The developers hoping to build a soccer stadium in Las Vegas have released a two-page term sheet outlining how the finances would work. According to the Las Vegas Sun, the split would be 74% public, 26% private, but city officials say once negotiations are finished it would be closer to 50/50.
It’s good that Vegas city officials are admitting that negotiations aren’t done, because man, is that one mess of a term sheet. As I noted in the Sun article, the stadium operating agreement gets just one line — “further legal review is needed” — which means that there’s no way to tell who will get revenues from naming rights and other stadium revenue streams, nor who will pay annual operating costs of the arena. As I also noted to the Sun’s reporter, but it didn’t make the published story, the plan includes $4.3 million a year in proceeds from “non-MLS events” — a figure that even the term sheet acknowledges is “on the aggressive (high) side” and which is probably downright crazy given the number of 20,000-seat venues already scattered around Las Vegas or in the works. And there’s no backup plan for what would fill that gap — which would cover about a third of the costs of the $200 million stadium — if the non-MLS profits don’t materialize.
Add in that there’s already a $28.6 million funding gap that needs to be filled, and this is not the most ironclad stadium financing plan ever seen. Hopefully there will be more actual numbers before the city council is set to take its first vote on the plan on August 20.