There have been rumors of Las Vegas getting a professional sports franchise for some time now. They just recently inaugurated the Las Vegas Golden Knights, an NHL team that will play out of the T-Mobile Arena. While the NHL’s expansion into Las Vegas is historic, rumors still swirl about a potential NFL and NBA team.
The former seems to be the more realistic move, with the Oakland Raiders officially filing for relocation papers back in early January. The Raiders’ bit for relocation hit a snag recently, as primary financial backer Sheldon Adelson, a casino mogul, has pulled his investment out of the deal. Adelson had pledged $650 million towards the plan—which is estimated to cost around $1.9 billion—but he pulled out after apparently being left in the dark about the stadium lease agreement. Goldman Sachs is another potential investor, but their stake in the matter is under question after Adelson’s abrupt departure.
The Raiders submitted a lease-agreement proposal in which they have taken responsibility for Adelson’s share, though they have now upped the original bid for the relocation. The proposed plan involves a stadium that is yet to be built, but it is planned to host 65,000 fans. Raiders owner Mark Davis is adamant about bringing the franchise to Las Vegas, but any move would first have to be approved by 24 of the 32 NFL team owners.
Before any voter approval even happens, the money has to be there to back the project. If Goldman Sachs pulls out of the deal, then it could be dead in the water. Adelson has a lot of ties to Las Vegas, including owning the Las Vegas Review-Journal. The Journal reported that Adelson was still in negotiations with Davis, though another report has claimed Goldman Sachs are all in, despite Adelson’s involvement with the deal.
Jeremy Aguero of Applied Analysis, the company serving as staff to the Las Vegas Stadium Authority throughout the deal, was quoted as saying: “The team’s presentation highlighted its research that the Las Vegas market can support the team, that bringing the NFL to the market aligns with the league’s strategic goals and that Goldman Sachs is committed to financing the project with or without a third party. The Raiders told the committees that there is no deal in place yet with the Adelson family and that the team is pursuing approval with no third-party involvement. However, if an accord with the Adelson family is reached later, the team would bring that back for league approval.”
There are obviously a lot of moving parts with this deal, but the general consensus seems to be ‘where there’s a will, there’s a way,’ and the interested parties certainly have a will. Perhaps the most interesting aspect of this is that while the major professional sports leagues are all seeking expansion, Las Vegas has always been considered a no-go. This is due to the rampant sports betting in the town—all of which is legalized, as the state is exempted from the Professional and Amateur Sports Protection Act. This franchise could bring even more online sports betting in NV. Whether it’s the leagues finally starting to take a relaxed stance on sports betting, or perhaps just the potential profits to be made, Las Vegas may get their next franchise. Question is: who’s going to foot the bill?