D.C. United wasn’t the only MLS franchise to win a big public stadium subsidy yesterday — or at least, not if you count wannabe MLS franchises as well: The Las Vegas city council voted 4-3 yesterday to approve $56.5 million in stadium subsidies and related infrastructure costs for a new stadium to host an as-yet-unnamed, as-yet-nonexistent MLS team that would begin play at an unspecified time. Add in $20 million for a parking garage that will be used by stadiumgoers (for which the team will get to keep parking fees for soccer matches), free land appraised at $38 million to $48 million, plus a full property tax abatement worth between $8 million and $16 million in present value, and you’re talking between $122 million and $140 million in public subsidies, or enough to be the biggest soccer stadium subsidy in U.S. history, if only D.C. United hadn’t set a new record the same day.
It’s absolutely the biggest subsidy ever for an MLS team that doesn’t exist yet, though, so Las Vegas, take a bow!
Meanwhile, it’s worth noting that though the Las Vegas Review-Journal has done some excellent reporting on this deal, it’s still prone to the kind of misunderstanding of basic financial math that plagues too much development reporting. Check this out:
To pay off a $50 million bond, the city would have to borrow $90 million to pay the interest on the loan.
If anyone can identify what that’s supposed to mean, please let me know.