About 15 years ago, investment banker Greg Carey helped the New England Patriots secure the money for a stadium. He soon took his talents to Goldman Sachs.
Over a decade later, Goldman Sachs has become a leader in stadium finance, securing money for the 49ers’ Levi Stadium in Santa Clara, California, and the new Yankee Stadium in New York. Goldman Sachs doesn’t just provide the money however, it also helps make stadiums as profitable as possible.
“They’ve been the ones who have come up with all the new innovations in this business,” the Los Angeles Times’ Tim Logan says. Among the innovations: securing low interest loans, personal seat licenses (PSLs), and turning multi-billion-dollar stadiums into tax-free public entities.
The city of Carson recently announced that Goldman Sachs would bankroll a new stadium that could potentially be shared by the Oakland Raiders and the San Diego Chargers. If it succeeds, it will be one of the most expensive stadiums ever built.
Logan says most of the money will come from PSLs, and they’re expecting to sell a ton of them: about $800 million worth. “If they can raise $800 million with PSLs and they can sell it through a public entity that owns a public stadium, that money is not taxed,” Logan explains. “[They’ll] see all that money [go] into the stadium deal.”
We’re here to help you navigate this changed world and economy.
Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.
In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.
Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.