Financial advisor breaks down Bills Bonds: 'It's a novelty thing'

Buffalo, N.Y. (WBEN) - Erie County is giving Buffalo Bills fans a chance to directly invest in the new stadium in Orchard Park through "Bills Bonds".

"It's a novelty thing," said Michael Angelucci, Certified Financial Planner with Level Financial Advisors. "It's not anything that's going to make anybody a lot of money, depending on how much you invest. But it's fun for people who want to take advantage of it."

He explained that municipal bonds are especially attractive for people in higher income tax brackets because they are exempt from state and federal taxation.

Angelucci expects the bonds to be issued at around 4.25%. That's the price today, but it could change before next month.

"For somebody to get 4.25% tax-free, that's the equivalent, depending on your tax bracket, of anywhere between 5% and 6% in a taxable account. They are appealing to people in higher tax brackets," he added.

Fans would have to invest a minimum of $5,000, and they would have to have a brokerage account.

Here's how it would work. If someone were to invest $5,000, at, let's say 4% interest, you would get a check for $200 a year. You would receive a check for $100 every six months until the bond matures or you sell it on the secondary market. At the end of 30 years, you would get your $5,000 back.

Angelucci also said the bonds would most likely be callable, which means, if interest rates go down, the county can refinance the debt and give you your money back at any time.

The site BuyBillsBonds.com has the brokerage firms you can go to, to open an account. TD Securities, Raymond James, J.P. Morgan are some of them.

What kind of demand does Angelucci expect for this?

"I think there will be interest. I have clients who buy Disney stock for their grandchildren because it's a novelty thing; they want them to own part of Disney. Here, you won't own part of the Buffalo Bills, but you will own part of the Bills experience with the new stadium."

The tentative date for the bond sale is Sept. 23, 2024.

Erie County has paid approximately half of the $250 million it is obligated to pay for construction. The remaining $125 million will be covered through bonds.