Excitement and anticipation has engulfed Nevada following the reports that a new football stadium could soon grace the Las Vegas Strip. On August 26, the Las Vegas Review Journal reported that a 62 acre piece of land belonging to a consortium of banks from New York and Dallas was favored as the venue to host the proposed $1.9 billion, 62,000 sitter football arena. The cost of land, and undisclosed site infrastructure is expected to cost between $350 million to $400 million. The banking consortium that owns the land includes Credit Suisse Management, Barclays Bank, NexBank, and Highland Capital Management.
The swathe of land favored lies west of Mandalay Bay and Interstate 15. The deal, whose final details are yet to be revealed, is a partnership between Raiders Football Team, Las Vegas Sands Corporation and the state of Nevada. As things stand, if the plans come to fruition, a company called Majestic Realty will be tasked with the construction. Owing to the ongoing revelations, Raiders are expected to formally write to the football governing body, the National Football League (NFL) to request for permission to relocate the franchise to Las Vegas from its current home in Oakland Alameda Coliseum in California.
According to the current rules, any NFL team that submits a request for relocation must garner 75% support of the NFL club owners. This means Raiders owners and its partners must ready their pitch when the club owners meet next, on January 2017. The current Oakland multi-purpose stadium was constructed in the mid 60’s. The stadium is shared by a professional baseball and football clubs; the football and baseball stadiums have a seating capacity of 56,000 and 35,000 respectively. With the plans to have Raiders play in Oakland in the next 4 to 5 years looking diminished.
The owner of Raiders Football Team, Mark Davies has already made it clear that his team will definitely move to Las Vegas if the city and state support its bid. According to a report obtained by CBS Sports, Mr. Davies has been doing rounds in Las Vegas to get the much needed financial node. Things moved a notch higher when the Raiders presented Southern Nevada Tourism Infrastructure Committee (SNTIC), its new stadium presentation with high spirits. Supporters of the proposal want Nevada to shore up support by approving to the largest subsidy ever awarded by a state in the history of professional football.
The latest group to support the proposal is the Nevada Resort Association. On the opposing camp is the Nevadans for Common Good and the Nevada Taxpayers Association. Part of the demands made by the Raiders to the state authorities, in order to approve the highly anticipated move is a mandatory request to the state to chip in $750 million from its public coffers. The President of the Sands, Mr. Ron Goldstein told the press that anything less than the proposed amount will be rejected.
In the current state of affairs, the state has so said it is only willing to commit between $550 million to $600 million of the proposed amount of $1.9 billion. Raiders are expected to fork out $500 million, Sands $750 million and the state of Nevada $750 million. Mr. Mark Badain has assured the authorities in Las Vegas that his franchise will sign a lease that will run in tandem with the debt duration. In addition to accounting for every dollar invested in the new stadium to subvert detractors and allay fears of relocating in the near future.
Stadium Design and Amenities
The rendering of the new stadium looks eerily similar to the one earlier proposed by Raiders for the new Carson California stadium, which is now hanging. The LA rendering features an eternal flame designed in memory of Al Davis, the former owner of the franchise. The other outstanding features include sun roof, curving facade, modern raked seating arrangement, large operable glass facades, leisure areas and standard playing ground. The rendering was unveiled by the Kansas City based Manica Architecture. Before the plans for the construction of the new stadium begin, Raiders, Sands and other stakeholders will have to await the approval of the Nevada State Legislature.
SNTIC is expected to forward the $750 million request to the legislature to fulfill its part of the deal. The state governor, Brian Sandoval has already granted SNTIC an extension to make a decision on the final stadium location and stadium proposal. If the proposal is shot down, Raiders may be forced to remain in Oakland or somewhere in LA. On the other hand, if the project is approved the taxes from the member of public in Nevada will be accessed through specially set taxation district and hotel room tax. Unlike the densely populated, where land is hard to come by, Las Vegas appears to be favored because its subdivisions offer more developmental opportunities for grand projects.
The Oakland Raiders have had a checkered past in and out of the field since it was founded in 1960. According to Ticket City, the franchise’s first home field was the Kezar Stadium in the Bay Area. During their first two seasons in the league, the club struggled financially until 1964, when Al Davies came in as the coach. In 1967, Raiders beat Houston Oilers to capture the AFL Championship to earn a ticket to Super Bowl II Finals, where they played and lost to the much fancied Green Bay Packers.
A few years later under Coach John Madden, the franchise recorded a string of successes, chief among them winning Super Bowl XI for the first time in 1976. Between 2000 and 2002, the California based franchise made an appearance in Super Bowl XXXVII, but lost 48 – 21 to Tampa Bay Buccaneers. To date, the franchise has won 3 Championships. On the business side of things, a report published by Forbes in September 2016 shows that the club is valued at $2.1 billion. Its annual revenues and player expenses stand at $300 million and $170 million respectively.