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Las Vegas Stadium Authority Has Budget Deficit As Of July 2019 Agenda

Las Vegas Stadium Authority Has Budget Deficit As Of July 2019 AgendaLas Vegas Stadium Authority Has Budget Deficit As Of July 2019 Agenda

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(Last Updated On: July 16, 2019)

Las Vegas Stadium Authority Has Budget Deficit As Of July 2019 Agenda

 

ONN – Las Vegas Stadium Authority Has Budget Deficit As Of July 2019 Agenda

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The Las Vegas Stadium Authority is running a budget deficit of a quarter-of-a-million-dollars according to the latest report issued before the July 18th meeting of the group formed to build the Oakland Raiders and University of Nevada-Las Vegas new domed stadium.

The overall budget (or expected) revenue is at $111,405,016 versus actual revenue of $111,163,348, for a difference of a negative -$241,669 or two-tenths of one percent.

Rolling Average Las Vegas Stadium Hotel Tax Revenue

Rolling Average Las Vegas Stadium Hotel Tax Revenue

That marks the first time in the short history of the Las Vegas Stadium Authority that there has been so much of a shortage in expected hotel tax revenue that the organization could not avoid the truth that it was not taking in enough money.

According to the latest report, monthly revenue by jurisdiction is down in the largest areas of Las Vegas Valley represented in the area of hotel tax collection controlled by the Las Vegas Stadium Authority: Clark County, Las Vegas, and Henderson, and at 4.2, 4.5, and 4.1 percent for March when 2019 and March 2018 are compared.

Why Does This Las Vegas Stadium Authority Revenue Problem Exist?

So, why does this Las Vegas Stadium Authority revenue problem exist? The answer is that after a ten-year pattern of year-over-year growth in visitors to Las Vegas, the party happened to stop in 2017, the same year the NFL approved the Raiders to move from Oakland to Sin City, and the same year the Clark County Stadium Hotel Tax started to be collected and tallied.

The Raiders, then, were and still are, the victims of very bad timing. The drop of visitors and the resultant depression in stadium hotel taxes collected was something that was structural.

To put it simply, today, anyone living in any city in America is at most one-hour from a casino. That hurts Las Vegas. Add to that the nose-bleed resort fees, and many Americans have a great incentive to go somewhere else other than Las Vegas to do their gambling. And that fact extends to the rest of the World, and in particular, Asia.

When that’s considered, one would have to agree that to base the financing for the Las Vegas Stadium primarily on hotel taxes and one large private loan from Bank of America is a massive mistake. Indeed, the original financing plan for Las Vegas Stadium was to include a tax-increment-financing zone of 25 miles in diameter, but it was removed from the final legislation because Sheldon Adelson said he would pay for all “cost overruns or unanticipated shortfalls“.

Then, Adelson dropped out of the Las Vegas Stadium project on February 26th, 2017, and after claiming that Oakland Raiders managing partner Mark Davis was trying to double-cross him.

So, while Bank of America stepped in with a $600 million line of credit, it’s money the Raiders have to pay back.

The next question is how will the Las Vegas Stadium Authority Board deal with this problem, now that it’s an obvious problem?

Stay tuned.

Oakland News Now Note: this video-blog post demonstrates the full and live operation of the latest version of an experimental Zennie62Media mobile media video-blogging system network. This is a major part of our new approach to the production of news media. The uploaded video is from a vlogger with the Zennie62 on YouTube Partner Channel, then uploaded to and formatted automatically at the Oakland News Now site and Zennie62-owned social media pages. The overall objective is smartphone-enabled, real-time, on the scene reporting of news, interviews, observations, and happenings anywhere in the World and within seconds and not hours. The secondary objective is faster, and very inexpensive media production and distribution. We have found there is a disconnect between post length and time to product and revenue generated. With this, the problem is far less, though by no means solved. Zennie62Media is constantly working to improve the system network coding and also seek interested content and media technology partners.

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Zennie Abraham
Zennie Abraham is the CEO of Zennie62Media
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