America's Sports Stadium Debt Racket

6/17/2010 9:07:14 PM

New Jersey officials recently celebrated the selection of the new stadium in the Meadowlands sports complex as the site of the 2014 Super Bowl. Absent from the festivities was any sense of the burden the complex has become for taxpayers.

Nearly 40 years ago the Garden State borrowed $302 million to begin constructing the Meadowlands. The goal was to pay off the bonds in 25 years. Although the project initially went according to plan, politicians couldn't resist continually refinancing the bonds, siphoning revenues from the complex into the state budget, and using the good credit rating of the New Jersey Sports and Exposition authority to borrow for other, unsuccessful building schemes.

Today, the authority that runs the Meadowlands is in hock for $830 million, which it can't pay back. The state, facing its own cavernous budget deficits, has had to assume interest paymentsâ€”about $100 million this year on bonds that still stretch for decades.

5 comments

Latest

CTQWERTY

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14 years ago

"... politicians couldn't resist continually refinancing the bonds ..." a bit skewed, Diva. I suspect politicians have had many a sweet something whispered into their ear over the years by investment banks mindful of the large pots of money elected officials sit atop of. And really, since it takes substantial sums to run, that all but excludes those unwilling to "play ball".

sinclair

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14 years ago

They need to quit tearing down stadiums and building new ones just for the hell of it. Look at Wrigley, Fenway...old as shit but still serve their purpose. Three Rivers should have never been torn down.

samsung1

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14 years ago

The politicians are spending money like PLs in a strip club

Dudester

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14 years ago

Adding to Sinclair, some places are hallowed ground. Cowboy's stadium, recently imploded, was very much hallowed ground, considering the legendary feats pulled off there-time and again.

A) Why do you destroy something functional?

B) Didn't it dawn on anyone in Dallas that considering the legendary feats of Roger "the Dodger" Staubach, and the Doomsday defense, that Dallas Stadium was hallowed ground?

The Houston Astrodome was considered "the eighth wonder of the world" because it was the original domed stadium. The dome has been vacant for a decade now because the football and baseball teams now play elsewhere.

Some people, including me, have been trying to save it. Houston's big trend is to tear down it's history. The dome didn't have anywhere near the amount of legendary feats that Dallas stadium did. I've always felt that it would be the ultimate concert venue as Houston is the most difficult city to see a rock concert in. People here don't understand the value of easy parking and non scalped tickets.

A decision will be made towards the end of the year. Either the dome will be imploded, or it will be turned into a Planetarium/movie studio/conference center. I hope for the latter.

mmdv26

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14 years ago

This lap dance is very boring, so I'm staying awake thinking about how Houston has probably hired crystal ball guys who predict how many people will go to the planetarium and how many movies will be filmed in a studio in Houston a thousand miles away from where the actors live. The conference center might have a reasonable return on investment if there aren't too many in Houston already. No tip for this chick!

The concert venue might be the best use. Add a $5 (or $2 or $3 or $7) per tik fee that would be earmarked for maintaining the AD. Hope you can keep the pols from skimming some off for every other purpose that shows up begging for money.

No thanks, I'd better take a break...LOL.

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