Las Vegas has become a sports destination.
Sin City has the National Hockey League's Las Vegas Golden Knights, who call T-Mobile Arena on the heart of the Las Vegas Strip home, and the National Football League's Las Vegas Raiders, who play at the brand new Allegiant Stadium just off the Strip.
Those two teams draw tens of thousands of people to La Vegas each year, helping pack the casinos owned by MGM Resorts (MGM), Caesars Entertainment (CZR), Wynn (WYNN), and others. Allegiant has also hosted a Pro Bowl, the NFL's all-star game, and will host the 2024 Super Bowl as well as a 2023 Formula 1 race.
Both the National Basketball Association and Major League Baseball also have eyes on the city. That might be easier for an NBA team because, in addition to T-Mobile Arena, which could host a team, two NBA-ready arenas are currently in the works.
Neither of those projects requires public funding.
MLB's Oakland Athletics have also been eyeing a move to Las Vegas. In fact, a move has seemed likely for months, with the team vetting multiple sites on or adjacent to the Strip. Those plans, however, likely do require public funding, and that's something Nevada Gov. Steve Sisolak might not be willing to provide.
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Why Might Nevada Pass on Funding a Stadium?
Las Vegas spent $750 million to help the Raiders build Allegiant Stadium. That's a hefty price tag, but the NFL holds more prestige than any other league, with each of the eight home games a team plays being a major draw. In addition, a near-Strip stadium can host major concerts (like the four sold-out BTS shows happening in April).
Stadiums host events that draw tourists, and that's good for their cities. Arenas host large events as well, but Las Vegas already had multiple arena-style venues before T-Mobile Arena was built, so those projects were done without public financing.
"For example, MGM Resorts International and AEG footed the $375 million bill themselves for T-Mobile Arena — home of the NHL’s Golden Knights. Recent chatter for a possible NBA arena in the city doesn’t include mention of public tax contributions," Casino.org reported.
It has been speculated that the A's want $275 million in public funds toward the $1 billion a Las Vegas Strip stadium would cost. MLB Commissioner Rob Manfred has reportedly spoken to Sisolak about the A's moving to Las Vegas and has made clear that it won't happen without some public financing, the New York Post reported.
"Manfred, however, also has signaled to Gov. Sisolak and the A’s that he will not approve the move unless Nevada provides some public financing for a $1 billion-plus, 30,000-seat, domed stadium. That’s because Manfred does not want to set a bad precedent for other owners looking to negotiate their own new stadium deals," sources told the newspaper.
Sisolak faces a potentially tough reelection battle in the fall and public financing for a baseball stadium may not help his standing with voters.
Why Won't MGM and Caesars Step Up?
MGM funding T-Mobile Arena made sense because it brought the first pro sports team to the city playing at an arena that's nestled between a few of its properties. Adding an NFL stadium with public funds also made sense for the city simply due to the prestige of the league.
Major League Baseball lacks that level of prestige. The A's are not a major draw and while 81 home games will likely draw from tourists already coming to the city, the team is less likely to make a big impact on overall tourism.
The largest employer in the city, MGM, does not appear to support a baseball stadium, according to the Post.
"MGM initially objected to building the Raiders stadium but was persuaded that 75% of fans going to Raiders games and other events at the stadium would be tourists, many of whom might not be in the city otherwise, a source familiar with those talks said," the paper reported.
In this case, it's hard to argue that fans of out-of-town teams will make trips to Las Vegas just to see a baseball game (especially because MLB tickets for regular-season games are easy to come by). That makes the A's less appealing for the governor, MGM, Caesars, and other potential sources of funding.
