The Nevada Legislature this week will convene a special session to consider public financing for a proposed 65,000-seat, $1.9B domed stadium in Las Vegas, and if it "approves the funding bill, the Raiders will ask NFL owners to vote to allow the team to move" to the city, according to Matt Youmans of the LAS VEGAS REVIEW-JOURNAL. However, construction funding is "only one part of the stadium plan lawmakers will examine," as the deal "hinges on the operating structure of the stadium, the dome attracting events besides NFL games, the revenues the stadium would generate and how that money is split." The Raiders' valuation "already has jumped" nearly 50%, based largely on the proposed stadium and the "new revenue sources the venue will create." The Raiders' revenues from the new stadium are projected to hit $128.9M in the first year of operations -- likely in '20 -- and would "stem primarily from the sale of suites, tickets, concessions, local media broadcast rights and stadium naming rights." Las Vegas-based financial consultant Applied Analysis Principal Analyst Jeremy Aguero "modeled the stadium revenue projections that were displayed" at this summer's Southern Nevada Tourism Infrastructure Committee meetings and will be presented to the Legislature. The aggregate event revenue in the stadium's first year is estimated at $263M, and "including nonevent revenue, such as naming rights, the total is close" to $290M. How the revenues are shared among the Raiders, Las Vegas Sands Chair & CEO Sheldon Adelson and his family and the stadium operating company "will be negotiated among those sides." After expenses, the net operating income -- projected to be $20-25M in the first year -- "would be the return for the stadium developers." Aguero said the No. 1 benefit for the Raiders is "increase in value of the team" (LAS VEGAS REVIEW-JOURNAL, 10/9).
MAN WITH A PLAN: The WALL STREET JOURNAL's Alexandra Berzon notes the proposed Las Vegas stadium is "part of what may be the biggest-ever push" by Adelson. Many of Nevada's "most important interests -- including rival casino owners, construction labor unions and the state university system -- are backing Adelson's stadium plan." A public entity "would own the stadium, but revenue from it would go to Adelson's development and operations group." Nevada Governor's Office of Economic Development Dir Steven Hill said that the "estimated annual return to Adelson, after expenses, would be about" $20M a year. Las Vegas Sands Senior VP/Government Relations & Community Development Andy Abboud said that Adelson is "expecting a low rate of return, but wants to be involved in the project because he believes it would benefit the community" (WALL STREET JOURNAL, 10/10).
