Oakland Raiders $1 Rent NFL Lease Proposal Will Put Las Vegas Stadium Authority In Deficit
Oakland Raiders. The Las Vegas lease proposal to the Las Vegas Stadium Authority proves what Oakland and Alameda County have known for years: give the Raiders a chance to take what you have, and they’ll do it. The Raiders want it all for them, and as little for you as possible.
In the case of the 107-page Las Vegas Lease Proposal, which this blogger went through, there are several problems, among them the fact that there’s a rent charge of just $1. That’s right. The Oakland Raiders, which are paying a $1 million rent at the so-called old and run-down Oakland Coliseum, are proposing to pay a rental fee of $1 to the Las Vegas Stadium Authority, and also stick them with other stadium operations costs, including utilities and Internet, while keeping all naming right and sponsorship monies.
The Oakland Raiders must take the Las Vegas Stadium Authority staff for suckers who have never negotiated a stadium lease before, and want the NFL to approve the Raiders’ relocation so bad, they’ll agree to sell their souls to the devil if that’s what it takes.
A $1 rental agreement on a $1.9 billion, retractable roof stadium. By contrast, the Houston Texans, which benefit from hotel tax financing, and have a retractable roof, have a $1.5 million annual rent in a lease that lasts to 2031. Indeed, the AECOM study for the proposed Las Vegas MLS Soccer Stadium recommended an annual rent of just north of $4 million.
The bottom line is, considering all of the costs the Las Vegas Stadium Authority is being asked to assume in the Oakland Raiders proposal, the LVSA will wind up running a deficit after its’ first year of operation. There’s no spreadsheet scenario where the LVSA comes clearly into the black under the Raiders proposal.
That’s not the way it’s supposed to be, and anyone on the staff who would claim that this is the only way to do it because of the bond issue either doesn’t know what they’re doing, or is not telling the truth. As them why the Houston Texans Stadium, site of Super Bowl 51, pays a $1.5 million rent to its stadium authority, and also has a hotel-tax-supported financing structure?
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