Over the past two years, I’ve written three articles discussing the obsession that some native leaders in New Mexico have with constructing a soccer stadium. In 2022, officers requested voters to fund a brand new stadium for the New Mexico United, the native soccer group, which might have value taxpayers upwards of $50M and counting. As one native information station summarized it: “Voters overwhelmingly said no”. Voters noticed by means of the fake promise of job creation and financial glory.
After a number of months handed, the concept of constructing a brand new soccer stadium but once more got here up, because of the mayor displaying up on a chunk of property and telling the world that this is able to be “the future home of a New Mexico United soccer stadium”. Oh, and town demanded $50 million from taxpayers for this new stadium, though the general public obtained no justification for that determine. After quite a few different native leaders famous how ridiculously rushed the method was changing into, this concept died down for some time.
Guess what’s coming again? A brand new soccer stadium! However excellent news for everybody as town has pressured that “no tax dollars will be used to build the stadium itself” and that the group will likely be paying for it “all”. Besides, just some small issues.
“The (metropolis) council is ready to take a look at the tax incentives that might be provided to New Mexico United for constructing their stadium at Balloon Fiesta Park…On Monday, town council is ready to go over the IRB, or industrial income bond, being provided to NM United, to assist fund the stadium” — KRQE, 02/02/2025
Nonetheless, by claiming that no tax {dollars} can be utilized and that the group can be liable for all the stadium building, town purposefully deceived the general public. New Mexico United is completely getting taxpayer help to construct this new stadium. The group will likely be eligible for tax incentives that enable it to not pay any property taxes for the subsequent 20–30 years. For anybody who doesn’t know, IRB’s are tax incentives that enable a enterprise to restrict how a lot property tax that they’ll pay over the next 20–30 years.
Most common taxpayers don’t care if their sports activities group are exempt from property taxes. However there’s a purpose so many sports activities groups require property tax exemption for a brand new sports activities venue. It saves them a LOT of cash. One estimate reveals (Per FieldOfSchemes.com) that 79% of the 126 stadiums and arenas for the NFL, MLB, NBA, NHL, and MLS are absolutely exempt from property taxes. That signifies that cities have misplaced round $650 million dollars in property taxes. Issue within the constructing’s life for all groups, and we now have $18 billion dollars of misplaced income.
“There’s no purposeful distinction between a authorities reducing a sports activities group proprietor a $100 million verify and one granting them $100 million in tax breaks” — Geoffrey Propheter, “Major League Sports and the Property Tax” (2022)
When KOAT, a neighborhood information station, bought their fingers on a lease settlement between the group and town, they discovered if a stadium was constructed, there can be “a lot of taxes the New Mexico United soccer club will not have to pay”. One other subsidy would come from the group being allowed to deduct “equipment purchased in the construction” from their gross receipts tax invoice. Let’s not overlook the millions spent by taxpayers on the present residence of New Mexico United. What else? We don’t know, and the group gained’t present us. Naturally, they’ll have “details to share” with the general public as soon as an “agreement is in place”. How good of them to point out the general public as soon as the taxpayers can’t do something.
One different factor:
“Town has pressured that no tax {dollars} will likely be used to construct the stadium itself….Nonetheless, the metropolis will likely be paying $30 million to enhance the car parking zone, lights, in addition to bogs at Balloon Fiesta Park the place the stadium will likely be situated” — KRQE, 02/02/2025
When requested about this contradiction, the soccer group responded in the way in which that you’d count on. They proceed to say that this new stadium can be “privately funded” all of the whereas throwing in just a little risk about how this challenge is lifeless and “can’t happen” with out the property tax financial savings and metropolis contribution.
