When politicians strike a deal to build a new stadium or invite a sports team to their state, the typical framework for such deals is often questionable.
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But Gov. Glenn Youngkin is not a typical politician. And the partnership he struck with Monumental Sports and Entertainment is unquestionably good for Virginia.
The deal that Mr. Youngkin — a conservative and successful businessman with much experience in this arena — struck with Monumental is also highly unusual.
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Consider recent deals for new stadiums elsewhere. Venues for the Tennessee Titans, Buffalo Bills, Las Vegas Raiders, and Oklahoma City Thunder were all financed using some combination of state and local bonds. Some were also financed with hundreds of millions of taxpayer dollars upfront.
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Mr. Youngkin took a different tack. Instead of a taxpayer-guaranteed GO bond, the governor made a deal with Monumental Sports and Entertainment to use a revenue bond tied solely to the arena itself.
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There are no new taxes or tax increases associated with this partnership, either. It is funded with existing taxes on activities that will naturally take place — just at a greater volume — at the new arena.
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Private financing represents 72% of the total funding for this project. The funding from the Commonwealth of Virginia and the city of Alexandria — again, solely generated from site-specific revenue — accounts for the other 28%.
Compare that with the ratio of public-private funding for the Titans, Bills, and Thunder projects, and you’ll see how sweet a deal Mr. Youngkin struck for Virginia. Public funding for the Titans, Bills, and Thunder represented a majority of the financing (Oklahoma City funded 95% of the Thunder project).
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The common refrain that these projects siphon resources away from other public necessities, such as schools and infrastructure, does not apply to this deal, either. For Alexandria, this project will come with new, critical funding for education, multimodal transportation, affordable housing, and infrastructure.
The framework of this deal and the benefits Mr. Youngkin secured in it should make every Virginian happy that we have a businessman as governor.
It is not a bailout for a billionaire team owner. It is not a cost burden on taxpayers. It is not a leech on limited public dollars.
It is a monumental opportunity for Virginia, the city of Alexandria, and every Virginian rooted in conservative policymaking.
