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Question of the Day - 17 August 2025

Q:

There's a lot of talk about the public funding for the presumptive Las Vegas A's stadium, but how does it compare to the public funding for Allegiant Stadium? How much is it for each and where do the public funds come from?

A:

First, the A's stadium. The public funding is capped at $380 million and the sources will be transferrable tax credits and Clark County bonds. Here's the breakdown.

Clark County will issue $120 million in bonds to cover part of the public funding, which will be repaid over 30 years via revenue generated from a special tax district -- Clark County, Nevada, Sports and Entertainment Improvement District No. 1, to be exact -- that's been created around the stadium. Presumably, a lot more sales and property taxes will be collected with the stadium in place. Clark County will also contribute $25 million to fund infrastructure improvements, such as roads and utilities, around the stadium site.

The rest of the public funding will come from transferrable tax credits issued by the state. Transferable tax credits are state-issued incentives that can be used to reduce tax liabilities, such as taxes on sales, business operations, ticket sales, concessions, or events. They can also be sold or transferred to other entities, allowing the A's to convert the credits into immediate liquidity.

This package is different from the public funding for the Las Vegas Raiders’ Allegiant Stadium. The sour aftertaste of that process necessitated a lighter touch for the A's home park. 

First, the Raiders sucked $750 million out of the public coffers. The state passed a bill authorizing a 0.88% increase in the room tax in Clark County, paid by everyone who stays in a hotel room in southern Nevada. The funding was controversial due to the size of the loan, one of the largest for an NFL stadium in U.S. history, and the raising of taxes to pay for it. No taxes were raised to pay for the A's stadium. 

Also, the 30-year repayment period puts Nevada taxpayers at risk; we can face a liability to cover the bond payments during an economic downturn (or self-sabotage by the gouge, for example), though officials have insisted that safeguards are in place.

As of mid-2025, approximately $176 million in total debt-service payments, including $13 million in principal, have been made toward the $750 million; $1.18 billion in principal and interest remain to be paid off. The payback is a little ahead of schedule; at this rate, the total will be retired by 2045-2046, two to three years early. We'll see if hotel-occupancy rates stand up for the next 20 or so years. 

 

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Comments

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  • Jon Miller Aug-17-2025
    Interested to hearing from the naysayers
    As someone who looks forward to a Vegas trip every couple years, usually for March Madness,  the addition of the Raiders and soon the A's are a pretty big "value added" that may get many of us to visit more often (to see local NFL and MLB teams play in sin city).   Just another excuse to fly into town, see a game, and spend way too much money, gladly.   I'm sure there are strong arguments, especially from locals  (tax increases, traffic at that end of the strip, etc.) but none of that really effects me (besides the .88% hotel tax- but that's "baked in" so I really wouldn't know unless I read this...).   I imagine the NBA will be coming to town soon enough as yet another draw....

  • Sandra Ritter Aug-17-2025
    Value added
    Bringing the A's to LV??? I certainly question that.

  • Gregory Aug-17-2025
    Do the math
    The Raider's as a team has a street value of around $6.7B. Putting the team in a ~$2B stadium probably makes some sense.
    
    The A's have street value of about $1.1B.  Putting them in a ~$2B stadium makes no sense at all.

  • David Miller Aug-17-2025
    Added Value?
     I question the notion that the pathetic Raiders and the equally pathetic A's can be considered as "added value". One suddenly realizes the enormous expense involved to actually go to a game, both financially and time wise. Paying anywhere from $200 -$600 for a Raiders ticket and $10 -$15 for a single beer is outrageous. Paying $80 -$ 100 to park is another gouging expense. Whenever -if ever- the A's actually move to and play in Vegas, one can expect similar pricing and gouging. Add to these expenses with all of the other current gouges incorporated by the casinos and one suddenly realizes that Vegas has morphed into a tremendous money draining machine that few can afford. Vegas is fast becoming Disneyland on steroids, expense wise. But, it is "your money" to spend - just don't overlook the reality of the cost for sitting in the nosebleeds with thousands of obnoxious, beer swilling, loud, foul mouthed "fans" for 2-3 hours of "enjoyment".

  • John Dulley Aug-17-2025
    Jesus David
    There’s only 8 raider home games and there would be 81 home A’s games so the cost would obviously be much less. Have you been to a raiders game? A large chunk of the fans going are tourists walking to the game myself included who walk from Mandalay Bay or NYNY or somewhere else on the strip. Plus the new stadium will be a draw on its own. I never really have a beer at games anymore but also no ones forcing me to either. Lastly the fans at the games can’t possibly be anymore obnoxious than the average tourist on the strip or Fremont street..

  • Bob Aug-17-2025
    Assumptions
    Y'all are assuming that the Stadium will get built! I'm not so sure. are they selling out Sacto.?

  • sunny78 Aug-17-2025
    pay source
    I've always been a strong believer the team owners should pony up 100% of the money to build these stadiums, not tax payers in any amount. And frankly spending close to/over 1 billion for a sports stadium is gross to me in large part by taxpayer funds. With that said, more power to people who have their own money if they want to spend whatever on a stadium, but leave the tax payers out of this. The data I've seen shows a poor payback on this "investment" also.
    
    Grok: "The idea that publicly funded sports stadiums are a good investment for cities is largely unsupported by evidence. Detailed studies over decades, up to recent 2023–2025 analyses, confirm that economic benefits are minimal, often redistributing existing spending rather than generating new growth. Taxpayers bear significant costs while team owners and private entities reap the profits. Alternative investments in infrastructure, education, or healthcare typically offer better returns."

  • Edso Aug-17-2025
    Agree with Jon!
    There will be plenty of fans from across the country that will come to see their favorite team play the A's, and also get in a Vegas Vacation.  For it is money they have and enjoyment they lack.  Yes, Jon, they will come, they will most certainly come to the desert to see baseball.