Raiders Stadium Las Vegas Budget Jumps to $1.9 Billion With More Suites, Club Seating Added
Posted on: July 22, 2019, 04:00h.
Last updated on: July 22, 2019, 12:04h.
The budget for Las Vegas Stadium, the Strip venue that will host games for the NFL’s Raiders, is on the rise to $1.9 billion from the initial projection of $1.8 billion after officials recently signed off on $40 million in new construction to install additional seating options that can be sold for higher prices.
Last week, the Las Vegas Stadium Authority Board of Directors approved the addition of 20 more luxury suites and field-level club seating, reports the Associated Press.
Las Vegas Stadium, which will be operated by entertainment company AEG, is getting $750 million in funding from local taxpayers. In addition to hosting the Raiders, who will move from Oakland, the venue will also serve as the home stadium for UNLV football. For football games, its seating capacity is expected to be 65,000.
At $1.9 billion, the budget for Las Vegas Stadium exceeds that of the recently opened Levi’s Stadium, home of the San Francisco 49ers, but it is well below that of the $4.9 billion property being built in Los Angeles to accommodate the Chargers and Rams.
It was recently reported that Las Vegas Stadium passed the halfway point in its construction and is on pace to be operational prior to the start of the 2020 NFL season.
A Boon For The Strip
The opening of the stadium and the addition of an NFL franchise to Las Vegas is expected to be a boon for the city’s gaming and leisure companies and could lead to a flurry of new development in the area. The stadium, situated between Hacienda Avenue and Russell Road at the south end of the Strip, is near MGM’s Aria, Bellagio, and Mirage. Also nearby are the Cosmopolitan and several Caesars properties.
The Raiders’ eight regular-season home games are expected to be a driving factor in luring more visitors to Sin City and if the team improves, there is the potential for up to two playoff games per year. Although the Raiders have yet to play a game in the city, Las Vegas is already seeing some benefit of being an NFL town as the league formally announced it will host the 2020 draft there.
AEG’s goal is to have Las Vegas Stadium host 46 events per year, according to the Las Vegas Review-Journal. The paper notes that Raiders and UNLV football games would combine for 16 of those events, leaving another 30 events to be filled at the domed stadium.
AEG officials could look to position the stadium as a venue for neutral-site college games held early in the season, something that has been a money maker for glitzy football properties in cities such as Atlanta and Dallas. The stadium will also host the Las Vegas Bowl, which has been held at UNLV’s Sam Boyd Stadium since 1992.
A new venue and adjustments to the game’s participants, including matching two teams from major conferences, could bring more fans to the competition and that means more visitors to Las Vegas.
Last year, the NCAA relaxed some of its rules on holding competitions in states where sports betting is legal, saying it will allow championship or tournament games to be held in those places in the future. That could put Las Vegas Stadium in the mix to host the Final Four down the road.
More than 10,000 construction jobs have been created as a result of Las Vegas Stadium, providing a solid, non-gaming boost to the local economy. Once the venue is up and running, it is estimated the annual economic impact could reach $620 million with about 6,000 jobs permanent jobs being created.
If the stadium is ever selected to host the Super Bowl, the economic benefit to Las Vegas, though it would be a one-off event, could top $1 billion, according to some estimates.
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