Are Rates at Vegas Hotels Rising to Pay for Local NFL Stadium?
The proposal to bring an NFL stadium to Las Vegas is no surprise; however, the fact that some of the funding for this $1.9 billion project is expected to come from the public may be shocking to some.
In March 2016, the Southern Nevada Tourism Infrastructure Committee proposed a plan to bring a NFL stadium near the Las Vegas Strip. The proposal initially suggested that over $700 million for the project come from public funding. As a result, the committee recently voted in favor of a plan to increase hotel room taxes in Las Vegas to help pay for the proposed stadium. Under the current development plan for this 65,000-seat stadium, about $750 million needs to be paid by the public.
It has been rumored that the Vegas stadium may be the new home for the Oakland Raiders. This rumor got some validation in August when the Raiders applied to the U.S. Patent and Trademark Office to register a trademark for the “Las Vegas Raiders.” If the NFL owners allow the Raiders to move to Vegas, the Raiders will contribute $500 million towards the new stadium. The remaining funding is expected to be covered by casino businessman Sheldon Adelson’s corporation, Las Vegas Sands Corp, and Majestic Reality Co.
Despite this expensive funding, the stadium is expected to bring many positive changes to Las Vegas. In addition to possibly being the new home for the Raiders, the stadium will also be used by the University of Nevada Las Vegas Rebels. Although Vegas already hosts millions and millions of visitors each year, the Sands and the University expect this stadium to bring more than $1 billion per year into the Las Vegas economy.
Although Vegas has never been the home for one of the big four professional sports leagues, the NFL is not the only professional league to take interest in Vegas. The NHL made the first move in June 2016 when it announced its plan to add an expansion team in Vegas, which is expected to begin in the 2017-2018 season.