Las Vegas Stadium Construction And Project Cost Is $3 Billion

(Last Updated On: July 24, 2019)

Las Vegas Stadium Construction And Project Cost Is $3 Billion – Zennie62 Live Talk

ONN – Las Vegas Stadium Construction And Project Cost Is $3 Billion – Live Talk

Even though the information has been out and on the website of the Las Vegas Stadium Authority since March, for some strange reason, The Las Vegas Review Journal elected to post the stadium cost this week – and got it wrong in the process (and that includes other media outlets reporting “Raiders’ Las Vegas Stadium cost hits US$1.9 billion”).

The real cost of the new home of the Oakland Raiders is far greater than $1.9 billion – and that estimate only included the assumed price tag of $40 million to add additional suites.

No. The reason cost of the Las Vegas Stadium Project as a whole is $3 billion, and within that, the Las Vegas Stadium Construction Cost Is $2.198 billion.

Regular readers of Oakland Now, and watchers of on know that this blogger has maintained his own spreadsheet of costs and revenues associated with Las Vegas Stadium – and using information released by the project’s own consultants as far back as the original Southern Nevada Tourism and Infrastructure Committee (SNTIC) that was established by Nevada Governor Brian Sandoval.

With that, here’s the latest estimates from the Media-maintained spreadsheet:

Oakland Raiders Las Vegas NFL Stadium Proposal Spreadsheet –
With Bank Of America Loan / Offsite Transit Infrastructure Cost
No Additional Debt Other than SNTIC Projection

Total Las Vegas Stadium Project Costs
Las Vegas Stadium Guaranteed Max Price Cost $1,620,091,530.00
Change Orders Plus Alterations (Extra Suites, Etc.) $298,000,000.00
Land, Infrastructure, On-Site Costs $179,908,470.00
Practice Facility $100,000,000.00
Contingency $100,000,000.00
Total Stadium Basic Costs $2,298,000,000.00
Offsite Transportation Infrastructure Costs Per SB1 / NDOT (Note 3) $100,000,000.00
Offsite Non-Transportation Infrastructure Costs / Parking Per Clark County $150,000,000.00
Total Stadium Development Cost $2,548,000,000.00
NFL Relocation Fee (Spread Out) $370,000,000.00
Total Project Cost $2,918,000,000.00

Funding Sources (Note 2)
Raiders Team Investment $500,000,000.00
Public Investment (LVSA / Clark County Bond Issue) $750,000,000.00
Private Investment (B of A Commercial Loan – 30 yr) $600,000,000.00
Additional Private – Public Investment $0.00
Total Funding Sources $1,850,000,000.00

Total NFL Stadium Project Net Operating Income -$1,068,000,000.00

SNTIC Model 30 Year Est
Est. Stadium Revenues (From SNTIC Docs – Note 4)
Total Annual Event Revenue $934,323,450.00
Total Annual Non-Event Revenue $309,632,820.00
Total Stadium Revenue $1,243,956,270.00

Est.Stadium Operating Expenses (From SNTIC Docs – Note 4) $646,119,390.00

Stadium Net Operating Income (From SNTIC Docs – Note 4) $597,836,880.00

Debt Service And Capital
Debt Service (From SNTIC Model times 30 yrs)
Bank Of America Dev Loan Debt (Loan + LIBOR) $624,840,000.00
Capital Expenditure $75,000,000.00
Total Debt Service And Capital $699,840,000.00

Free Stadium Operating Cash Flow -$102,003,120.00

Total Project Operating Cash Flow (TPOCF) -$1,170,003,120.00

Return on Investment -40.10%

The big here is that while the project is currently in the red to the tune of a negative -$1,170,003,120.00, that also points to the need for $1.170 billion in total sponsorships.

On that note, the $309,632,820.00 in “Total Annual Non-Event Revenue” represents sponsorships, and is the category area where money from a naming rights agreement would be. To this date, and with a much-talked-about desire to host the 2020 NFL Season, there has not only not been an announced naming rights agreement, but the vast majority of what the National Football League calls “founding partners” have not been signed.

By contrast, the Atlanta Falcons had eight of its eventual 11 “founding partners” signed up by the name point in time during its construction, or one year before opening day of full operation. Plus, it’s naming rights agreement was struck that same year period, and in the fall.

The Legends Hospitality organization, which is reportedly the “owners representative” is assumed to be working on signing up sponsors. To date, Legends Hospitality has secured Cox Cable, Caesars Entertainment, and PPG Paint – that’s it.

The Las Vegas Stadium / Raiders Can’t Get A Giant Naming Rights Deal Like LA

The overall problem is the cost of the Las Vegas Stadium Project is well north of the ability to generate revenue to pay for it. It really needs a larger public investment than it has, and it needs what it seemed to have at first: Sheldon Adelson ready to throw away $650 million that he won’t get back.

Right now, the best scenario is for a firm to enter into a multi-building naming rights deal, but there’s no partner which has any buildings to add to that cache of structures to name. The other scenario is for Sheldon Adelson to fork over $650 million for naming rights and give up his desire to be part of an ownership team. Folks, I can say that’s not happening one bit unless Adelson gets some desire to see the Raiders project paid in full, if only as a gift to Las Vegas.

Absent that, you can kiss the idea of a giant sponsorship like the $400 million proposed for LA Rams New Stadium goodbye.

Las Vegas is not a big player in the media markets. It would take a level of clever deal proposals using more than just the Las Vegas Stadium as sponsor partner to change that.

Stay tuned.

Oakland Now Note: this video-blog post demonstrates the full and live operation of the latest version of an experimental Media mobile media video-blogging system network. This is a major part of our new approach to the production of media. The uploaded video is from a ger with the Zennie62 on YouTube Partner Channel, then uploaded to and formatted automatically at the Oakland Now site and -owned social media pages. The overall objective is smartphone-enabled, real-time, on the scene reporting of , 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. Media is constantly working to improve the system network coding and also seek interested content and media technology partners.



By Zennie Abraham

Zennie62Media, Inc. CEO Zenophon Abraham AKA Zennie62 YouTube Zennie62 YouTube Partner, Oakland California blogger / vlogger Hire @Zennie62Media, Inc to tell your story.


Oakland News Now Recent Blog Posts

Do NOT follow this link or you will be banned from the site!