By: Ethan Donovan and Eli Engler
Back in March of 2017, the Oakland Raiders received approval from the NFL owners to move to Las Vegas. However, the Raiders are now finally moving to their new stadium in Las Vegas and will play there, starting in the 2020 season. The Raiders have been a part of the NFL since 1959 and have played in both Los Angeles and Oakland, but this is their first time playing Las Vegas. Despite moving to Las Vegas, a city associated with gambling, the Raiders and the NFL have said the move has no official ties to the gambling business in Las Vegas.
The Raiders have a history of moving quite often between cities, as they started as a franchise in Oakland, but moved to Los Angeles in 1982. Just 13 years later, they moved back to Oakland. Other NFL teams are currently experiencing similar problems to the Raiders, as the Los Angeles Chargers and Los Angeles Rams recently moved from San Diego and Saint Louis, respectively. NFL Commissioner Roger Goodell does not believe team relocation is good for the NFL, saying “We work very hard, and never want to see a relocation of a franchise.”
The main reason that the Raiders are moving to Las Vegas is the stadium issue that the Raiders had in Oakland. The Raiders were in need of a new stadium since 2015, but Oakland’s proposal for the new stadium was rejected by the NFL. In 2016, Los Angeles sent a proposal for a stadium for the Raiders as well, but the NFL rejected their proposal too. Finally, Las Vegas sent in a stadium proposal that was accepted by the NFL. The new stadium in Oakland will be funded both privately and publicly, something the city of Oakland refused to do. In total, the stadium will cost $1.7 billion, with $750 million of public funds being invested in the stadium. Bank of America will also help to finance the stadium.
So will the Raiders be successful in Las Vegas? History has no definite answer. For some NFL teams, relocation has been a catalyst for positive change. After the 1963 Chiefs moved from Dallas to Kansas City, they have won the Superbowl and reached the playoffs 17 times, cementing a long and fruitful future as a franchise. The Browns moved from Cleveland to Baltimore in 1996, becoming the current Baltimore Ravens. The Ravens were revitalized following their move, making the playoffs 10 times in 21 seasons and winning the Super Bowl twice. However, relocations have not all been successful. Some teams were unchanged or even negatively affected, such as the 1960 Cardinals, which were forced to move again after their relocation to St. Louis yielded no more success on the field or monetarily.
So far, the Raiders have appeared to gain financially from their relocation. After announcing their move from Oakland to Las Vegas, their valuation has increased by roughly $1 billion. Prior to the news of relocation, the Raiders were noted as the 31st most valuable team with a valuation of only $1.43 billion. Their current valuation of $2.42 billion makes them the 18th most valuable team in the NFL. The cause of this notable increase is due to the building of their $1.7 billion dollars stadium. The Raiders are expected to make $250 million per year in personal seat licenses, a sum that will be used to pay off the debt they have accumulated from building their stadium.
Furthermore, Las Vegas, a city built off of terrorism, expects to benefit off of the move as well. Per New York Times, Las Vegas hopes to pay off their $750 million contribution to the Raiders stadium through an increase in tourism. Many believe that the city will not see enough extra tourism for this to make a difference, yet others disagree. Jeremy Aguero, an analyst for the new Las Vegas Stadium, predicts 35% of Raider’s game attendees to come from outside the City, each fan staying an average of 3.2 nights and spending $820 per trip. The funds raised from increased tourism coupled with an increase in the hotel tax of Las Vegas is hoped to eventually make the city’s investment profitable.
Sources:
https://www.nbcsports.com/bayarea/raiders/oakland-raiders-are-moving-las-vegas
https://www.raiders.com/history/timeline
https://www.freep.com/story/sports/nfl/lions/2017/01/15/nfl-relocations/96609592/
https://lasvegassun.com/news/2018/sep/25/forbes-raiders-valuation-soars-to-24-billion-after/
The Academy Journal for Global Affairs 