The projected cost of the Buffalo Bills’ new stadium has risen to over $2.1 billion, which is more than $560 million higher than the initial estimate, team officials told The Associated Press on Friday. Bills owners Terry and Kim Pegula will cover the extra costs.
Bills president Pete Guelli said he wasn’t surprised by the increase, as the costs had been going up steadily since construction started 16 months ago.
He also emphasized that the higher cost shows the Pegulas’ dedication to the community and their commitment to building the best stadium possible, without cutting corners to save money.
“To sum that up, the Pegulas will not deviate from building a best-in-class stadium in Buffalo,” Guelli said.
“It’s going to be an exceptional fan experience and an incredible place to play. I think we’re very proud that we can build a facility like this in Buffalo and have it available to our fans,” he added. “We need this project to be a success for the team on and off the field, and it will be.”
Guelli said that the increased costs won’t change the timeline for the project. The new stadium is being built right across from the Bills’ current home and is still set to open by June 2026.
Taxpayers are contributing a total of $850 million to the project—$600 million from the state and $250 million from the county. When the deal was made two years ago, this amount was more than half the cost, but now taxpayers will be covering around 40%. The Bills are responsible for any costs over $1.54 billion.
“I’m very pleased knowing that when all is said and done—and it still isn’t done, so it could go up even more—that the county is going to probably have contributed no more than 12% of the total cost, which is a pretty good deal,” Erie County Executive Mark Poloncarz told The AP.
The Pegulas are now responsible for $1.25 billion of the construction costs, plus an additional $144 million as part of a community benefits package to be paid over the 30-year lease.
The Bills are covering their portion through an NFL loan program and by introducing a new seat licensing fee for season ticket holders. There are also early plans to create an entertainment zone with restaurants, bars, and shops, to be developed once the current stadium is demolished.
The Pegulas are also looking to raise funds by selling a minority share—no more than 25%—of the team. However, Guelli said this is unrelated to the rising construction costs.
The Bills met with several interested buyers over the summer and fall, and Pegula is expected to select a new partner by the end of the year.
The Pegulas bought the Bills for $1.4 billion in 2014 from the estate of Ralph Wilson, the Hall of Fame owner who passed away. Forbes now values the team at $4.2 billion.
The new stadium will have seating for about 60,000 fans, down from the 72,000 seats at the current stadium, which opened in 1973. The existing stadium is outdated and has structural issues, including cracks. While the new stadium won’t have a roof, it will have curved sides that will cover most of the seating.
Unlike the current stadium, which faces east to west, the new one will be oriented north to south to protect fans from strong winds off nearby Lake Erie.
John Polka, vice president of stadium development, said inflation played a big role in the price increase by raising the cost of construction materials. Rising labor costs and added design features also contributed to the higher price.
He mentioned that the team could have reduced the scope of the project at various points to save money but chose not to.
“We could have stopped at some point and said, let’s cut back. And that was not the case at all. In some cases, we’ve actually gone back in recent months and said, ‘Hey, we’ve got an idea or something that we think will enhance the fan experience or give us a better competitive advantage,’” Polka said.
“And that’s really a testament to the Pegulas saying: ‘This is what we want to build. We designed it. This was our intent. There were reasons behind it, and we’re going to move forward with that.’”
New York’s Empire State Development, which will manage the new stadium, noted that aside from the state’s reduced contribution, the deal also resulted in $462 million in contracts for minority- and women-owned businesses.
Guelli, who became president of the Bills and the NHL’s Sabres in March, reflected on how much the new stadium means, especially after the uncertainty fans had about the team staying in Buffalo.
He remembered when people worried the Bills might leave, and now there’s a $2 billion stadium being built to keep the team in Buffalo for the long term.
“People were talking about the Bills potentially leaving and now there’s a $2 billion stadium going up across the street to keep the team in Buffalo long term,” Guelli said. “It’s pretty gratifying for everybody to be a part of it, especially with the Pegula family.”
