Las Vegas Raiders Stadium And Sponsors Suffer During Pandemic
ONN – Las Vegas Raiders Stadium, Sponsors, And Sponsorships Suffer During COVID-19 Pandemic
The Las Vegas Raiders has found 12 “founding partner” sponsors with the help of Legends Entertainment. They include Allegiant Airlines, MGM Resorts, Caesars Entertainment, PPG Paint, Cox Communications, The San Manuel Casino, ROKIT Phones, Intermountain Health, Reyes Coca-Cola Bottling, Twitch, Credit One Bank, and America First Credit Union. While no official number has been released, this blogger estimates the Raiders potential revenue from these sponsorships at $1 billion.
But it’s important to note the use of the words “potential revenue”. The Allegiant Airlines sponsorship deal is said to be worth $400 million over 20 years, or $20 million a year. What’s unknown is how much money is collected when a sponsorship deal is struck, but a window toward the answer to that question was provided in last year’s Las Vegas Stadium Construction Monitor Report.
The Stadium Progress Report dated November 2019 has this note:
LV Stadium Events Company (“StadCo”) submitted its monthly project report on October 31, 2019, providing a general overview of the status of: (1) design planning; (2) the project budget; (3) the construction schedule; (4) permitting, licenses and approvals; (5) compliance with various provisions of Senate Bill 1 and (6) compliance with the provisions of the community benefits plan. StadCo cited no variance in the project schedule or the project budget. StadCo did note that it “will be increasing the Sources as third-party funding commitments are put in place to cover sponsorship and concession fulfillment costs reflected in the Uses.” To date, no such budget augmentations have been requested of the Authority.
That wording “sponsorship and concession fulfillment costs” refers to the need to, for example, put Allegiant Airlines name on the stadium. That was done. But there are a range of signage obligations for a score of sponsors that remain outstanding, in other words, not done.
Thqt could point to a situation where the pandemic accelerates the chance that first sponsorship monies are withheld. For example, it may be that the rush to put the Allegiant Airlines name up was to make sure the first payment of $20 million to the Raiders was made by the airline. Now, comes a report that, because of COVID-19, Allegiant Airlines is losing $2 million each day. In addition to the airline’s losses, the Raiders casino partners are taking massive financial hits.
As noted in reports, MGM Resorts has furloughed 60,000 employees and stopped all shows through May 10th in an effort to save money. The San Manuel Casino is “closed until further notice.” Caesars Entertainment started layoffs, and its acquisition by the Eldorado was put on hold.
On the good news front, ROKIT Phones has announced unlimited free calls through their ROKiT Talk service, for all new and existing customers, for 12 months, and to help cope with the pandemic. And Intermountain Health, Reyes Coca-Cola Bottling, Twitch, Credit One Bank, and America First Credit Union, all appear to be weathering the storm, thus far. But, with Allegiant Airlines and the three casinos in dire straights, there will be cutbacks in sponsorship payments, if only to help dig out of the financial mess COVID-19 has caused. That, in turn, impacts the un-finished Las Vegas Stadium.
Still Las Vegas Stadium Off-Site Infrastructure Improvements Not Done Or Funded
And there are still improvements to streets and roads around Las Vegas Stadium, that need to be started, let alone done. The total cost for that has not been officially released, though, since 2017 and the famous, or infamous, Nevada Department of Transportation report. The one that said the off-site infrastructure improvements would cost $900 million.
Stay tuned.
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