The Miami Dolphins plan to get $50 million from the National Football League's financing program for the $425 million renovation of Sun Life Stadium that recently got underway, according to government documents.
Under the NFL's "G-4" financing program, teams can borrow money for a stadium project, then pay it back using ticket revenue that would otherwise go back to the league. The $50 million figure described in a Miami-Dade bond application is a third of the $150 million in G-4 financing that a county consultant estimated the Dolphins could have qualified for in 2013.
At the time, the Dolphins were pursuing an increase in the county's hotel tax to provide about $115 million toward what was then estimated as a $350 million renovation. That plan failed when the Florida Legislature declined to lift a state cap on hotel-tax rates, prompting owner Stephen Ross and Miami-Dade Mayor Carlos Gimenez to negotiate a new deal in 2014.
League rules require government assistance for a G-4 loan. The Dolphins are supplying the money for the renovation, which includes a partial canopy, new suites, and replacing existing seats with new ones. But under a deal struck with Miami-Dade Mayor Carlos Gimenez in June, the Dolphins will receive up to $5 million a year in hotel taxes for bringing Super Bowl, World Cup and other large sporting events to the renovated stadium.
In pursuing the deal, Dolphins executives said they weren't sure if the NFL would consider the arrangement as qualifying for the G-4 program. Owners later said Sun Life would qualify under the agreement. It's not known if the terms of the county deal impacted how much financing that fellow league owners were willing to give Ross for the renovation, which is expected to be done prior to the 2017 season. Team executives were not immediately available for comment.
The Dolphins are also pursuing $50 million in construction money from a state stadium program.
The $50 million figure is tucked into the agenda of an upcoming Finance Committee meeting of the Miami-Dade County Commission. The Dolphins want to use a government-financing program that lets for-profit companies sell bonds through a county-run board, then make the debt payments using private dollars.
Ross' organization would borrow $100 million through the county's Industrial Development Authority. The IDA would issue taxable bonds on Wall Street, and the Dolphins would pay back the debt using team dollars. County documents say Miami-Dade has no exposure to the debt if the Dolphins default. The Dolphins have used IDA for past stadium projects.