san antonio tx, October 23, 2025
News Summary
The San Antonio Spurs are seeking $1.3 billion for a new arena, proposing a visitor tax increase among other funding mechanisms. Critics raise concerns about the financial risks to taxpayers, especially given the recent performance of the existing Frost Bank Center. Voters will decide on the funding plan in a countywide election. This controversial proposal has sparked mixed reactions from the community, with some fearing the relocation of the team if the new facility is not built.
San Antonio — The San Antonio Spurs are seeking $1.3 billion in public and private funding for a new arena, a proposal that has prompted criticism from economists, divided public reaction, and a countywide vote on November 4 that could raise the visitor tax to 2% to help finance the project.
What voters will decide and the financing plan
The funding proposal entails a combination of three financing mechanisms: a Project Finance Zone (PFZ), a Tax Increment Reinvestment Zone (TIRZ), and a visitor tax increase. The PFZ would utilize sales tax revenue from Hemisfair, while the TIRZ would depend on property tax revenue from the area surrounding Hemisfair. Bexar County voters will vote on November 4 to raise the county visitor tax to 2% to help fund the new arena. The Spurs are promising an additional $500 million toward the project.
Economists and fiscal risk concerns
Top sports economist J.C. Bradbury has publicly criticized the public funding proposal for a new San Antonio Spurs arena and warned that taxpayers may bear most of the financial risk. Bradbury has highlighted that public financing for sports facilities carries elevated financial risks and pointed to past failures in other communities as cautionary examples. Economists and community members have expressed concerns about the sustainability and necessity of a new arena given the recent investment in the existing facility.
Team finances, existing facility and the novelty effect
The Spurs currently play in the Frost Bank Center, which, built in 2002, is the 12th-newest arena in the NBA and recently refurbished. The Spurs are ranked among the league’s most profitable small-market teams, reportedly earning $363 million in the 2023-24 season. Economists note that new arenas often produce a temporary increase in attendance and revenue—commonly described as the novelty effect—which typically diminishes over time, creating uncertainty about long-term public returns on arena investments.
Local economic context and community reaction
San Antonio’s tourism revenue is reportedly down 8.2% nationally, and local service and hospitality industry revenues have decreased by as much as 15%. Local business owners emphasize the importance of retaining the Spurs for economic reasons, while some residents oppose the use of public funds for the new arena. Public reaction to the funding plan presented to the city council was mixed; the measure passed the council 7-4.
Ballot propositions and voting timeline
Early voting for Proposition B, which aims to allocate the visitor tax to the Spurs arena, runs until October 31, with Election Day scheduled for November 4. Proposition A on the ballot seeks public funds for upgrading existing facilities, including the Frost Bank Center and other venue improvements. Voters will decide whether to approve the visitor tax increase and whether to authorize public funds for facility upgrades.
Relocation risk and political context
Spurs ownership has argued that a new arena is needed to maintain competitiveness and revenue potential; analysts say teams sometimes seek a revenue boost tied to new facilities. The Spurs may risk relocating without the new arena, although the team has not issued explicit threats about leaving San Antonio. City officials, business leaders, economists and residents remain split on whether public funding is the appropriate path.
Past examples and fiscal caution
Economists have cited past public-financing failures as reasons for caution, noting cases where promised returns did not materialize and taxpayers absorbed losses. One example sometimes referenced in analysis is a minor-league stadium project in Worcester, Massachusetts, which economists cite when warning about elevated risks in public financing for sports facilities.
FAQ
What is the funding amount sought for the new arena?
The San Antonio Spurs are seeking $1.3 billion in public and private funding for a new arena.
How will the proposed financing be structured?
The funding proposal entails a combination of three financing mechanisms: a Project Finance Zone (PFZ), a Tax Increment Reinvestment Zone (TIRZ), and a visitor tax increase.
What revenue sources would the PFZ and TIRZ use?
The PFZ would utilize sales tax revenue from Hemisfair, while the TIRZ would depend on property tax revenue from the area surrounding Hemisfair.
When will voters decide on the visitor tax increase?
Bexar County voters will vote on November 4 to raise the county visitor tax to 2% to help fund the new arena.
How much are the Spurs contributing?
The Spurs are promising an additional $500 million.
What is the status of the Frost Bank Center?
The Spurs currently play in the Frost Bank Center, which, built in 2002, is the 12th-newest arena in the NBA and recently refurbished.
What are the economic concerns cited by critics?
Top sports economist J.C. Bradbury criticized the public funding proposal for a new San Antonio Spurs arena and warned that taxpayers may bear most of the financial risk. Economists and community members express concerns about the sustainability and necessity of a new arena given the recent investment in the Frost Bank Center.
What are the local economic trends mentioned?
San Antonio’s tourism revenue is reportedly down 8.2% nationally, and local service and hospitality industry revenues have decreased by as much as 15%.
When does early voting end for Proposition B?
Early voting for Proposition B, which aims to allocate the visitor tax to the Spurs arena, runs until October 31, with Election Day scheduled for November 4.
What does Proposition A propose?
Proposition A on the ballot seeks public funds for upgrading existing facilities, including the Frost Bank Center and other venue improvements.
How profitable are the Spurs?
The Spurs are ranked among the league’s most profitable small-market teams, reportedly earning $363 million in the 2023-24 season.
How did the city council vote on the plan?
There are mixed public reactions to the funding plan presented to the city council, which passed 7-4.
Key features of the funding proposal
| Feature | Details |
|---|---|
| Total cost sought | $1.3 billion |
| Spurs contribution | $500 million |
| Financing mechanisms | Project Finance Zone (PFZ); Tax Increment Reinvestment Zone (TIRZ); visitor tax increase |
| PFZ revenue source | Sales tax revenue from Hemisfair |
| TIRZ revenue source | Property tax revenue from the area surrounding Hemisfair |
| Visitor tax proposal | Raise county visitor tax to 2% |
| Existing arena | Frost Bank Center, built in 2002, 12th-newest arena in the NBA, recently refurbished |
| Team revenue (2023-24) | $363 million |
Timeline
| Date / Time | Event | Status / Source |
|---|---|---|
| 2002 | Frost Bank Center built | Existing facility — built in 2002 |
| October 31 | Early voting for Proposition B ends | Early voting runs until October 31 |
| November 4 | Bexar County voters decide on visitor tax increase | Bexar County voters will vote on November 4 to raise the county visitor tax to 2% |
Selected statistics and simple visual charts
Deeper Dive: News & Info About This Topic
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Additional Resources
- KSAT News
- Wikipedia: San Antonio Spurs
- Spectrum Local News
- Google Search: Project Marvel NBA
- San Antonio Express News
- Google Scholar: NBA arena financing
- San Antonio Current
- Encyclopedia Britannica: Project Finance Zone
- KSAT News Explanation
- Google News: Spurs arena funding
Author: STAFF HERE SAN ANTONIO WRITER
The SAN ANTONIO STAFF WRITER represents the experienced team at HERESanAntonio.com, your go-to source for actionable local news and information in San Antonio, Bexar County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Fiesta San Antonio, San Antonio Stock Show & Rodeo, and Dia de los Muertos. Our coverage extends to key organizations like the Greater San Antonio Chamber of Commerce and United Way of San Antonio and Bexar County, plus leading businesses in retail, insurance, and energy that power the local economy such as H-E-B, USAA, and Valero Energy. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREDallas.com, and HEREHouston.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
