New Arena Article

[MU88]

I do know one avenue to obtain public funding that has been discussed, and the one that may gain footing and actually get this thing done, is a type of jock tax. I'd like to see that extended to the Brewers as well to take the place of the .1% sales tax.

This type of tax should be attractive to the state residents that don't care if we have the Bucks too. If the Bucks leave so does that tax income so why should they care if that tax goes to pay for the public portion of a new arena?

Basically, the state provides funding, and that funding is paid back with the income tax of the players who play games in Milw (extends to coaches, staff, etc but the big money comes from the athletes). Add in the Brewers, and now you are talking about at least $160 million in taxable income at the highest income rate.

You could also take it a step further to incorporate state sales tax on sales generated by the new arena as well.

I personally think this is how the state / governor explains why tax payer money is being used. It is tax money that won't be here without a new stadium / team, so why would the people against the stadium object?

I assume your are saying that athletes will earn $160 million in the state of Wisconsin. That is possible, but is probably a stretch. Brewers and Bucks combined payroll is probably closer to $130 million. There are also issues about where the taxes are due, Wisconsin or where you earn the money, but let's ignore this for the sake of argument. But, using the $160 taxable figure, that leaves around $150 million taxed at 7.65%, assuming no deductions (which, of course you would have for e.g. federal income taxes paid), giving you a revenue stream of roughly $11 million or debt service on $200 million. However, probably $7 million of the stream comes from the Brewers, which would be taken off the regular income tax income of the State. This would cause a huge fight in Madison. I think the best you can hope for is around a $1.75 million revenue stream. Now, this will provide debt service on $30+ million. Not a huge amount of money, but maybe enough with the ownership contributions, naming rights, and a possible facility fee on each ticket.

As I said before, I don't think paying for the Arena is that big of an issue. Very little tax dollars will be needed. $200 million from ownership, $75 million debt service from naming rights (roughly the same as Ottawa and Sacramento) and let's say $75 million debt service from a facility fee ($4 per ticket). Its the side projects everyone wants tack onto this project that will be the biggest obstacle to the Arena. People want to tie this project to an expanded convention center, a new PAC, updates at the zoo, park maintenance, etc. etc. etc.

BTW, the buyback is at cost plus $50 million. Its a fixed price, already negotiated. The Clippers sale has no bearing on the buyback. So, ownership would have a $50 million capital gain if the team is sold back to the league. The leagues taxable event would be upon the sale of the franchise to a third party.

[IWB]

This year the Brewers salaries total $107 million (not including coaches).
This year the Bucks salaries are listed at over $51 million. (not including coaches)

Total - $158 million

Add Packers to it and that is an additional $133 million.

[pbiflyer]

This year the Brewers salaries total $107 million (not including coaches).
This year the Bucks salaries are listed at over $51 million. (not including coaches)

Total - $158 million

Add Packers to it and that is an additional $133 million.

Don't they only get taxed for home games? Don't visiting players get taxed for games played in Wisconsin?

[MU88]

This year the Brewers salaries total $107 million (not including coaches).
This year the Bucks salaries are listed at over $51 million. (not including coaches)

Total - $158 million

Add Packers to it and that is an additional $133 million.

Even so, taxable income, assuming all Brewers and Bucks income is taxable in Wisconsin, is around $100 million. You have to deduct federal income taxes of the top because you don't pay tax on monies paid to the feds as tax (let's use 35 % because $18 million is going to be taxed at less than the 39.6 highest bracket). So, you are down to just over a $100 million in taxable income, which will translate to around $7 million (again, only a portion is taxed at the 7.65 rate), of which only 1/3 can be attributed to the Bucks. So, the State earns $2.3 in taxes from the Bucks, maybe. Trade the garbage on the team (Sanders and Mayo) which will happen if at all possible and you are down to well under $2 million.

Taking the income from the Packers or Brewers taxes to pay for the Bucks stadium will not fly. No way.

[Litehouse]

Don't they only get taxed for home games? Don't visiting players get taxed for games played in Wisconsin?

Yes, but WI probably comes out a little ahead when that's factored in because of the Bucks.
The Bucks are near the bottom of the NBA in payroll so WI comes out ahead on taxes with higher paid visiting teams.
http://www.spotrac.com/cap-tracker/nba/2014/

The Brewers are about average for MLB payrolls, so it's probably a wash.
http://www.spotrac.com/cap-tracker/mlb/

NFL teams are all pretty close with their salary cap, so it's probably a wash for the Packers too.
http://www.spotrac.com/cap-tracker/nfl/

[Goose85]

One thing to note with respect to the jock tax. It assumes that with no stadium no Bucks, so it would include all sales tax related to the stadium events and the Bucks. Never looked, but I would Bucks tickets carry a sales tax?