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10.3FinalProjectPowerpointexample.pptxAllegiant Stadium: Home to the Las Vegas Raiders
Dimitri Nannas
Sports Management at Southern New Hampshire University
SPT 601: Sport Facility Management and Operations
Dr. Amy Stell
June 2023
In today’s society, we as the consumer expect more out of everything that we spend our money on. Whether it is through eating at a restaurant or purchasing new clothing, the average person wants to make sure they got their money’s worth. With technology advancing our lives daily, it only adds to higher expectations from sellers to keep up with the times. One area that fans and spectators demand more from is through the operations and management of public assembly facilities including arenas, stadiums, convention centers and performing arts centers. The facility chosen to be written about is Allegiant Stadium, located in Las Vegas, Nevada, home to the National Football League’s Oakland Raiders.
1
General Facts on Public Funding for Construction
1990 to 1998, 46 stadiums and arenas were built or renovated
Tax Reform Act of 1986
Taxes are intentionally levied
Spending of their taxes for three main reasons
Between 1990 and 1998, 46 stadiums and arenas were built or renovated for teams in the four major sports leagues with two-thirds of the $21.7 billion spent on these buildings will have come from government sources (Groothuis et al., 2004).
During this time of the Tax Reform act of 1986, Congress tried to eliminate tax exemptions for bonds by removing them from the category of private activity bonds exempt from federal taxation (Fisher, 2021). Instead, the Act effectively place responsibility on state and local governments to finance the majority of the stadium if they wanted to receive a federal subsidy (Fisher, 2021).
Taxes are intentionally levied on tourism such as hotel taxes, food and beverage taxes and car rental taxes so that the out-of-towners pick up the tab, while hoping that locals pay less (Coates & Depken, 2018).
Fans don’t mind taking the hit with the spending of their taxes for three main reasons: sport teams serve as civic pride and an improvement of the quality of life, even for local residents who are not sport fans, economic development for local business by integrating stadiums into downtown neighborhoods, and to serve as a melting pot for different races, ethnicities and socio-economic classes to join together as one during their team play (Groothuis et al., 2004).
2
Public Funding Benefits and Drawbacks
1.7 million people attending events at the $2 billion facility in 2022
Current projections of results from 2016
Increase in jobs
Overstated and misleading due to methodological flaws
Actual results post construction completion
Allegiant Stadium continues to prove itself as one of Las Vegas’ biggest draws with nearly 1.7 million people attending events at the $2 billion facility in 2022, with many visitors coming far beyond Southern Nevada (Akers, 2023).
The current projections from 2016 estimated that there would have been $620 million in economic output through 450,000 annual incremental visitors, 708,400 annual incremental room nights and $35 million in state and local revenue (Richardson, 2016).
In addition to all the tax money brought in from visitors, there was an expected amount of 14,000 permanent jobs to the area with over 25,000 temporary construction jobs (nbcsports.com, 2016). With the number of jobs being increased also comes with a higher quality of life where people who are unable to find work can finally obtain a job, thanks to the new addition to the area.
Even with those benefits, there are multiple drawbacks of public funding used for stadium construction. Even though local civic leaders and stakeholders promote the benefits of stadium development, their claims are supported by commissioned economic impact reports which are often overstated and misleading due to methodological flaws (Diosdado et al., 2022). Not only are these reports misleading but underwriters who have excellent skills and knowledge of finances are able to generate more profit at the expense of tax payers through the bond issuance process (Diosdado et al., 2022).
There is evidence that Allegiant Stadium construction did not spur job growth. With a report from the Las Vegas Stadium Authority, the project created only 5,656,218 hours of construction labor, which is equaled to 2,719 full-time equivalent jobs, or 900 each year for 3 years of construction (Fisher, 2021).
3
General Facts on Allegiant Stadium and Costs
65,000-seat facility
Broke ground in November 2017
Equipment numbers
Diversity numbers met
Allegiant Stadium is a 65,000-seat facility and a 1.8 million-square foot world-class home to the Las Vegas Raiders and the University of Nevada (UNLV) college football team (Morales, 2020).
This landmark facility required the removal of 895,000 cubic yards of dirt, 12 miles of concrete drill shafts, miles of piping and utility systems, 19 cranes used during construction, 28,000 tons of structural steel, 105,000 cubic yards of concrete and 482,000 structural bolts (McCarthy.com, 2023).
the stadium construction exceeded all small and diverse business goals with 23 percent awarded to small businesses and 62 percent of the workforce being minority and female (McCarthy.com, 2023).
4
Funding Procedure for Allegiant Stadium
Total of $1,800,000,000
Repayment of 30 years
Hotel room tax increase
Affecting visitors, not residents
It took about $750,000 worth of municipal bonds from the city of Las Vegas to make this project possible, including $200,000 from the NFL G-4 funds, $250,000 from Personal Seat License proceeds and $600,000 from a construction loan equaling a massive total of $1,800,000,000 (Diosdado et al., 2022).
For the Las Vegas Raiders, the bonds will be repaid over 30 years by collecting hotel room tax (Stutz, 2022).
The hotel room tax would be funded through a 0.88 percent increase in the room tax (Richardson, 2016).
According to lawmakers, this tax would primarily affect visitors and any negative economic impact would be negligible for Las Vegans (Fisher, 2021).
5
Approval of Allegiant Stadium
16 to 5 vote to pass
Sheldon Adeson
NFL owners
Nevada Governor Brian Sandoval
How all this began was through the Nevada Senate and a 16 to 5 vote to pass a bill that would raise hotel taxes up to 1.4 percentage points to build the stadium and to renovate the convention center (nbcsports.com, 2016).
Not only did the Raiders have support from the government side, but from billionaire casino mogul Sheldon Adeson, who partially funded the deal (nbcsports.com, 2016).
In total, the hotel bill for an average night out in Las Vegas would go up $1.50 as a result of the vote (nbcsports.com, 2016).
Lastly, two-thirds of the Republican controlled chamber of the Legislature approved the tax increase and the NFL owners voted to approve this change with three-forth majority to allow the Raiders to move from Oakland to Las Vegas (nbcsports.com, 2016).
Moving forward, Nevada Governor Brian Sandoval signed a bill into law that set $1.15 billion in public funds for two mega-projects which were the stadium and a large-scale upgrade to the Convention Center (Pacheco, 2016). With more upgrades to the convention center means more attractions and visitors to Las Vegas. With more visitors will mean more tax revenue being brought in to repay the bonds. Now with the stadium built, the Las Vegas Stadium Authority owns the 65,000-seat stadium agreed to lease it to the Raiders, according to Steve Hill, Chairman of the organization (Stutz, 2022).
6
Hurdles of Constructing Allegiant Stadium
Covid 19
Steel supplies
Two main hurdles during construction of Allegiant Stadium include the Covid-19 Pandemic and an international trade war (Horwath, 2020).
The trade war included steel supplies, mainly because of the pandemic.
Covid-19 made the construction process much more difficult because of the hot temperatures in Las Vegas, and workers were forced to wear face coverings which made it much more difficult to breathe (Horwath, 2020).
Construction was slowed down as well, as there was a limited amount of people who were able to work all together at once, leaving close to 2,000 per shift (Horwath, 2020).
7
Amenities and Uniqueness of Allegiant Stadium
Technologically advanced
Focused on sustainability
35,000 parking spots
100 premium suites and clubs
Lanai doors and translucent roof
20-million-pound retractable field system
Allegiant stadium is very technologically advanced compared to other stadiums with over 2,200 TVs, more than 10 event spaces, 75,000 square feet of video boards, a 92-foot-tall 3D-printed Al Davis Memorial Torch, super-fast Wi-Fi and completely cashless experience (Wheeler, 2022).
The stadium is focused on sustainability, thus being able to donate an average of 11,000 pounds of food waste per event to be turned into food for livestock, energy efficient lights and air conditioning (Wheeler, 2022). In addition to all the advanced technology available at the stadium, there are groundwater dewatering stations to subsidize irrigation with over 425 planted trees (Wheeler, 2022).
Not only are guests able to find the perfect parking spot for themselves, but there is over 35,000 sports within 1 mile of the stadium and tailgating is allowed in 6,000 spots at designated parking areas (Wheeler, 2022).
Allegiant stadium has a 65,000-seat capacity with more than 100 suite options that can host between 18-26 guests and feature VIP parking, early stadium access, in-suite restrooms, VIP entrances, catering, and premium beverage options with access to the 200-level clubs (Wheeler, 2022). Not only are there multiple restaurants such as the Modelo Bar, Jack Daniels Bar, 1800 Bar, Blue Moon Bar, 1960 Bar, Torch Bar and Coors Light Bar, but there are premium clubs and lounges found inside of Allegiant Stadium (Wheeler, 2022). The Wynn Field Club hosts fans with a DJ, 5-star food options, bottle service, four private bars and 42 TVs so visitors can enjoy the game (Wheeler, 2022).
The stadium sits on 62 acres of land with 60 by 215-foot lanai doors on the north end of the stadium that provide a spectacular view of the Las Vegas Strip (Akers, 2020). There is also a translucent roof with the dome being controlled by a cable truss system that is suspended by 100 stainless steel cables that create the lightweight roof structure diaphragm (McCarthy.com, 2023). This roof provides protection to the players and fans from the summer heat, while preserving the atmosphere of an outdoor stadium (McCarthy.com, 2023).
Lastly, there is a 20-million-pound retractable field system that provides the Raiders with a real grass field in the desert (McCarthy.com, 2023). The stadium moves the grass field with 540 electrically-powered wheels across 13 rails which allows the natural grass to move outdoors for sunlight and water (McCarthy.com, 2023).
8
Comparison to Allegiant Stadium
| Criteria | Allegiant Stadium | SoFi Stadium | Author |
| Location | Las Vegas, NV | Irvington, California | (Akers, 2023) |
| Seating Capacity | 65,000 to 72,000 | 70,240 to 100,240 | (Akers, 2023) |
| Cost | $2 billion | $5 billion | (Akers, 2023) |
| Acres | 62 | 298 | (Akers, 2023) |
| Build Time | 31 months | 47 months | (Akers, 2023) |
| Special Feature | Lanai Doors | 120- Yard, double sided oval, 4k HDR system | (Markazi, 2021) |
| Biggest Event | Super Bowl LVII | Super Bowl LVI | (Akers, 2023) |
| Neighboring Area | Mandalay Bay/ Luxor | Hollywood Park Casino | (Markazi, 2021) |
The following table compare and contrasts Allegiant Stadium to the recently built SoFi Stadium. Both stadiums serve teams for the National Football League, but Allegiant has the Raiders, while SoFi hosts the Rams and Chargers.
9
Major Sponsorships to Allegiant Stadium
Boyd Gaming
Wynn Field Club
Molson Coors
MGM Resorts
Intermountain Healthcare
San Manuel Casino
Reyes Coca-Cola Bottling
Twitch
Credit One Bank
America First Credit Union
Allegiant
Cox WiFi and Internet
Allegiant Stadium has 12 main founding partners including the following: Boyd Gaming, Wynn Field Club, Molson Coors, MGM Resorts, Intermountain Healthcare, San Manuel Casino, Reyes Coca-Cola Bottling, Twitch, Credit One Bank, America First Credit Union, Allegiant, and Cox WiFi and Internet (Raiders.com, 2023).
10
Major Events of Allegiant Stadium
1.7 million people attending events in 2022 alone
157 private events
NFL’s Las Vegas Raiders
University of Nevada, Las Vegas football team
Allegiant Stadium has proven itself as one of Las Vegas’ biggest draws with nearly 1.7 million people attending events in 2022 alone (Akers, 2023).
In the last quarter of 2022, 536,570 people attended events, largely due to the Raiders’ home games (Akers, 2023).
In addition to sporting events, there have been 157 private events held at the stadium and brought in 88,757 people, while the biggest concert draw was the K-pop super group BTS, pulling in almost 52,000 fans (Akers, 2023).
Since the opening of Allegiant Stadium, it has already hosted a number of acts such as the following: The Rolling Stones, Guns N’ Roses, Garth Brooks, Metallica, Billy Joel, the Red-Hot Chili Peppers, the 2021 NFL Pro Bowl, Pac-12 Championship games, the Las Vegas Bowl games, WWE SummerSlam and the 2021 Concacaf Gold Cup Final (Wheeler, 2022).
In addition to multiple various events, the main event that occurs is from the National Football League’s Raiders and the University of Nevada, Las Vegas football team (Stutz, 2022).
11
Facility Failures of Allegiant Stadium
Cashless payment system crashing
Overflowing toilets
Field conditions
14.3 percent no-show rate
Although not many issues to report on so far at Allegiant Stadium, there have been multiple minor issues that have caused confusion and frustration over. One issue was the stadium’s cashless payment system crashing during a WWE SummerSlam event, and since the stadium does not accept cash, no transactions could occur (Martin & Hopkins, 2021).
That same night, there were reports of overflowing toilets within the first hour of the gates being opened with only 40,000 people inside (Martin & Hopkins, 2021). At a Garth Brooks concert, confusion over traffic, parking and entering the gates were troublesome for many visitors (Martin & Hopkins, 2021).
Another problem reported was during a football game versus the Minnesota Vikings where there were multiple players complaining over the field conditions. Apparently multiple chunks of missing grass and bare spots were all over the field due to one of the soccer teams that played there who requested the field to be more wet, and in return, the field became moldy (Florio, 2022).
The last problem is within its first year with fans in attendance, Allegiant Stadium saw a 14.3 percent no-show rate, which means one in seven ticket holders did not show up to the first eight home games (Berg, 2022).
12
References
Akers, M. (2020, November 6). Allegiant vs. SOFI: How the New Stadiums Stack up. Journal. https://www.reviewjournal.com/sports/raiders/allegiant-vs-sofi-how-the-new-stadiums-stack-up-2177457/
Akers, M. (2023, March 20). Allegiant Stadium draws nearly 1.7m attendees in 2022. Journal. https://www.reviewjournal.com/business/stadium/allegiant-stadium-draws-nearly-1-7m-attendees-in-2022-2746233/
Berg, A. (2022, May 20). Allegiant Stadium sees high no-show rate in first year. Athletic Business. https://www.athleticbusiness.com/facilities/stadium-arena/article/15292334/allegiant-stadium-sees-high-noshow-rate-in-first-year
Coates, D., & Depken, C. A. (2018, May 4). Tax schemes for sports venues. SSRN. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3173824
Diosdado, L., Lam, M., & Parrish, C. (2022, November 1). The hidden costs of financing a National Football League stadium with municipal bonds: The case of allegiant stadium in Las Vegas. TRACE. https://trace.tennessee.edu/jasm/vol14/iss3/2/
Fisher, M. (2021). Dropping the Ball: A Political and Economic Analysis of Public Subsidization for Stadium Construction Projects. Claremont Colleges Scholarship @ Claremont. https://scholarship.claremont.edu/cgi/viewcontent.cgi?article=3816&context=cmc_theses
Florio, M. (2022, August 14). Grass at Allegiant Stadium looked worse than the turf at Soldier Field. ProFootballTalk. https://profootballtalk.nbcsports.com/2022/08/14/grass-at-allegiant-stadium-looked-worse-than-the-turf-at-soldier-field/
Groothuis, P. A., Johnson, B. K., & Whitehead, J. C. (2004). Public funding of professional sports stadiums: Public choice or civic ... Eastern Economic Journal. https://www.researchgate.net/publication/5220851_Public_Funding_of_Professional_Sports_Stadiums_Public_Choice_or_Civic_Pride
Horwath, B. (2020, August 5). Builders overcome remarkable challenges to deliver Allegiant Stadium. Las Vegas Sun. https://lasvegassun.com/news/2020/aug/05/facing-unique-challenges-allegiant-stadium-builder/
Matheson, V. (2018, December). Point/counterpoint: Is there a case for subsidizing sports stadiums?. COLLEGE OF THE HOLY CROSS, DEPARTMENT OF ECONOMICS. https://web.holycross.edu/RePEc/hcx/HC1814-Matheson_FavoringStadiumSubsidies.pdf
McCarthy.com. (2023). Allegiant Stadium. McCarthy. https://www.mccarthy.com/projects/allegiant-stadium#:~:text=Visually%20inspired%20by%20the%20sleek,system%20used%20for%20the%20roof
Markazi, A. (2021, September 20). Comparing SOFI and Allegiant Stadium. Comparing SoFi and Allegiant Stadium - by Arash Markazi. https://arashmarkazi.substack.com/p/the-morning-column-september-20-2021.
Morales, T. (2020, September 1). Allegiant stadium: A field of dreams. Journal. https://www.reviewjournal.com/sports/field-of-dreams-allegiant-stadium/
NBCsports.com. (2016, October 12). Public funding for Las Vegas Stadium passes first of two key votes. RSN. Retrieved April 27, 2023, from https://www.nbcsports.com/bayarea/raiders/public-funding-las-vegas-stadium-passes-first-two-key-votes
Pacheco, A. (2016, December 13). $1.9 billion Las Vegas Raiders Stadium Clears penultimate hurdle. The Architect’s Newspaper. https://www.archpaper.com/2016/10/las-vegas-raiders-stadium-funding-deal/
Raiders.com. (2023). Founding Partners of Allegiant Stadium. Las Vegas Raiders. Retrieved April 27, 2023, from https://www.raiders.com/lasvegas/founding-partners-allegiant-stadium
Richardson, S. A. (2016, October 15). Raiders stadium deal passes legislature, Sandoval to sign on Monday. Reno Gazette Journal. https://www.rgj.com/story/news/politics/2016/10/13/live-coverage-day-3-special-session-raiders-stadium/91990630/
Snel, A. (2022, August 15). Hotel room tax money piling up to help pay for southern Nevada’s public share of building Raiders Stadium. LVSportsBiz. https://lvsportsbiz.com/2022/08/15/hotel-room-tax-money-piling-up-to-help-pay-for-southern-nevadas-public-share-of-building-raiders-stadium/
Stutz, H. (2022, October 28). Executive: Financing of Allegiant Stadium not threatened by raiders upheaval . The Nevada Independent. https://thenevadaindependent.com/article/executive-financing-of-allegiant-stadium-not-threatened-by-raiders-upheaval
Wheeler, J. (2022, December 15). Step inside: Allegiant Stadium - home of the Las Vegas Raiders. Ticketmaster Blog. https://blog.ticketmaster.com/step-inside-allegiant-stadium-las-vegas-nv/#:~:text=The%20Allegiant%20Stadium%20cost%20more,and%20a%20completely%20cashless%20experience.
