Quote:
Originally Posted by Katipan
Guys, I don't know if you know this, but rich people take much bigger risks than building a new stadium for a historical NFL team.
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Well, this isn’t really accurate as it relates to STAR bonds. That is an atypical risk with no precedent for this type/scale of project without equity upside.
The “rich people” who buy the bonds don’t have any collateral backing it, nor do they have any claim on the Chiefs’ overall revenues. They only have a claim on the limited tax take in that very defined economic zone.
There’s a reason why this structure isn’t used to fund everything under the sun.