Author Topic: Potomac Nationals New Stadium Watch  (Read 15173 times)

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Offline NJ Ave

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Re: Potomac Nationals New Stadium Watch
« Reply #100: March 03, 2017, 09:02:31 AM »
The bond issuer has ultimate liability for default (there may be more reasons that it's bad, but that always jumps out with these arrangements)

But the team has been there for 35 years right? Has there been speculation that their finances cannot absorb $3 million a year in rent and debt service costs? Or is the county close to its debt limit and this will preclude it from issuing bonds to cover other investments?

I don't know, I'm no huge fan of publicly funded stadiums, but this seems like a gray area. You're not servicing the debt by increasing taxes (like the business tax around Nationals Park). The team is paying to service the debt. So unless this will (a) bump the county up against its debt limit, (b) negatively affect the credit rating for the county, or (c) there's a reasonable concern about the team's ability to repay over the life of the bonds, I don't understand the issue.