When factoring in interest over 40 years, the new Marlins stadium will cost
as much as $2.4 billion
(Click to see in larger view)
While $409 million in bonds will be issued to pay primarily, but exclusively the cost for the new Marlins stadium construction, when accounting for interest over the 40 year life of the bonds, the final price tag will be a staggering $2.4 billion, according to the Miami Herald:
The total exceeds earlier estimates, which pegged final costs at $1.8 billion to $2 billion, according to papers released by the Wall Street firms underwriting the bonds. The new figures show that one $91 million bond offering alone will cost, with interest, more than $1 billion to repay. The bonds are backed by tourist-tax dollars, but if those numbers don't meet projections, the county can dip into the general fund.
The prime reasons for the rising figure: The county is paying higher interest rates than anticipated -- and is putting off huge pieces of the repayment until decades down the road. That means interest will compound year after year, raising the total.
The Marlins are kicking in $120 million, plus repayment of a $35 million county loan. But as reported, the club “doesn't have to pay until the final phases of construction.”
So, what is the percentage of Marlins funding compared to public subsidy over the life of the bonds? Try 6.46 percent.
To see all of the following images, plus others in high-resolution:
Proposed Miami Marlins Stadium
ALL IMAGES COURTESY POPULOUS (FORMERLY HOK SPORT)
Maury Brown is the Founder and President of the Business of Sports Network, which includes The Biz of Baseball, The Biz of Football, The Biz of Basketball and The Biz of Hockey. He is contributor to Baseball Prospectus, and is available as a freelance writer. Brown's full bio is here. He looks forward to your comments via email and can be contacted through the Business of Sports Network.
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