Raiders Generate $549.2 Million In Personal Seat License Revenue For New Stadium In Las Vegas; Hotel Room Tax Revenues for April, May Will Be Zero Because Of Pandemic Hotel Shutdown
By Alan Snel of LVSportsBiz.com
The Raiders have hit the jackpot in personal seat licenses at their new stadium in Las Vegas with an astounding $549.2 million in PSL revenues that will be used to help pay the team’s contribution to the construction of the $1.97 billion stadium project.
The public has already paid $636.3 million of its $750 million toward building the 65,000-seat, domed stadium on 62.5 acres on the west side of I-15 across from Mandalay Bay.
The Raiders are also using a $261 million Bank of America loan and a $162.2 million loan from the NFL to pay for the stadium project. The stadium authority board reviewed the finances during an afternoon meeting Thursday that was on video for the public.
Stadium Board Chairman Steve Hill said there will be enough money to pay off the debt service even with the drop of hotel room tax revenues in March, April and May because of the COVID-19 pandemic. He said the annual debt service is expected to increase from $34 million to $45 million during the life of the 30-year debt repayment period. You can see the big nose drop in March hotel room tax revenues this year compared to the year before.
Hotel room tax revenues will be zero in April and May because of the hotel shutdowns due to the coronavirus pandemic, said Jeremy Aguero, the stadium authority board consultant. Aguero said money in the debt reserve fund will cover the stadium authority’s debt payments with the big drop in hotel room tax revenues. As you can see, it’s been quiet on the Strip with the hotel-casinos shuttered.
Raiders stadium pointman Don Webb said the COVID-pandemic has made the ambitious construction timeline “even more challenging,” but the stadium is still on schedule to be ready July 31. More than 2,000 workers are putting the stadium together with 72 days to go.
Here’s a look at the retractable playing field tray, which received rolls of natural turf recently.
Here is a summary of the small business and diversity workforce numbers, with Raiders surpassing small business and diversity goals as of March.
The stadium authority board also heard about the proposed policy surrounding the free suite it will get from the Raiders for Raiders games. The stadium authority is supposed to use the free suite for economic development, jobs and community purposes. The stadium authority will have to pay for food and drinks, though.
And the UNLV football schedule at Allegiant Stadium was also discussed. It turns out the UNLV football team will play six of its seven home games at the Raiders’ stadium in 2020, with one home game at good ol’ Sam Boyd Stadium.
In talks with the Raiders, UNLV agreed to move its football game with Colorado State from Saturday Oct. 24 to Friday Oct. 23 at Allegiant Stadium, so Raiders — which control the venue — will allow the UNLV Rebels to play Arizona State at Allegiant Stadium Sept. 12 instead of at Sam Boyd Stadium. That means the only UNLV home football game at Sam Boyd in 2020 will be against Louisiana Tech on Sept. 5.
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