Gov. Evers Proposes $290 Million For American Family Field Upgrades

American Family Field. Photo by Jeramey Jannene.

Governor Tony Evers would allocate $290 million from the state’s surplus towards upgrades to American Family Field in exchange for the Milwaukee Brewers extending their lease at the stadium through 2043, 13 more years.

The funding would be included Evers’ upcoming state budget plan, which is subject to approval from the Republican-controlled Wisconsin State Legislature.

“I’ve been watching baseball in Milwaukee since the County Stadium days when I had the chance of a lifetime to watch Warren Spahn’s 300th-career game there way back when. As governor, and also someone who also happens to be a lifelong Brewers fan, I’m so excited about the historic opportunity we have today to keep Major League Baseball here in Milwaukee for another twenty years and to usher in a new generation of Brewers fans in Wisconsin who can grow up rooting for the home team just like I did,” said Evers in a statement announcing the plan.

Evers said making the investment using the state’s estimated $6.6 billion surplus instead of bonding would save money.

“Using just a small portion of our state’s historic surplus, we can not only save over $200 million in taxpayer dollars in the long run, but keep good-paying, family-supporting jobs here and ensure the Brewers remain in Milwaukee and continue to play a critical role in our state’s economic success for another two decades,” said Evers.

The five-county, 0.1% stadium sales tax expired in March 2020 after collecting $605 million. It started in 1996 and was the primary public financing tool for what was originally Miller Park. Urban Milwaukee editor Bruce Murphy estimated the total public subsidy at $1.56 billion last year after including tax exemptions and local infrastructure costs.

There was an $87 million reserve fund established at the end of the sales tax that was expected to cover stadium improvements and maintenance through 2040. The Brewers said in 2022 that the amount set aside by the stadium’s owner, the state-controlled Southeast Wisconsin Professional Baseball Park District, was likely not enough to keep the stadium competitive long-term. The current lease calls for the ballpark to be maintained within the top 25% of all MLB ballparks.

“The Milwaukee Brewers are committed to working with policymakers on both sides of the aisle to extend the life of American Family Field and help make Major League Baseball possible in Wisconsin for the next generation. This will require creative solutions that garner bipartisan support. We oppose the return of the five-county tax, and we are prepared to commit to a lease extension for the Brewers to remain at American Family Field through at least 2043,” said Rick Schlesinger, President of Business Operations for the Brewers.

The new agreement would take the form of a 20-year lease, running through 2043, and a non-relocation agreement. It would replace the current lease, which expires in 2030 and includes a series of two-year options for the Brewers to extend the lease through 2040.

The Brewers conducted a study that concluded it would cost $428 million to improve the ballpark to the team’s desires. The Wisconsin Department of Administration executed a separate study that estimated it would cost between $540 million and $604 million. The team and Brewers agreed to use the Brewers’ assessment but add $20 million for inflation. The $290 million upfront payment by the state and much of the reserve, $70 million, would grow with interest to cover the $448 million cost. Detailed results of each study were not released.

Some of the maintenance work expected would be for the upkeep of the retractable roof, but the Brewers have previously tapped the sales tax reserve fund to upgrade the scoreboard, add a second-level ribbon board, replace the dugout flooring, replace the carpet in the club level and replace the signage overlooking Interstate 94. The maintenance needs would likely grow with the age of the stadium, which first opened in 2001.

“We are not asking for the Stadium District to take on new financial obligations under the lease, or for a new ballpark – just the resources to make sure the Stadium District’s existing obligations are met. As we said when the Stadium District’s funding shortfall first became known, we have remained focused on gathering facts and information that everyone can rely upon through a full capital needs assessment. This process of having Venue Solutions Group perform a capital needs assessment, combined with additional diligence by the state’s consultant CAA ICON, has established those facts,” said Schlessinger.

The financing agreement for Fiserv Forum and the Milwaukee Bucks included a $250 million public contribution, which included $80 million directly from the state. Then-Governor Scott Walker supported the proposal as part of a “cheaper to keep them” plan which reallocated the state income tax proceeds from having the team in Wisconsin. Evers’ announcement suggests the Brewers extending their lease would generate $400 million in revenue, not just from player income taxes, over the next two decades.

In March 2022, the Brewers were valued at $1.28 billion, the 25th most valuable franchise, by Forbes. Mark Attanasio acquired the team for $223 million in 2005. Sports team values have exploded in value in the past two decades primarily because of television rights agreements.

In a statement released after this article was first published, Assembly Speaker Robin Vos (R-Rochester) panned the nature of Evers’ announcement, but not the actual agreement.

“When the Bucks had a similar situation, Democrats and Republicans worked together to find a solution on the best path forward. Instead, Governor Evers drops this bomb in the budget, never mentioning or attempting to collaborate with the Legislature in any way,” said Vos in a tweet. “These are typical antics for him not being a leader but rather dictating exactly what to do and how to do it. Governor Evers’ style makes it difficult to generate consensus. I look forward to working with colleagues on both sides of the aisle to insure [sic] that the Brewers stay in WI.”