There are ample reasons why a minority stake sale of the Bills at this point is an “ideal time for such a transaction,” from the rising value of the franchise and the ballooning cost of the new stadium to owner Terry Pegula wife’s health and his responsibility to pay for improvements to the building where his other major asset, the Sabres, play, according to Petro, Gaughan & O’Shei of the BUFFALO NEWS. The Bills said that “these discussions involved no other teams owned by the Pegula family.” If Pegula or his family opt to sell the Bills, the minority owner "could be an obvious buyer, especially if the deal gives them the first right of refusal" (BUFFALO NEWS, 4/20).
LOOPHOLE: In Buffalo, Michael Petro noted while ticket sales for Bills games are subject to sales tax, the stadium deal the team struck with the state is “structured in a way that allows the Bills to avoid charging those taxes on the PSLs they are now selling to season ticket holders.” The team is expecting to “raise hundreds of millions of dollars from the sale of PSLs,” dodging the 8.75% sales tax that can quickly add up to an additional subsidy of $25M or more. It is another way the state, which will provide $600M for the project, is "providing subsidies for the construction of a new stadium" in Orchard Park, which is projected to be open in 2026 (BUFFALO NEWS, 4/19).
