What: On April 4, voters in St. Louis, Missouri will decide whether to increase taxes in order to finance a new soccer stadium.
Why it matters: Soccer and Major League Soccer have become important drivers of economic and cultural growth in American cities as the sport continues to grow in popularity across the country.
Next Tuesday April 4, St. Louis citizens will be asked to vote on two propositions related to the construction of a new soccer stadium in the city. The first is related to a sales tax increase on businesses’ out-of-state purchases.
The second proposition is for diverting $50 million of the new revenue to help build a new outdoor soccer stadium. In addition, $10 million of tax increment financing money will be come from a portion of Paul McKee’s NorthSide development that will be used to build the stadium.
Bain Capital Group, followed by Summit Partners, Lewis & Clark Venture Capital, Tortoise Capital Advisors are among the investment firms interested in joining the building project.
While tax revenue will go far, an additional $150 million in private investment are required for St. Louis to join the MLS. Private investors at the Soccer Club St. Louis (SC STL) are prepared to commit 80.3% of the total estimated $305 million to join the league.
In terms of sports entertainment St. Louise hasn’t been very strong in the past few years, with no professional NFL nor NBA team, which is why building this new soccer stadium and joining the MLS might represent an important business opportunity for the city (and for the fans).
Feature Image: Pixabay