Construction of the Buffalo Bills’ new stadium has encountered significant financial hurdles, with insiders revealing cost overruns nearing $300 million.
Initially estimated at $1.4 billion in March 2022, the projected expenses have surged to around $1.7 billion, according to sources who spoke to The Associated Press under anonymity.
As per the preliminary agreement made 16 months ago with Erie County and the state, the Bills are obliged to shoulder any costs exceeding the first projected amount.
The uptick has been attributed to rising labor and material costs, with one particular expense already surpassing its budget by $75 million. Delays in the bidding process further compounded the situation.
The substantial increase would demand the Bills, who initially pledged $550 million towards the construction, to nearly match the taxpayer’s contribution of $850 million. They accepted the responsibility of these cost overruns to gain complete control over the stadium’s design and construction.
The team’s contributions will be sourced from the NFL’s G4 loan program, and the remaining will be raised through a novel seat licensing fee for season-ticket holders. Amid these fiscal challenges, Terry Pegula, co-owner of both the Bills and the NHL’s Buffalo Sabres, is set to negotiate with the city concerning critical renovations for the Sabres’ KeyBank Center, which hasn’t seen significant updates since its 1996 opening.
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