The BMO Harris Bradley Center is seen on the corner of 4th and State St. Credit: Mike De Sisti

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Wes Edens, a co-owner of the Milwaukee Bucks, says the idea of a jock tax to help finance the construction of a new, multipurpose arena in downtown Milwaukee is a good starting point for coming up with a workable plan.

"I think that how we actually pay for it and what the form of the financing is and kind of all the technical nuances at some point will be very important," Edens said in an interview with the Journal Sentinel. "To me it's less important today than just the notion that, let's just agree what's on the table with the benefit of the team being in town. Once we have done that, we've got a really useful place to start the dialogue."

A Legislative Fiscal Bureau report, written in late September but released by Assembly Speaker Robin Vos (R-Rochester) after the November elections, determined that capturing the income tax paid by National Basketball Association players and team employees could support approximately $150 million in state general-obligation bonding.

Using the tax year 2012, the Fiscal Bureau said the amount of taxes that could be captured totaled $10.7 million. Assuming a flat, 20-year repayment structure on the bonds, $10.7 million in annual revenue could support $150 million in state general-obligation bonding.

"The total 20-year cost to repay the $150 million in general obligation debt would be $214 million, which includes $64 million in interest costs," the report states.

The NBA says the Bucks must have a new arena by 2017 to replace the aging BMO Harris Bradley Center or risk losing the team.

Sources have told the Journal Sentinel that the franchise's preferred site remains the land owned by Journal Communications, publisher of the Milwaukee Journal Sentinel, the UW-Milwaukee Panther Arena and the Milwaukee Theatre, or some iteration involving those properties.

Edens and fellow co-owner Marc Lasry have committed $100 million toward a new arena. Former U.S. Sen. Herb Kohl, who sold the team, has also said he would put $100 million toward an arena, and additional private investment could bring the total commitment to $300 million.

Vos has said tapping into athletes' income is a viable option. Sen. Alberta Darling (R-River Hills), co-chair of the Legislature's Finance Committee, also agreed it is an option to be considered, especially because it doesn't tax the general public.

Outstate, some legislators are leery of backing the issuance of bonds for the benefit of a downtown Milwaukee arena. As for Gov. Scott Walker, he has said he will wait to hear details of a financing plan from elected officials, Bucks officials and civic leaders.

Edens emphasized that updated numbers on what the arena will cost, and what amount of public financing will be needed, are not known. The franchise's focus now, he said, is finding the best site for the arena.

But he acknowledged the potential of diverting the income taxes of athletes and team members could raise millions that could pay the debt service on state issued bonds.

"It does establish some real economic parameters," Edens said. "If the team and employees pay, whatever, let's say $12 million a year. ...Whatever it is, by the way, will roughly double over the next three to four years. With the salary cap going up. Then you're talking 20-something million in direct taxes that should be expected to increase fairly substantially over the next 25 to 30 years of whatever the useful life of the building is."

There is a flip side to the jock tax. If the Bucks cannot secure a new arena, the possibility exists the franchise would move. The sale agreement includes a buyback provision that allows the NBA to buy the team for $575 million, $25 million more than what Edens, Marc Lasry and Jamie Dinan paid for it.

"It's not really a disputable fact. If the Milwaukee Bucks are forced to leave town because they don't have an arena, those taxes are leaving with them," Edens said.

But even if the jock tax gets legislative backing and support from Walker, it also means money that would have gone to the state's Department of Revenue for budget purposes will instead be dedicated for debt service on a new arena.

Edens remains upbeat a plan will be found when the time is right. The Legislature returns in late January.

"I'm so optimistic there is going to be a good solution," Edens said.