North Carolina has a plan to pay for a $1.7B baseball stadium. Why lawmakers can’t agree. :: WRAL.com
Leaders of the North Carolina Senate are pushing for a government-backed framework for a $1.7-billion Raleigh stadium — a plan that would support a Major League Baseball expansion bid, a legislative proposal reviewed by WRAL News on Saturday reveals.
But House leaders’ opposition to public funding for the project has kept the proposal out of the state budget for now and it’s not expected to make the final spending plan, people familiar with the negotiations tell WRAL.
The proposal calls for $500 million in state funding with the rest of the stadium money coming from local revenue sources, sports gambling taxes, personal income tax withholdings from players and performers at the facility and the creation of a sports and entertainment taxing district.
A seven-member North Carolina Baseball Authority, appointed by state and local officials, would finance, design, own and operate the MLB stadium, the proposal says. The authority — modeled after the Centennial Authority, which oversees Raleigh’s Lenovo Center — could enter a land lease for state-owned land to build the stadium and surrounding entertainment district.
North Carolina is the most populous state without a Major League Baseball franchise. And the plan would significantly elevate Raleigh’s expected bid for a Major League Baseball expansion franchise or put it near the top for any existing team that might be looking to move.
Republicans hold large majorities in both chambers so they control the budgeting process, but the chambers’ leaders have sparred over big-ticket items during the past year.
The baseball proposal’s exclusion from the budget would raise questions about whether investors would move forward with a bid, or if state or local governments would pursue other avenues outside the budget to provide financial backing. The proposal could be introduced later in the legislature but timing is an issue for preparing a bid.
“The message this proposal sends to MLB, if enacted, is that North Carolina has done the work, the legal structure exists, the financing is authorized and the market is ready,” the proposal says.
A spokeswoman for Senate leader Phil Berger, who has been the lead champion of the proposal, didn’t comment on Saturday. A spokeswoman for House Speaker Destin Hall, who recently expressed his skepticism over spending tax dollars to finance a ballpark, said he is not supportive of appropriating funds for a stadium without more due diligence on the potential return. Others in his caucus share his concerns.
Financial commitments in the proposal would be contingent on Major League Baseball approving North Carolina for an expansion or relocated team, and it contained a four-year sunset provision. If Raleigh isn’t picked for a franchise, unspent funds would be sent back to the state’s general fund, the proposal says.
WRAL first reported the broad strokes of the proposal last week. The proposal document itself provides new details and offers a deeper understanding of how lawmakers have sought to work it into the budget, which is being finalized between leaders of the House and Senate.
WRAL confirmed the authenticity of the document. People familiar with the proposal spoke on the condition of anonymity because they weren’t authorized to publicly discuss the negotiations.
The status of the effort could change as budget talks evolve. The baseball proposal is one of the largest remaining issues to be settled.
Push for a bid
Major League Baseball Commissioner Rob Manfred said he wants to choose two new cities for expansion before his term ends in January 2029. The cost of acquiring a franchise and building a stadium is projected to be at least $4 billion.
Without a framework in place for funding a stadium, it could be harder for Raleigh’s bid to win approval from MLB in any expansion process. Cities across North America have expressed interest in MLB expansion, including Nashville, Salt Lake City, Sacramento, Montreal and many others.
Carolina Hurricanes owner Tom Dundon and North Carolina Courage investor Marc Lasry — both billionaires — separately have expressed a desire to bring a MLB franchise to Raleigh. But additional financial support, particularly with the bipartisan backing of state and local governments, is seen as essential, particularly as the cost of franchises and facilities rise. A representative of Dundon declined to comment. Lasry didn’t respond to a request for comment.
“I don’t think you get a Major League Baseball team or a professional football team at this point without there being some cooperation on the part of local and/or state governments,” Berger told reporters last week. “Look around the country; it’s very unusual. And my understanding is most of the professional leagues discourage interest in localities that basically say, ‘We’ll take it, but only if the stadium is paid for by the owners.’”
Democratic Gov. Josh Stein, Republican State Treasurer Brad Briner, Republican state Senate leader Phil Berger and Raleigh Mayor Janet Cowell, a Democrat, have endorsed the idea with many pointing to the support for the Carolina Hurricanes as evidence of the market’s readiness. The Hurricanes sold out watch parties at Lenovo Center during this year’s Stanley Cup Final with thousands of other fans watching outside the arena and at other venues across the city. Nearly 200,000 fans attended the team’s parade celebration in downtown Raleigh last week.
“Major League Baseball would be a great addition to Raleigh,” state Commerce Secretary Lee Lilley said in a statement sent to WRAL last week. “As with any transformative economic development initiative, success is built through partnership, and we would work with local and state leaders, and other stakeholders, to leverage our assets for the best path forward.” The Commerce Department is overseen by the Stein administration.
How to pay for stadiums
Cowell told WRAL last week that specifics of a bid, including financing, would need to be in place by next year. She expressed support for raising the Wake County hotel occupancy tax to provide additional funding for professional sports — likely one of the local revenue sources outlined in the proposal.
Charlotte is using a similar strategy, paying $650 million with tourism and hospitality taxes as part of an $800-million renovation of Bank of America Stadium, home of the Carolina Panthers of the National Football League and Charlotte FC of Major League Soccer.
Rep. Erin Paré, R-Wake, said Saturday that she won’t support raising the occupancy tax for any reason unless the changes are made to how the county’s hospitality taxes are distributed. Paré wants Wake County towns outside of Raleigh and Cary that pay those fees to see a return.
“I don’t want my towns getting ripped off, which they have been for 30 years,” said Paré, who represents parts of southern Wake County.
It is one of several challenges the funding could face.
Hall said previously that “private companies should pay for their own facilities instead of relying on the General Assembly” and that he would need to see a compelling case for a strong return on investment.
The $1.7-billion figure for the stadium came from independent financial models, the proposal says.
Income tax paid by members of the Hurricanes, visiting players from other teams and concert performers is not withheld to fund Lenovo Center, but the model of funding has become increasingly popular in recent years as a way to fund stadium projects or capital improvements at stadiums and arenas.
Under the proposal, the governor, House speaker, Senate leader, agriculture commissioner, state treasurer, Raleigh City Council and Wake County Board of Commissioners would each appoint a representative to the authority with the treasurer appointing the board chair. It would have to report annually to a legislative committee.
“The authority may secure site control, commission feasibility studies, and negotiate with MLB and prospective ownership groups,” the proposal says.
The authority, which would dissolve automatically if no franchise came to North Carolina, would operate like the Centennial Authority. The Centennial Authority was created by lawmakers in 1995 to study, design and oversee construction of Lenovo Center, home of the Hurricanes and NC State men’s basketball. Centennial Authority owns the building.
The $158-million arena, which opened in October 1999, was built on state-owned land. The Hurricanes paid about $60 million with the coming from local hospitality taxes and the state.
A current $300-million renovation of the arena is being financed by money from hotel occupancy taxes and prepared food and beverage taxes paid in Raleigh and Wake County. Lawmakers last year approved $35 million for infrastructure related to proposed development around the arena.
Dundon, the Hurricanes owner who also purchased the Portland Trail Blazers of the National Basketball Association, wants Portland and Oregon to pay for renovations at the city-owned Moda Center.
North Carolina is the only state that hasn’t passed a comprehensive budget for the two-year fiscal cycle that began on July 1, 2025. Instead most state agencies are operating under spending levels approved in October 2023. In May, Hall and Berger announced an agreement on tax rates and raises — 3% for most state employees, 8% for public school teachers and higher raises for certain employees in public safety positions. But a final deal on a full spending agreement hasn’t materialized.
Hall said this week that funding for baseball, a planned standalone children’s hospital and other projects across member districts were among the final items to be worked out.
Timing and politics
Berger has been the top Senate Republican since 2005 and the Senate leader since 2011 when the GOP took control of the chamber. He lost in the Republican primary in March and is serving the final months of his term. In 2023, his push for authorization for four casino districts across the state, including in his home county of Rockingham, delayed the budget process for months. The House rebuffed him then, too.
It’s unclear if Berger or other Republican legislative supporters would pursue other ways to secure public financing during the current legislative session. Alternate avenues face enormous obstacles, and it’s unclear which Senate lawmaker would be the plan’s biggest champion after Berger’s term ends.
Lawmakers could pursue the baseball proposal in a standalone bill, but it might be harder — if not impossible — for lawmakers to gin up enough statewide support for a bill that would primarily benefit Wake County. There are 71 Republicans in Hall’s House caucus and just two of them represent parts of Wake County – Paré and Rep. Mike Schietzelt.
The Department of Commerce also could offer economic incentives if the expansion met certain criteria, but the department’s grants are typically focused on the promise of private investment and job creation — and paid out only after a company meets investment or hiring targets. Commerce-led incentives packages don’t typically offer up-front cash, a critical element to a stadium-financing plan that would satisfy baseball executives. Briner, the treasurer, has indicated the state pension plan could be involved in an effort to land high-profile businesses, including MLB.
Other baseball business could delay Major League Baseball’s expansion plans, which could give North Carolina more time to build support for future budget negotiations if the issue fails this session.
Major League Baseball and its players’ union face a difficult negotiation over a new collective bargaining agreement after the 2026 World Series. Owners are seeking more certainty over costs, including a salary cap, drastic changes to contract lengths, the draft, and how revenue is shared among its clubs.
Baseball players and their union have long resisted any type of salary cap. Expansion could become a part of the negotiations. The dispute, which is expected to drag on, could cost baseball all or part of its 2027 season — and could impact expansion decisions in any number of ways.
WRAL State Government Reporter Caroline Yaffa contributed to this report.
