Wisconsin Gov. Walker announces $500M financing deal for new Bucks arena

The Milwaukee Bucks are one step closer to securing their future in Wisconsin.

Wisconsin governor Scott Walker announced a deal Thursday that would see taxpayers provide $250 million toward a new arena facility for the Bucks.

At least $250 million of the $500-million project will come from the team's ownership group. New owners Marc Lasry and Wesley Edens had already pledged $150 million, with former owner Herb Kohl also kicking in $100 million on his way out. Under the deal, the Bucks will be responsible for any cost overruns.

Walker's announcement came at a press conference Thursday attended by members of both political parties and all but ensures the future of the Bucks will be in Milwaukee.

As part of the Lasry-Edens purchase, the NBA retained the right to buy the franchise back at a favorable price if a new arena wasn't in place for 2017. The timeline for completing the project remains tight two years out, but a deal could be a strong enough show of faith from the state and county for the league to decline pursuing that course of action.

The Bucks and Walker had run into some opposition at earlier stages of negotiations, with taxpayers bristling at the idea of footing the bill. The deal will see taxes increased on hotels and rental cars to recoup some of the investment, with Walker - a likely Republican presidential candidate in 2016 - adamant that the state funding the arena in this way will see the public earn a return on their investment.

The upside with such a large undertaking, which at times had included an accompanying $500-million downtown entertainment district, is job creation and a re-invigoration for the downtown core. That's been the crux of Walker's push for a deal - "Cheaper to Keep Them" has been a rallying cry - concern that the loss of income-tax revenue if the Bucks left would hurt the state far more than helping fund a new facility would.

Bucks president Peter Feigin released the following statement on the proposal:

We're incredibly thankful for the leadership and commitment of state, city and county officials to put together a viable financing framework for this public-private partnership to build a new sports and entertainment district in Wisconsin. While there is still a lot of work to be done in a short time frame, this is a big step forward in our collective effort to build a transformative economic and cultural asset in downtown Milwaukee. We will continue to work closely with our public partners to make sure this historic effort is successful.

The announcement didn't make it immediately clear if the public could wind up paying more than $250 million once borrowing and interest costs are considered.

It's also unclear if the deal will be voted on as part of the two-year, $70-billion state budget or if it will be introduced as a separate bill. The current expectation is for the deal to be a part of the budget, but it's possible the Republicans get their preference and a separate introduction winds up being the course.

The Bucks currently play at the BMO Harris Bradley Center, a 27-year-old facility that would have required substantial upgrades to bring it into the modern era of NBA arenas. The Bucks entered the NBA as a Milwaukee-based expansion franchise in 1968, quickly winning a championship in 1971.

Bucks fans were set for a Save Our Bucks rally on June 9, which may be canceled or turned into a support rally following Thursday's announcement.