The Raiders have yet to indicate exactly how much their new Las Vegas stadium will cost, but Nevada could end up paying for even more than expected.
Congress could pass a a tax reform bill that would end federal tax subsidies for sports stadiums. The $750 million in public money that has been pledged towards the Raiders Las Vegas stadium is to be financed through bonds that benefit from these federal tax subsidies.
The total cost of the stadium will not rise. And Clark County’s $750 million contribution will not rise, but the amount of money the county will have to repay for the bonds that back that $750 million could rise.
“The stadium, as designed, appears to meet the definition of a project that could not use tax-exempt bonds,” Jeremy Aguero of Applied Analysis told the Review Journal. “That could potentially affect the financial models we have been using in estimating the potential cost of the project. The extent to which that is is unknown.”
But Field of Schemes has estimated that the new legislation could cost upwards of $100 million.
“Tax-free bonds typically allow an interest rate 1-1.5% below taxable bonds. So adding that much to the financing costs on the state’s $750 million would mean an extra $7.5-11.25 million a year, which over 30 years, converted into present value … I get between $115 million and $173 million worth of added interest costs.”
The Stadium Authority Board is scheduled to meet on Thursday, but the agenda does not include any mention of the possible legislation changes.
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