NFL
Oakland. And he didn’t kick up a public fuss when the NFL rejected his request to move the franchise to Southern California. Oakland is a bigger, more lucrative market for the NFL, which would like to stay there. But you can’t make a franchise work in the Coliseum, and no one is offering millions to build a new stadium there. Q: Why Las Vegas? A: $750 million. That’s the amount of public financing in place for a new stadium. These days, raising $7.50 in public money is difficult enough for sports franchises (right, Diamondbacks, Coyotes, Suns?). The NFL is not going to leave that on the table. Some professional sports executives think Las Vegas is a soft market, despite the lights and glamour of the casinos. We’re about to find out if they’re right. Q: How is the $750 million being raised? A: A hotel tax. So, yes, that weekend excursion you planned will be a tad more expensive.
Q: What about gambling? Wasn't that always a problem with the NFL?
A: That's so 10 minutes ago. The NFL has embraced fantasy football and it seems every major metropolitan area in the country has at least one casino nearby. Q: A stadium is only $750 million? A: No, try $1.9 billion for a stadium that seats around 65,000. Here’s where things get tricky. Davis is among the least-rich NFL owners, so he needs help to make this work. Bank of America is loaning $650 million toward construction, and there is speculation the NFL is backing that loan. Davis and the Raiders are contributing another $500 million, which includes a $200 million loan from the NFL. Davis could raise the money by selling seat licenses, naming rights, etc. In addition, Sports Illustrated reported the NFL is giving Davis a break on the relocation fee. He’ll reportedly pay $325 million, about half the amount the Rams and Chargers are paying to move to Los Angeles. Q: Does the math add up? A: Depends on who you ask. Nevada officials think new visitors will come to town to watch NFL games. The Raiders have an ardent following nationwide, but especially in the Bay Area and Southern California. Las Vegas is a short plane ride away. And when the Raiders play, say, Denver, thousands of Broncos fans will travel to Las Vegas. Nevada is projecting the Raiders will bring around 450,000 new visitors annually.
But economic impact studies are notorious for skewing in favor of the entity sponsoring them. Critics think Nevada and the NFL are being overly optimistic. Will that many "new" people really come to Las Vegas? We're about to find out. Q: Do the Raiders have the votes? A: It looks like it. It would take nine “no” votes to reject the deal, and no one thinks there are that many out there.
Q: So if the NFL approves, when do the Raiders play in Las Vegas?
A: Not until 2019, which will make the next two seasons in Oakland a bit awkward. Sam Boyd Stadium, where UNLV plays, seats only 36,000 and would need significant upgrades before an NFL game is played there. It would make sense for the Raiders to at least move to Las Vegas a year before the new stadium opens.