There’s no need to panic about Oakland losing the A’s to Sin City the way they are losing the Raiders.
Not for a few years, at least.
I’m not going to rehash the market size/potential/franchise competition arguments. I did that 10 years before desperate Raiders fans were doing the same. The simple problem for Las Vegas is that the region, or Clark County in particular, shot their wad in bringing in the Raiders. The vehicle for funding numerous improvements around Clark County, the room tax, is currently 12-13% for most properties in the area. A 0.88% hike for stadium funding would bring the tax to around 14%, probably the most local hotels would be will to swallow, since taxes above that percentage start to become less competitive against other vacation/convention locales such as San Diego, Orlando, or Los Angeles.
The “cap” also becomes important when considering how revenue shortfalls could be addressed at the stadium. The Raiders aren’t being charged rent at the stadium, but they will assume operations and with that, operating costs. If that becomes difficult to handle and the team cries poor, guess what the first source to tap will be? The same one that will provide some $50 million a year to start and is being collected as you read this.
In short, Vegas doesn’t have a funding source for a stadium. And as we saw with San Jose, just offering a site to the A’s on which they’d have to self-fund a stadium is not going to cut it. From a structural standpoint, it simply doesn’t work.
The Vegas talk was triggered by comments from Rob Manfred, who spoke last week on the topic. Manfred has opened to possibility of MLB expansion, which hasn’t been considered since the last round in 1998 (Tampa Bay and Arizona). Expansion can’t happen until the St. Petersburg (ironic) and Oakland (tragic) stadium problems are resolved. And if they aren’t resolved to Manfred’s and the Lodge’s satisfaction, Las Vegas and Montreal remain as relocation threats, no matter how hollow those threats are.
Manfred’s stated support for Oakland over the last couple years is not lip service. He’s giving John Fisher and Dave Kaval space to complete their work, and the City of Oakland time to get its shit together. He didn’t see Oakland A’s Forever!
“Until Tampa and Oakland are resolved, I don’t see us expanding as a practical matter. It could be an expansion or relocation site,” Manfred said. “I understand the demographics and it could work, based on the size of the city.”
Now that the Raiders have one foot out the door, everything can and should come together for a deal that should satisfy practically all in Oakland. If it doesn’t in five or ten years, the Commissioner can and will complain about the lack of progress. He or some heretofore unknown corporate henchman will talk down Oakland’s commitment, just as Eric Grubman did for the NFL and Roger Goodell. I riffed on this when I first heard about Manfred’s comments.
If all goes well, the only role we’ll see involves Manfred wearing a hard hat and holding a shovel. If not, well, you can’t say you didn’t see the plot twist coming.