There is an adage in commercial real estate construction. The initial projection of costs to complete construction is rarely the end number.
Construction overruns are common and there is usually a disparity in the original projection and the final cost.
As such, the Buffalo Bills are severely over budget in their new stadium construction and are having to pony up an additional $800 million. The amount could go even higher.
Accordinglydue to this glitch, they have asked the league for its permission to borrow another $650 million to complete construction.
Ben Fischer of Sports Business Journal said the original cost to build stadium was projected to be $1.4 billion. The cost has been inflated to $2.2 billion.
Fischer states the Bills must petition the league to seek an exception to the NFL's debt limit. They must borrow another $650 million to get the stadium finished.
The team agreed to be responsible for all construction overruns when the deal with the municipalities involved in coming up with the costs to build the stadium.
Related: Look: Buffalo Bills Announce Renderings of New $1.4 Billion Stadium
The Bills chipped in $275 million in cash and borrowed an additional $200 million. They are raising an additional projected $225 million in personal seat license sales. The local municipalities, include the state of New York, are contributing $850 million.
With the added funds, the Bills would be all in for about $1.3 billion.
In December the team owner, Terry Pegula, who also owns the Buffalo Sabres of the National Hockey League, raised $1 billion by selling just over 20 percent of the team. The organization had an estimated to valuation of $5 million.
The league is expected to take up the request when it meets again later this month.
Related: BREAKING: Bills' Terrel Bernard Agrees to Contract Extension
Copyright 2025 The Arena Group, Inc. All Rights Reserved
This story was originally published March 7, 2025 at 12:18 PM.