Stadium Public Policy: One-On-One With Stadium Public Financing Expert Mark Rosentraub About Raiders And A’s Stadiums In Las Vegas

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By Alan Snel, LVSportsBiz.com Publisher-Writer

LAS VEGAS, Nevada — When major league sports teams were entering the political arena to get government subsidies to build stadiums about a quarter-century ago, one of my go-to sources was Mark Rosentraub, who wrote books on the topic and went on to even work as a consultant for UNLV on a proposed campus stadium project more than a decade ago.

I recently re-connected with Rosentraub,  professor of Sport Management and director of the Center for Sports Venues & Real Estate Development (formerly the Center for Sport & Policy) at the University of Michigan School of Kinesiology.

Rosentraub also was a professor and dean at the Maxine Goodman Levin College of Urban Affairs in Cleveland State University and the campus dean of Indiana University’s School of Public and Environmental Affairs (Indianapolis). He completed his PhD at the University of Southern California.

We go with five questions with Rosentraub.

LVSportsBiz.com: What do you think about the A’s stadium location on the Strip?

Mark Rosentraub:  I think there were other locations that would have arguably lend themselves to more benefits for the public sector.  I do have concerns with the depth of the market and the dependency on tourists to fill seats. What works for the NFL is not a useful guide for baseball teams. Similarly, the success of the Knights created a wonderful honeymoon and perhaps their success (and the success of T Mobile Arena) is what the As think is a precursor to their success.  I have a less optimistic view so I do not see either benefits for the public sector or harbingers of longer term economic success for the team.

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LVSB: How do you look at Southern Nevada’s public contribution of $750 million to help build the Raiders stadium and $380 million to help build the A’s stadium?

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LVSB: With Las Vegas’ economy so tourism-based, are public investments in sports facilities and LVCVA sponsorships a wise decision?

MR: The economy of Las Vegas rises and falls on tourism. Tourists expect unique and affordable hotel experiences and live entertainment events.  That is why they come to Las Vegas as opposed to other casinos located closer to their homes. To continue to attract visitors, Las Vegas actually needs more events and (likely) an additional hotel.

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LVSB: Bring us up to date on what you’ve been doing and what are your thoughts on some of the recent stadium subsidy issues like ones in Kansas City and even  Nashville and Buffalo where new NFL stadiums are planned?

MR: When communities decide to invest in a venue they are essentially planning for the production of tangible and intangible benefits.  The tangible benefits come from new development and the taxes generated by the teams and what I refer to asset-anchored real estate development.  The intangible benefits of having a team in the community.  When we think about Nashville and Buffalo the fair question to ask is what are the tangible benefits.  I tend to think there will be little new development in Buffalo and that makes the success of the project linked solely to the intangible benefits.  Those benefits might not be enough to offset the costs.  Similarly, for Nashville there is anticipation that there will be some real estate development.  Again, the question for that community is, “Are the intangible benefit sufficient to warrant what is being invested IF the real estate development does not occur.

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