Sports Construction Spending is Expecting a 2019 Leap
Forecasts show that spending on the construction of new arenas and stadiums in 2019 will jump to almost $6 billion, as already $11 billion has been allocated for projects beginning in 2019 or later. For the moment, 2018 is anticipated to see a total of $4.1 billion in spending on sports construction, marking a nearly $3 billion drop off from 2017. 2017 was a rocky year for sports spending in general. Vendors and analysts attribute the lull to coming off 2017’s relatively large spending and the fact that most ongoing projects are soccer stadiums, generally less costly than other sports. The House GOP Tax bill likewise complicated things due to a provision eliminating the option to use tax-exempt bonds to fund stadiums. In the pasts, state and city officials have relied on the tactic to keep their sports teams or draw others from across the country. Reports show nearly half of the Las Vegas Raiders $1.9 billion stadium was paid for in this way. The uncertainty surrounding both the bill and its exact contents had spending on hold for many programs. But the final bill eliminated the provision, reassuring owners and investors that spending can continue unimpeded. That means a major swell in sports construction spending is just around the corner.
