Raiders Rip Off Taxpayers
Once again the Raiders rip off taxpayers in the funding of their new stadium. Until taxpayers start defeating those politicians who support these outrageous deals they will keep happening.
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Yet no one’s stock spiked higher than that of the National Football League’s Raiders. Their relocation from Oakland to Las Vegas was approved on the strength of a US $1.7-billion stadium plan propped up by $950 million in public funding ($750 million for construction and $200 million in maintenance).
The impact on the Raiders’ bottom line won’t be fully realized until 2020 and beyond, when they’re actually playing in the 65,000-seat domed stadium south of the strip, but make no mistake that the team is going from the NFL basement in terms of enterprise value, attendance and stadium revenues to the penthouse thanks to the huge subsidy from Nevada politicians. ...
That subsidy is a godsend for the Raiders and their balance sheet, but it’s a sore thumb for those who question the value of taxpayer funding for arenas and stadiums that serve as playpens for billionaire pro team owners.
The incentives behind the Vegas deal set a new high-water mark for stadium seduction. Never before has $950 million been gifted to a pro sports franchise the way it was to lure the Raiders from Oakland. ...
And it doesn’t end there. The Raiders will also receive naming rights that will command north of $15 million per year and have the right to sell personal seat licences (an upfront fee to be paid by fans simply to earn the right to buy season tickets).
Good on owner Mark Davis and the Raiders for scoring the perks. Bad on the high-rolling politicians in Las Vegas and Nevada for setting a ridiculous new standard for public financing of stadiums.
Just when it seemed that fully privately financed venues such as the Bell Centre, Air Canada Centre, Rogers Arena, Staples Center and the new homes of the Los Angeles Rams and Golden State Warriors were gaining traction as the right business model, Vegas makes carpet-bagging fashionable.
http://vancouversun.com/sports/bulls...ublic-finances