Las Vegas Stadium Loss Of Garth Brooks Concert, Raiders NFL Preseason, $157 Mil In Lost Econ Impact
From youtube Channel: July 29, 2020 at 11:05PM
ONN – Las Vegas Stadium Loss Of Garth Brooks Concert, Raiders NFL Preseason, $157 Mil In Lost Econ Impact
Loss Of Garth Brooks Concert, Raiders NFL Preseason Games, $157 Million Lost Economic Impact Due To The Pandemic.
This morning, legendary country music singer Garth Brooks announced that he is moving his Allegiant Stadium concert date to February 21, 2021, from its August 22nd 2020 planned event day. That means the sold out 65,000 tickets will be transferred to that scheduled date. It also means the loss of three large events for the month of August 2020 because of The Pandemic.
The question is what is that in Economic Impact? I elected to use the Billboard EDC Las Vegas 2014 Economic Impact Study as the basis for the development of a multiplier that can be applied to a smaller audience of 65,000 people.
The reason I used the EDC Las Vegas 2014 estimate was because it was a large scale event, in Las Vegas, and that used hotel rooms on the Las Vegas Strip, and provided business for vendors and other service providers in the immediate region. It also drew people from out-of-town more so than locals. Given that this is to be NFL Year One in Las Vegas, it made sense to pick an event that reflects the excitement for it – EDC Las Vegas seemed logical.
Can Allegiant Stadium AKA Las Vegas Stadium Draw 46 Events?
When local Las Vegas writer Alen Snel took on the question “Will Raiders’ Allegiant Stadium Draw 46 Events Annually In Las Vegas?”, he asked the right question in terms of events, but failed to ask if the combined number would throw off enough revenue to pay for the developer’s expense to build it. Snel ended his post with “The Raiders are receiving $750 million in public money — more than half of the stadium’s construction costs. Stadium advocates support the concept of publicly subsidizing the construction costs because they argue tourism dollars related to the new stadium will justify the nation’s biggest NFL stadium public subsidy.”
Obviously Alen either missed the Southern Nevada Tourism and Infrastructure (SNTIC) meetings, and the presentation of a file that looked at Las Vegas Stadium’s “internal rate of return” or “IRR” estimates with respect to number of events. If he did, he would have known that was where the magic 46 large annual events target came from.
It came from the SNTIC Stadium Model Presentation FINAL of September 2016. That document, linked to here, presented a desired mark of 46 events producing an internal rate of return of 8.78 percent. But, if the place now called Allegiant Stadium secured only 26 large events, the IRR was estimated to be -4.39 percent. So, 10 NFL Raiders Games and six UNLV Football Games would be far from what was needed, give 16 events, and yield an IRR of -100 percent over a 30-year-period.
Of course, the irony of the SNTIC modelling was that more public investment increased the IRR for the private developer. But less private money decreased it. The situation Las Vegas finds itself in right now is one where the yield an IRR of -100 percent over a 30-year-period. Next time, we’ll talk about what that means for the former Oakland Raiders in Las Vegas.
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