Multibillion-dollar corporation to receive $750K taxpayer handout to bring European soccer powers to Red Bull Arena

Inside the Red Bull Arena in Harrison, NJ on Sunday, September 17, 2023. The New Jersey Sports and Exposition Authority wants to give $750,000 to the arena to host a soccer exhibition match.

Two high-profile European soccer teams will owe a debt of gratitude to New Jersey’s taxpayers when they take the field, or “pitch” as they say, at Red Bull Arena in Harrison next month. Some taxpayers might rather have their $750,000 back instead.

The “friendly” — the July 31 match is nothing more than an exhibition — between the German Bundesliga power RB Leipzig and English Premier League elite Aston Villa, will be funded, at least partially, by $750,000 from the New Jersey Sports and Exposition Authority.

The state agency, which oversees the MetLife Stadium complex and a multitude of aspects related to the Meadowlands District, is expected to approve the funding at its regular meeting Thursday morning.

The NJSEA resolution says the game will generate $6 million in regional economic benefits and the funding will help Red Bull Arena attract high-quality European soccer teams, as well as give the area “national and global exposure.” The funding is subject to an anticipated appropriation of funds in the fiscal year 2025 state budget.

Harrison Mayor James Fife said that while he isn’t opposed to the NJSEA funding the upcoming match he does not want public funding of such matches to become a future trend.

He pointed out that the Red Bull corporation doesn’t need a handout from the state of New Jersey.

“I don’t think there should be any public entities giving money to anybody for stuff like that,” Fife said. “Red Bull is a multi-billion dollar corporation and those two (teams will) probably sell out the arena.”

Forbes and Bloomberg reported that the energy drink giant, which owns both RB Leipzig and the organization that operates the Red Bull Arena, is valued at $18.9 billion. Red Bull Arena is home to the New York/New Jersey Red Bulls of Major League Soccer.

RB Leipzig is one of the top teams in Germany, having won the DFB-Pokal Cup in 2022 and 2023, while Aston Villa is one of the top teams historically in England, winning the Football League First Division seven times along with other tournaments.

NJSEA spokeswoman Colleen Mercado said Red Bull Arena will use the $750,000 to offset the cost of bringing in Aston Villa for the event.

“Additionally, the state will benefit from national and global exposure through various channels including television broadcast, in-game marketing, and social media promotion,” Mercado said.

Public subsidies for the sports industry is not uncommon across the country, with state governments dishing out billions in taxpayer money for new sports stadiums.

Asked why Red Bull isn’t paying for the $750,000 itself, Mercado said it “remains responsible for a majority of the costs of the event,” but that “on occasion the NJSEA provides assistance to New Jersey venues to help attract and secure marquee sporting events (that) benefit the state by increasing tourism, generating significant tax revenue and facilitating job creation.”

Fife said events at the arena cause traffic backups of 15 to 20 minutes and there are also complaints about cars parking in residents’ driveways or getting towed. He did acknowledge that the arena brings economic benefits, such as people eating at local restaurants or using parking lots.

Hudson County Assemblyman Julio Marenco (D-North Bergen), whose 33rd District includes part of the Meadowland District, voiced his support for the $750,000 award to Red Bull Arena, saying that “public funding for such events can drive growth and community engagement, setting a positive precedent of future investments in sports.”

The region will soon see the biggest soccer tournament on earth land at its doorstep, with the 2026 World Cup set to have multiple games at MetLife Stadium in East Rutherford, including the final.

Asked whether it will spend more money on similar events in the future, including the World Cup, Mercado said the NJSEA “looks forward to helping to deliver exciting and entertaining events at various venues throughout the state, including in its role as a host city partner with New York City for (the World Cup).”

A Red Bull Arena spokesman declined to comment, referring all questions to the NJSEA.

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