NFL teams provide much more than financial returns

Clark County and the city of Las Vegas will be spending almost $1 billion dollars to bring the Raiders to Sin City. There’s that $750 million going to the actual building of the stadium. That’s being paid by the hotel tax. That means Las Vegas residents technically aren’t paying for the stadium. Visitors are. But, they also snuck in $200 million for infrastructure maintenance. spending. That’s $950 million. Any town would be crazy to pay that much right?

Look, the studies that show stadiums really don’t bring in revenue at the levels they say they do are pretty well known. Here is one from Stanford. Or, how about an article how taxpayers always lose in this situation. Deadspin has been at the forefront of make billionaires pay for their own venues with this and this. At this point the whole idea that a stadium spurs economic growth as been debunked. Even if we will hear otherwise from the NFL, Raiders and Las Vegas.

The issue is that’s not the only thing professional sports teams bring to a city. There are benefits such as civic pride, exposure for the city on television and other things that simply don’t factor in to the final fiscal number. People from different sections of Oakland may be very different, but they could all agree that the Raiders were their team. The Raiders also were involved in community outreach and programs. All of that leaves when the Raiders leave town. Factor that in with the Warriors moving across the bay and the city of Oakland has lost a lot of its sports character over the past few years.

It’s unfortunate but it is the truth. The Raiders could never turn down $750 million of free money — nevermind the extra $200 that could be paid for by citizens. Las Vegas probably won’t make that back — no matter what study they point to, we have too much historical data to accept that this is a good fiscal investment by the government. In the end Las Vegas decided having a football team was a bit of a status symbol. The benefits the city receives may be intangible benefits. Community programs, civic pride, rooting as a city, general exposure. It all doesn’t hit the balance sheet, but it all comes with having an NFL team that they can call their own.

States and cities give regular companies tax breaks all the time. Bringing in a football team is exactly like bringing into a company. The financial results are net positives when a municipality gives a large conglomerate a tax break to set up shop in their city. The financial results for a professional sports are often net negatives. That doesn’t take into account everything. It’s unfortunate that Oakland lost the team that was most associated with the city. But, it was just business.


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