The sports venue construction segment hit temporary turbulence last year when it almost lost what has become a key source of funding under the House GOP tax reform bill. Lawmakers included a provision that would have eliminated the option to fund future sports arenas and stadiums with tax-exempt bonds.
States and cities often use this tool to help finance modern projects that will keep a lucrative professional sports franchise from moving or draw one in. In fact, tax-exempt bonds are helping taxpayers contribute $750 million to the construction of the new $1.9 billion Las Vegas Raiders stadium. Team owners said they would consider looking for another location if state and local officials hadn’t agreed to contribute such a large share.
