By Alan Snel of LVSportsBiz.com
The COVID-19 pandemic has been brutal on hotel room tax revenue paying for Southern Nevada’s $750 million contribution to build the Raiders’ Allegiant Stadium.
But now that Las Vegas visitors are back and paying for hotel rooms, room tax dollars are reaching pre-pandemic levels.
Take a look at the Stadium Authority’s projected room tax revenue for fiscal years 2022 and 2023. The projected $51 million room tax for next year would top the previous record of $49.5 million in fiscal 2019.
The public stadium authority plans to use $40.2 million as part of the fiscal year 2023 budget to help repay annual debt service on the $750 million public contribution to stadium construction domed. Interestingly, the stadium authority has budgeted $2.4 million in personnel, legal and accounting costs. In total, the public stadium panel expects to collect $51 million in hotel room taxes for fiscal year 2023.
The pandemic has resulted in a drastic decrease in Las Vegas visitors, overnight stays and room taxes for the stadium authority. As LVSportsBiz.com reported, the stadium authority had to oversee two earned reserve withdrawals totaling $23.3 million. It’s a stark example of how public agencies that operate with bed and breakfast money are at the mercy of pandemics and economic crises.
Now the debt reserves must be restored to comply with the county’s bond ordinance. Looked:
As you can see by the monthly numbers in the bar chart, hotel room tax dollars are bouncing back from last year’s monthly numbers. In March, for example, hotels in Southern Nevada collected $4.5 million in room taxes, more than double the number in March 2021.
Where does the money come from to pay for the construction of the Raiders’ $2 billion stadium project? (Officially speaking, the Stadium Authority “owns” the stadium. But the Raiders run the place, hiring ASM Global to manage the site. As you can see, the Las Vegas Stadium Authority – it’s you. , the Southern Nevada public – is the top fundraiser at $750 million. It’s worth noting that the Raiders used an impressive $549.2 million in personal seat licenses from people who bought Raiders subscriptions to help pay their share.
The stadium authority engages local lawyers and companies to carry out legal and accounting work.
Here are the people who get paid for legal work.
And billing rates.
Applied Analysis is also a consultant for the stadium authority:
My friends at the Sports Business Journal have done a good job of showing the difference between the tickets given out for a Raiders home game at the stadium and the actual attendance, which is the actual number of people going through the turnstiles and present at the game. A 14.3% no-show rate for the Raiders’ home season is pretty high. Here’s work from SBJ’s Ben Fischer showing actual game-by-game attendance and tickets given out.
Nice job, Ben.
Message of public interest