Nov 13, 2017 ground was broken on a 62-acre lot of dirt. The $2 billion Allegiant Stadium now is the latest addition to a changing Las Vegas skyline.
Workers met the targeted completion date of July 31,2020. Major construction on the 65,000 seat home of the Raiders is complete. Described as a “Field of Dreams,” by Raiders owner Mark Davis may be an understatement. Since moving to Las Vegas the value of the Raiders Football Franchise has increased by over $1 billion dollars.
Not only is Mark Davis experiencing an unbelievable windfall but the Raiders were Homeless when Las Vegas made the crazy offer to a team that had nowhere to go.
The Raiders' contribution is expected to include a $650 million loan from Bank of America, $200 million from the NFL's stadium loan program, and $300 million from sales of personal seat licenses at the stadium, naming rights for the stadium Allegiant Stadium), and sponsorships. In addition to this revenue and loans the State of Nevada is on the hook.
Nevada legislature will be the largest stadium subsidy in American sports history. Levied taxes will cover $750 million, and the rest will come from private investment. The levied taxes were suppose to come from a Casino Room Tax.
“Promising the Raiders the world to leave Oakland for Las Vegas was rushed through, poorly thought out, and premature.
“NFL stadiums do not generate significant local economic growth,” says Stanford economics professor Roger Noll. “And, the incremental tax revenue is not sufficient to cover any significant financial contribution by the city.”
The stadium will not be funded by direct taxes on Las Vegans – instead, funds will be drawn via an increase on the tax on hotel rooms. Currently, that room tax goes to support state schools and county transportation – the Las Vegas Raiders era will also usher in funding cuts to local schools and buses.
Now with the COVID-19 impact on Casino revenue and occupancy, who is going to pay for the Raider Fiasco?
