Sheldon Adelson’s plan has the city of Las Vegas paying $250 million more than Gov. Brian Sandoval’s plan.
Local casino billionaire Sheldon Adelson has asked the city of Las Vegas to pay $750 billion for an NFL-ready stadium. If Sin City ponied up the cash for the stadium, it would be the single-biggest financing scheme in the history of the National Football League.
Already, Oakland Raiders owner Mark Davis has offered to pay $500 million for the Vegas football stadium. Under terms of the plan, another $540 million would come from private investors. Sheldon Adelson at one time offered to pay $150 million, though that offer is not seen in Adelson’s current plan. It is possible his contribution would be among the $540 million from investors, though.
How to Plan Works
Las Vegas would be left with the remaining $750 million of the bill. The outlay would be paid by municipal bonds, which would be bought by whomever chose to invest. The bonds would be paid by a 0.9% tax on hotel rooms, which equates to $1.08 per night for everyone visiting Las Vegas.
The plan is to build a 65,000-seat, state-of-the-art stadium. The ultimate price would be $1.79 billion. Majestic Realty Company teamed with Adelson’s gaming company, Las Vegas Sands, to draw up the plans.
Indianapolis Stadium Funding
The previous largest amount paid by a municipality for an NFL stadium was the city of Indianapolis, which paid $620 million in order to build the 62,400-seat Lucas Oil Stadium back in 2005. New NFL stadiums built in Indianapolis, Dallas, and New York City over the past decade have received a Super Bowl, to help offset costs of construction.
Brian Sandoval’s Plan
The release by Sheldon Adelson and Majestic Realty on Friday was a response to a presentation before the Southern Nevada Tourism Infrastructure Committee on Thursday, when representatives for Gov. Brian Sandoval met with the committee. Under the Sandoval Plan, the city would pay $500 million and private contributors (Davis and investors) would pay $900 million.
Thus, it appears the Sandoval Plan and the Adelson Plan are going to compete for favore with the Tourism Infrastructure Committee. The debate can be seen as a measuring stick of whether the Nevada governor or the state’s richest citizen have more power and influence.
Sheldon Adelson’s Wealth and Influence
Sheldon Adelson is estimated by Forbes to be worth $25 billion. That is down from the $38 billion or $39 billion Adelson was worth at the beginning of 2014, but is still fabulously wealthy by any standards. Adelson’s Las Vegas Sands Corporation owns the Sands Las Vegas, Venetian, and Palazzo. LVS also owns the Sands Macau and the Venetian Macau, which may be the richest casino in the world. The company also owns the Marina Bay Sands in Singapore, a 2-casino city which draws the 3rd-most revenues of all cities in the world (behind Macau and Vegas). Besides that, Sheldon Adelson owns a media empire in Israel.
In November 2015, Sheldon Adelson bought the Las Vegas Review-Journal, the Nevada newspaper with the biggest circulation. Many at the time speculated that Adelson was purchasing the struggling newspaper to have it serve as a mouthpiece during the 2016 US Presidential Election. Adelson had suggested he would spend up to $100 million on donations to the Republican cause in the election.
It is just as likely that Adelson bought the Review-Journal to have a voice in state and local politics. In a March 2016 editorial, the Review-Journal’s staff claimed the NFL stadium was “one piece of tourism infrastructure” which was missing in Las Vegas. Given the specific use of the term “tourism infrastructure”, it was clear that the editorial was directed at the Southern Nevada Tourism Infrastructure Committee and those who would speak before it.
The Oakland Raiders Search for a Stadium
The Oakland Raiders are unhappy with their current deal with the 56,000-seat Oakland-Alameda County Coliseum. The Coliseum was built in 1966, so it was designed for a previous era of fan interest. Without the box seating and other modern amenities, the Raiders are apt to struggle with cashflow.
The city of Oakland has so far declined to build the Raiders a new stadium. Mark Davis, son of the late Al Davis, sought approval from the NFL to move to Los Angeles. That initiative failed, because the NFL awarded Los Angeles to the St. Louis Rams and San Diego Chargers. Now, Las Vegas appears like the best choice for the Raiders, whose maverick image likely would mesh with a city known for card sharps, mobsters, and con men.
Las Vegas Sports Franchises
Las Vegas last week received an NHL franchise, so the idea that Vegas is not safe for major pro sports no longer appears to be an issue. Multiple media sources have written op-ed pieces in the past year, suggesting the culture has changed and pro sports in a gambling capital is no longer a concern.
