Hey, remember how Oakland Raiders owner Mark Davis proposed paying $1 a year rent to the state of Nevada in exchange for $750 million in stadium subsidies, and we all thought, “Okay, sure he’s going to ask for that, but there’s no reason the state stadium authority needs to take him seriously”? Well, the stadium authority board chair now says $1 a year rent sounds just fine to him:
“It’s based on the fact that the Raiders are going to be investing up to $1.15 billion and certainly taking the risk for any overruns,” board chairman Steve Hill said after the meeting. “So, in order to make that agreement make financial sense, the revenue from the stadium needed to flow to those investors.”
Yes, Davis and his private investors are putting up a lot of money. You know who else is putting up a lot of money? The people of Nevada. And where Davis’s side will have lots of revenue streams like all of the naming rights and ad sales from the stadium to help pay off their share, the state will only have whatever new tax money flows from tourists who weren’t going to go to Las Vegas just because it’s Las Vegas, but now will because it’s Las Vegas with the Raiders, about which sports economist Roger Noll has already said don’t hold your breath. But hey, the main concern of state officials is to cut deals to ensure the profitability of private corporations, right? I’m pretty sure I read that somewhere.
It’s up to the stadium authority to determine and sign the lease, with no further input from the state legislature, so Nevada taxpayers are probably doomed. One hopes that at least they’ll manage to get an ironclad non-relocation clause without any “state of the art” loopholes, but with bright lights like Hill in charge, one shouldn’t hope too hard. Too bad Las Vegas doesn’t have anyone living there who has experience negotiating exactly these sorts of clauses and could be brought on to consult on this.