UNLV stadium would turn $14m annual profit, if you ignore how to find $714m to build it

Anybody want to read a stupid article? Sure you do! Here, let’s start with the headline:

UNLV stadium could generate up to $13.9 million in profits, report says

As a refresher, that’s the domed college football stadium that University of Nevada–Las Vegas wants to build, and wow, that would be a pretty impressive profit for a stadium costing several hundred million dollars at a school whose football team can’t win games or draw flies. How would it manage that, exactly?

An enclosed stadium would create $23.1 million to $26.3 million in total annual income, while total expenses to operate the retractable-roof or domed venue would be $11 million to $12.4 million, according to the draft prepared by Dallas-based consultant CSL.

Meanwhile, an open-air stadium would generate $15.9 million to $18.1 million in total annual income, while expenses would be $8.9 million to $9.9 million, according to the report.

So, wait, it would just generate $13.9 million in operating profits, then? In other words, not counting the cost of building the damn thing in the first place? How much would that be, anyway?

The consultant also tweaked the proposed costs for the retractable roof stadium, ratcheting it up to $714 million from a previous projected cost of $682 million.

The last previous projected cost I recorded was $900 million, but no matter: Either way, we’re talking about close to $50 million a year in debt payments, which would eat up that $13.9 million in profits and then rampage across the university’s budget like you know who. Unless, of course, the university finds a way to fob off the construction costs on somebody else, which is just what UNLV is trying and so far failing to do.

Anyway, surely this stupid article somewhere mentions that the stadium would need to be paid for, which overall would leave it awash in red ink, right?

“It’s nice to see that the (proposed UNLV) stadium is in the black.” said [stadium board member Kirk] Hendrick, chief legal officer for Ultimate Fighting Championship, the Las Vegas-based MMA fight show and promotion company. “Otherwise, it would be a short conversation.”

Stupid article.


4 comments on “UNLV stadium would turn $14m annual profit, if you ignore how to find $714m to build it

  1. I think you neglected to include a link to the stupid article:

    http://www.reviewjournal.com/news/unlv-stadium-could-generate-139-million-profits-report-says

    I’m glad to see that a few of the commenters picked up on the missing debt cost.

  2. Of course those debt payments are over in some other account, like the capital account or some such, so we don’t have worry about that. Nor do we have to consider what some other investment of $900 million could have brought in return to UNLV.

  3. They should build it. UNLV could be expanded into the pac-12 one day 15 years from now. USC would love to play in that nice venue and schedule that W every year.

    If they do built it, it will have to be heavily funded with private money, so maybe Venetian/Palazzo owner Sheldon Adelson will chip in and name the stadium after him self since he’s worth more than 40 billion. and although this diminishes the value of a dollar: its like a man with 40 million donating a million. happens all the time. It beats wasting hundreds of millions of dollars backing losing politicians like he has a track record of

    Maybe we can all agree that a stadium is more noble than wasteful campaign contributions that were proved to be entirely futile.

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