Raiders Stadium Taking Shape as Team Officials Look at Naming Rights Possibilities

By ALAN SNEL

LVSportsBiz.com

 

The Raiders stadium is taking shape as the metal works are rising from the 62-acre site on the west side of Interstate 15, across the highway from Mandalay Bay hotel-casino.

 

Behind the scenes, the Raiders are also looking at a naming rights deal — a vital revenue stream that the Raiders will control and that will contribute to revenues that will help pay off a Bank of America loan as a major part of the Raiders Equity Contribution. Check out the budget for the stadium project. (The actual stadium itself is costing $1.33 billion)

 

 

 

Depending on the scope and activation details of the Raiders stadium naming rights deal, LVSportsBiz.com estimates the value of a naming rights agreement could be worth $15 million a year to $20 million a year with an agreement that can be in the 20-year range. I would estimate the naming rights deal would rival the value of the Rams-Chargers football stadium under construction in Inglewood that is also scheduled to open in 2020. By the way, here’s a report on the Rams stadium:

The value of the naming rights for the Raiders domed, 65,000-seat stadium could be a record-breaking deal because the venue is also being built for other major sports events such as college basketball Final Fours, college football championship games, Super Bowls, international soccer matches, WrestleMania and music events/concerts.

 

LVSportsBiz.com expects many of the stadium visitors to not only come from the Las Vegas area but from locations around the country and from around the world. The Raiders said 73 percent of the fans who bought personal seat licenses to club seats at the stadium were from Nevada and owner Mark Davis told LVSportsBiz.com the majority of seats at Raiders games will be occupied by Nevada residents.

 

But keep in mind that many Las Vegas residents bought personal seat licenses (PSLs) for not only themselves but also as an investment so that they can sell their seat tickets at a higher price on the secondary market. And who knows will buy those tickets. My hunch is that many tickets originally purchased by Nevada residents will be re-sold to out-of-state visitors, tourists and fans.

 

That would mean a brand that buys the stadium naming rights probably will have a national or even global reach. So expect a company with not only deep pockets like Mercedez-Benz (naming rights at the Atlanta Falcons’ stadium) and AT&T (naming rights at the Dallas Cowboys’ stadium) but also one that wants a deal that would allow its brand to be marketed nationwide.

 

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People have mentioned Bank of America as a potential naming rights holder, but the bank already has the naming rights for the Carolina Panthers’ stadium. Dallas-based Southwest Airlines is a possibility, especially with the opportunity to display its mark on the stadium roof for all jet passengers to see only a few miles from McCarran International Airport.

 

I also would not rule out MGM Resorts, especially after Caesars Entertainment made a major news splash when the hotel-casino company scored the first founding partnership deal for the Raiders stadium in the shadow of MGM Resorts hotel properties.

 

Companies looking to expand its marketing profile often look at sports naming rights deals, and a darkhorse for the Raiders stadium naming rights could be Las Vegas-based Credit One Bank, which has spent marketing dollars on NASCAR driver Kyle Larson and the Vegas Golden Knights. Banks and financial institutions are a popular category for stadium naming rights deals.

 

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