the league to pay off the debt."
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