If there’s one key point I’ve tried to hammer home about how elected officials should approach stadium deals, it’s: Don’t just focus on the headline number for construction costs! It’s the lease details, stupid! Otherwise you can end up giving up hundreds of millions of dollars on the back end, via lost parking fees or future maintenance expenses or what have you.
The Nevada legislature clearly hasn’t been listening to me, because Oakland Raiders owner Mark Davis just revealed details of his lease demands for his new Las Vegas stadium, and they are, shall we say, the kinds of things you might have wanted to talk about before approving $750 million in subsidies:
- The Raiders would pay $1 a year in rent.
- The team would receive 100% of naming rights from the stadium.
- The team would receive 100% of advertising sales at the stadium.
How much of an additional subsidy would this be? While there’s no established baseline for fair-market rent, let alone a fair-market split of naming rights, I’m told the state was expecting to get an $8.2 million cut of those revenue streams to help defray its own costs. Giving that up is worth about $130 million in present value, so if we consider that to be a new ask, then the Raiders’ total subsidy would now stand at $880 million.
Of course, if the state was really counting on that money, it might have wanted to ask for it, you know, before approving the first $750 million. The Nevada Stadium Authority is scheduled to begin discussing Davis’s lease demands next month; if they end up rejecting them and telling him to take his team and go play in the street — not likely, but could happen — that might be the best outcome for all concerned, except for Davis, obviously.