How much will taxpayers pay for new Buffalo Bills stadium? All you need to know about $1.54 billion project

The Buffalo Bills moved to what's now known as the Highmark Stadium in 1973. Orchard Park is a calm and sparsely populated neighborhood.

An agreement to replace Highmark with another stadium scheduled to open in 2026 is now being finalized. On Mar. 28, 2022, the Bills, New York State and Erie County reached an agreement regarding the arena's construction.

According to the plans, the arena will be constructed in a parking lot next to Highmark, with $850 million of the cost being covered by municipal and state taxpayers.

That will represent the largest public subsidy given to a new NFL stadium, with a substantial portion paid for by an area with a large population of people with low income in favor of a team owned by a billionaire investor.

Bills administrators recently made a public announcement stating that the project's total cost has grown to $1.54 billion from the initial estimate of $1.4 billion, a rise of $140 million.

Based on projections, around 60% of the total cost would come from public funding – $600 million is expected to come from New York State and $250 million from Erie County, where Buffalo is situated. The $750 million allotted for the Las Vegas Raiders stadium in 2016 has now been surpassed by the $850 million in total public funds.

Even without extra subsidies like yearly upkeep expenses, tax on property exemptions or tax exemptions for municipal bond interest, at $850 million, it's the biggest taxpayer donation for a new stadium in American history. The total government cost might exceed $1 billion due to these variables.

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What's the net worth of the Buffalo Bills’ owners?

According to Forbes, the Pegula family, who controls the Buffalo Bills, has more than $5 billion net worth.

By selling the drilling licenses for the Marcellus Shale to Royal Dutch Shell in 2010 for $4.7 billion, they became wealthy in the natural gas and hydraulic fracturing industries.

In 2014, after Ralph Wilson, the team's founding owner and a Hall of Famer, passed away, the Pegulas acquired the Bills in an NFL record-breaking $1.4 billion deal.

The Pegulas, who also run the affairs of the Buffalo Sabres of the National Hockey League, have made investments in the city by promoting core revitalization. The Buffalo Bills owners have also funded projects like the $200 million Harborcenter Hotel and ice rink complex, which launched a decade ago.