The Raiders Are Coming! Nevada approves $750m Stadium fund

Sheldon Adelson is a billionaire businessman with a lot of influence, both politically and fiscally (not physically). As such, when he wants something, he usually gets it. Recently, his desire has been to bring an NFL team to Las Vegas – particularly the Oakland Raiders – and Nevada officials have just granted him his wish.

Not only did the state approve the extra $750 million needed to fund the construction of the Las Vegas NFL stadium, they’ve given Adelson’s Las Vegas casino corporation, LVS, exclusive rights to manage the construction phase. I suppose that only seems fair, since Adelson is reaching into his own bulging back pocket to produce $650 million of the projected $1.9 billion cost.

Where is the last $500 million coming from, you ask? That’s where analysts are pretty certain the Oakland Raiders will be the team to fill the new dome, as they have committed to paying the remaining half-billion, so long as Nevada approves the $750m funding plan. The (soon-to-be? Las Vegas) Raiders will use equity and a loan from the NFL, should their request for relocation be approved.

And where is that $750 million going to come from? It’s doubtful Nevadans would have been willing to contribute their own hard earned cash towards the project, so that idea wasn’t even placed on the table. Instead, Adelson himself proposed that the state generate that money through a slight increase of Clark County’s hotel room tax.

Las Vegas Casino Goers To Pay For It

That’s right – tourists will be footing the bill. They’re already been struck with menial fees and taxes atop just about everything they do in Las Vegas. Might as well hit them up for a wee bit more – 0.88% more, to be exact.

The existing 12% hotel room tax will be raised to 12.88%, which should be just enough to collect the entire $750 million needed over the next 30 years.

Las Vegas NFL Stadium Management Pending

Adelson doesn’t intend for his Las Vegas casino corporation to maintain operation of the NFL stadium. Building properties and running casinos is more his forte. So instead, his Las Vegas Sands Corp will oversee the construction process, and once the domed, 65,000-seat stadium is complete, management will be turned over to an as-yet realized Stadium Authority Board.

The SAB will be made up of 7 members, who will be collectively appointed by the stadium’s developers, the Clark County Commission, and Nevada Governor Brian Sandoval.

Adelson Clarifies, He Can’t Keep The Money

Being a highly publicized billionaire – Forbes estimates his worth at $28bn – to help garner support for his plan, Adelson apparently felt it was necessary to clarify that he won’t get to keep any of the money.

“The money that is being sought from the government is not coming to me. I think it should be clear that a billionaire is not looking for money from the public,” Adelson said. “I am only doing this in the interest of community development. And I am taking the risk on the cost above whatever is committed.”

The risk for the Las Vegas casino magnate was undertaken when he agreed to cover any additional costs to build the NFL stadium. Should the $1.9 billion estimated project go over budget, Adelson will be required to go back into his personal bankroll to make ends meet.