New York Taxpayers Bob Schulz, left and Westchester resident Tony Futia, right, are asking the Untied States Supreme Court to hear their case against the use of public funds to build a new Buffalo Bills
stadium
By Dan Murphy
As a longtime Yankee fan, I remember when then Yankees owner George Steinbrenner held then NYC Mayor Rudy Guiliani hostage over his demand for a new Yankee stadium, or else he would move the “Bronx Bombers” to New Jersey. That was back in the 1990’s, and the new Yankee stadium didn’t open until 2009.
More than two decades later, my interest as a New York taxpayer in paying for a new stadium for any major league team has disappeared. The latest stadium to be built in New York is in Buffalo, for the Buffalo Bills.
The cost for the Bills stadium is $1.4 Billion and includes $850 Million in public funds, with the State funding $600 Million in construction costs, and Erie County government funding $250 Million. The NFL will give the Bills owner, Terry Pegula, a $200 million loan, and Pegula will fund $350 of the remaining costs.
For New Yorkers to have to pay for an NFL teams stadium is not only a waste of money, but a violation of the State constitution, according to four New Yorkers, who have sued the State for the expenditure, and have now asked the U.S. Supreme Court to consider their case.
New York taxpayers Bob Schulz, Westchester resident Tony Futia, Joshua Trost and William James, argue that in prior case law, the courts “give deference to public funding programs essential to addressing the problems of modern life, unless such programs are patently illegal.” Schulz v State of New York, 84 N.Y.2d 231, 241 (1994).
The lawsuit against the deal, filed in State Supreme Court last month, asked the court to declare the public funding plan “null and void” based on “Article VII-Section 8.1 and Article VIII, Section 1, of the New York State Constitution, which “prohibits the giving or lending of State and County money “in aid of any… private corporation … or private undertaking ….”
Bob Schulz, one of the plaintiffs in the lawsuit said, “By appropriating $600M in state funds, and authorizing $250M in county funds to aid the Buffalo Bills, Gov. Hochul and the Legislature have violated provisions of the Constitution that prohibit the use of public funds in aid of private undertakings. We are asking the Court to invalidate those appropriations.”
Westchester resident Tony Futia said, “New York state has been deliberately not teaching generations of children civic education as required by section 801 of the NY State Education Law.”
According to polling, most New Yorkers do not approve of the public expenditures for new stadiums, and a political odd couple of sorts, with conservatives Schulz and Futia joining with progressive democrats to oppose the “corporate bailout” of the Buffalo Bills.
State Senate Finance Committee Chair Liz Krueger said, “I’m sorry, this is a terrible way, a terrible way to use the taxpayers’ money.” Assemblyman Ron Kim said that 40 years of data show that public funding of stadiums is “one giant scam in economics.”
The owner of the Buffalo Bills, Terry Pegula, is currently worth $5.1 billion. The estimated cost of renovating the existing stadium was for a total cost of $350 Million.
“We can’t use public money in aid of a private undertaking by a private corporation,” Schulz said. “They’re doing indirectly what the Constitution prohibits them from doing directly.”
So far, the courts in New York State have rejected Schulz and Futia’s arguments, who now have one last act of recourse: The United States Supreme Court.
Schulz and Futia will ask the nine USSC justices to consider their lawsuit, based on the argument that the U.S. Constitution guarantees New York residents and taxpayers the right to have their government abide by the New York State Constitution. And the NY Constitution is being ignored with the use of public funds for the Bills stadium, which will be owned by the City of Buffalo but will clearly benefit a Billionaire, and those who have contracts to build and operate the new stadium.
What happens if the USSC rules in Schulz and Futia’s favor? The ownership of the Bills should issue a refund to the taxpayers of New York State, says Schulz. “They’re fully aware of this lawsuit. If they go ahead with this lawsuit without waiting then it’s certainly their fault. That money has to be paid back to the taxpayers.”
The State funding for the new stadium was included in last year’s state budget.
Futia, who we have featured in our newspapers and online during his ongoing battle with the IRS, said most New Yorkers do not understand that the public financing for stadiums used for private use is illegal in our state.
The value of NFL teams has doubled every ten years, so ownership can well afford to finance their own new stadium. And the cost to renovate the existing stadium was only $350 Million. I wish the Yankees had done just that and kept the old Yankee Stadium open.
Editor’s Note: Governor Hochul has been criticized for pushing through the expenditure, including accusations of benefits from the new stadium going to her husband William Hochul, who is general counsel and senior vice president at Delaware North, the Buffalo-based hospitality giant that has operated concessions at the Bills stadium for the past 30 years. Media reports state that while no hospitality contract has been concluded, Delaware North’s history with the Bills puts them in a favorable position.
