VIKINGS STADIUM
Debt service costlier than just funding gap
I am among those who are reluctantly in favor of public financing assistance for a new Vikings stadium. But the Nov. 16 editorial ("Stadium matchup is also one-sided") got me thinking.
It stated that in 2010, the Green Bay Packers generated $259 million in revenue, vs. $227 million for the Vikings. Is this really what the whole stadium debate is about -- a $32 million deficiency in annual revenue?
A little math produces the following analysis: The Vikings are proposing a stadium estimated currently to cost $1.1 billion. The team will contribute about $400 million, leaving about $700 million to be financed by the state and various other public entities.
In its September 2011 bond issue, the state paid an average of 2.8 percent on 20-year general obligation bonds. That's an average of about $46 million annually in public costs for repayment of a $700 million bond to build a new stadium.
Instead of building a stadium, with its unknown cost inflation and other imponderables, why not simply offer the Vikings an annual subsidy equal to the difference in annual revenue generated by the Packers and the Vikings.
During years the Vikings outearn the Packers, the state would owe nothing. Such a subsidy would cost substantially less than the debt service, would avoid further acrimony over a stadium and would test the overall seriousness of the Vikings ownership.
WARD LYNDALL, MINNEAPOLIS
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