Wisconsin governor announces plan to fund Bucks’ new arena

Speaking in front of the Metropolitan Milwaukee Association of Commerce, Walker outlined his plan to raise $220 million in funding for the new arena, joining the $100 million pledged by outgoing owner Herb Kohl and the $150 million promised by new owners Marc Lasry and Wesley Edens. Walker said NBA players currently pay $6.52 million annually in state income taxes and the projected growth in player salaries would be enough to cover the $220 million.

The projected growth in player salaries is primarily due to the NBA’s new nine-year, $24 billion television deal in 2016. The new deal is about three times the current $900 million television deal, and the influx of television money will have the salary cap on the rise.

In Walker’s mind, with player salaries set to be on a major upswing, so too will be the tax collections on those deals. That will be the revenue needed to pay for the new arena:

The Bucks released a statement thanking Walker for his support:

This $220 million plan combined with the $250 million already pledged by the Bucks’ new and old owners, puts the total funding at $470 million, well in the ballpark of what’s needed to build the new arena.

While this is a win for the Bucks, Walker’s proposal still must be approved by state legislature, so nothing is guaranteed. But this is a huge step toward keeping the Bucks in Milwaukee.

Walker also announced that even if the team is sold during the time the debt is being paid off, the sale proceeds will go toward paying off the obligation. That would be the case whether the team stays in Milwaukee or not.