The National Football League has given permission for the New York Giants and New York Jets to borrow as much as $715 million toward building a shared stadium in New Jersey, Bloomberg reported.
The NFL’s debt ceiling typically permits a team to borrow up to $150 million, according to the wire service. The higher debt limit reflects the cost of construction in the New York area, said Jets president Jay Cross.
The two teams will split the cost, estimated at $1.4 billion. The Jets plan to ”go long” by issuing 40-year paper, Cross reportedly added: “It’ll be bonds, some combination of floating and fixed. I don’t think that’s been decided yet.”
Citigroup is reportedly handling financing for the Jets; Goldman Sachs and Lehman Brothers are working with the Giants.
Last December, NFL owners also agreed to give the Jets and Giants a combined $300 million toward the new stadium from a league fund that provides money for construction, according to Bloomberg. In addition, the teams plan to secure a naming rights sponsor and to sell luxury suites.
“It’s now going to be a function of staying on budget in terms of construction, and selling our premium seating for as much money as we can get,” Steven Tisch, co-owner of the Giants, told Bloomberg.
Groundbreaking is scheduled for May, Cross told the wire service.