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Las Vegas takes next step towards securing soccer stadium

LasVegasStadium_Interior (FindlaySportsLV)

By DAN KARELL

The idea of an MLS expansion franchise in Las Vegas just came one step closer to fruition.

On Tuesday, the city of Las Vegas, Findlay Sports and Entertainment, and the Cordish Companies released a non-binding term sheet that details how and where a stadium for a potential MLS team would be built. The term sheet claims that it will cost an estimated $410 million for the new stadium, interest on bond payments, and the MLS expansion fee, with the public covering 31 percent of that cost.

“We are very excited for the opportunity to bring Major League Soccer to Las Vegas,” Justin Findlay, managing partner of Findlay Sports & Entertainment, said in a statement. “We’ve been working hard with the city of Las Vegas and the MLS to make this a reality. It will be extremely exciting for us and our community to have its first major professional sports team.”

Findlay, a Las Vegas native and an executive at one of the largest car dealerships in Nevada, founded the sports and entertainment group to secure an MLS expansion team.

Cordish is a national real estate developer specializing in casinos, festival spaces, and commercial revitalization projects such as the Power & Light district in Kansas City, Mo.

The open-air stadium, which would be located in Symphony Park and have a capacity of anywhere between 19,000 and 24,000 seats, is expected to cost an estimated $200 million, with the public contributing 41 percent of the costs associated with its construction.

However, the Las Vegas Review-Journal received a document that states the public will be expected to fund 75 percent of the stadium costs, in addition to infrastructure improvements around the land. This contradicts the claim that 59 percent of the stadium costs will be covered through private sources.

The term sheet will be voted on by Las Vegas City Council at their next meeting on Sept. 3. If approved, no stadium would be built unless MLS awards Las Vegas with an expansion franchise.

In addition, if approved, the Findlay-Cordish partnership would draft a binding agreement to present to City Council in Dec. 2014.

Looking closely at some of the numbers, the deal seems like a solid one for the city, at least in comparison to other stadium deals that have used almost all public money for the construction and renovation of property.

The term sheet claims that the Findlay-Cordish partnership will be responsible for any cost overruns associated with stadium development, the partnership is responsible for operating losses over the first 30 years, and city funds used to repay bonds will come from tourist taxes already in place, ensuring that no new taxes will need to be passed.

It’s interesting to note that a fact-sheet released by the city, Findlay and Cordish, claims the MLS expansion fee will be $100 million, the same amount that it reportedly cost Manchester City and the New York Yankees to buy into MLS to operate New York City FC. Orlando City SC’s expansion fee was reportedly only $70 million.

The fact-sheet also includes four other MLS stadiums that were reportedly publicly funded at higher levels, including the Chicago Fire’s Toyota Park, which was 100 percent publicly funded and has led the surrounding areas into massive debt.

One factor that hasn’t been noted yet is the average summer temperature. While Las Vegas may be nice in the winter, it is be located in the valley of the Mojave Desert. According to the Weather Channel, the average high daily temperature in Las Vegas during the MLS season extends from 71 degrees F in March, to 105 degrees F in July, to 83 degrees F in October.

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What do you think of this news? Do you like the idea of MLS coming to Las Vegas? Think the heat would be a problem? Do you see MLS expanding here in the future, even if not by 2020?

Comments

  1. Vegas is not known for being a good sports town. The NBA tried to curry interest in a franchise and had an All-Star weekend there a few years ago. It led nowhere.

    Cordish is legit. They did the Kansas Power&Light that was featured so much in fan shots during the recent WC. That sort of development is their bread and butter, with open arcades, music, etc, next to a stadium.

    Reply
    • +1 on Cordish. Having a credible partner to handle the development is very important. I still think the management team may need some “beefing up” in order to get this done. From all I can gather the Findley Sports & Entertainment group has exactly zero experience in Sports & Entertainment. Don’t get me wrong– everybody has to get started somewhere and I think it’s great that Mr. Findley has been willing to take on this project so aggressively out of his apparent passion for soccer. And he has done well as a businessman in Las Vegas, which would add some value. But I don’t think he’ll be able to get this done based on that. He’s got to bring on some more new partners or team members with the scrutiny he’ll face.

      Reply
  2. So many people citing Las Vegas’ “average high temperature in July.” Well, guess what? The average low in July is ~70F.

    There’s no rule that teams must play when the temperatures are their highest. Play after sunset when the temps are in the 80s and low 90s.

    Reply
    • Remember that Las Vegas has the worst heat island effect in the nation at an average 7.3 degrees F above the surrounding rural areas. When I grew up in Phoenix in the 1970s the nights would actually cool off pretty well. No longer. It’s not unheard of for overnight lows to remain above 100 during the hottest times of the year, certainly the high 90s are nothing unusual. Las Vegas fares even worse in this regard.

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  3. Someone give me some glaring clue I’m missing:

    The last time I was in Vegas, on the strip, during the summer it was 118 degrees. I kid you not. 118 degrees! Summer highs in the teens are not uncommon. The temperature quotes in this article are averages. How does the city, club and league justify that? Ridiculous from where I’m sitting…and it sure as hell is not in a soccer stadium in Vegas during the heat!

    If the league were to switch to the FIFA calendar, which at this point we can all pretty much agree isn’t going to happen, I could see it.

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    • And even if MLS were to switch to a FIFA calendar (agreed a huge if), keep in mind that games would be played from August to May (or even into June with playoffs) As someone who lived in Phoenix for 20 years, I wouldn’t think about attending outdoor games during half of those months without a roof. The heat island effect makes even night games unappealing during the hottest times.

      The other knock against Vegas is the gambling temptation. No other league has expanded here before, and I can’t help but feel that avoiding perceptions of tainted games might have something to do with that.

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      • The heat is what it is.. Wish there was a usl or nasl team around that could shed some light on how local LV fans feel about watch soccer in the warm months.

        Gambling industry & Sports would be a huge frontier for North American sports. Everyone else has been afraid to bridge the gap but i think soccer should go for it. Betting is a huge part of soccer world wide and big sponsors are present in every league. You can bet (pun) that they would like to invest in MLS if allowed and a Nevada based team would a nice step.

      • We don’t have to take the risk, let them run their own Orlando City for a few years and establish bona fides. The best thing MLS did in the 00s was simply pick off pre-existing sides with decent fan bases. The current era is getting more risky because they’re letting ownership groups with no minor league soccer and no stadium built, wag the dog. Let the minors test the teams for us. We don’t have to guess. We can pick the gimmees already tested by someone else.

      • beto…I’m not sure exactly what you mean when you say the heat is what it is. It sorta reads like you’re suggesting that it should just be endured. But I would argue that is a poor choice from not only the spectator perspective, but also, more importantly, the player perspective. A few games in Qatar over a world cup is one thing…but imagine a whole season of home games in that armpit! No thank you. Send ’em up to Reno instead. Geez, even Denio Junction looks better at this point.

      • Just saying thats not changing. Not sure if LV fans will attend or not all season. I do think that it is a market well worth the risk.

        But Imperative Voice makes the best point; MLS shouldn’t have to negotiate with unproven soccer cities. If you want to join the first division you have thrive in the second or third first.

      • Gambling on soccer is a worldwide thing, but this is something to be contained, not embraced. Match fixing is a problem that plagues too many leagues around the world and it seriously jeopardizes the integrity of the game. I’m not saying an LV franchise would start match fixing in MLS, but other leagues have avoided Vegas for a reason, and the league may want to consider what kind of public perception this expansion might produce.

      • I live in LV and am part of the gaming industry and I can assure you that the last place a max fixer would be placing his bets would be in a Nevada casino. Why operate in a regulated environment in a jurisdiction where cheating is a a crime that sends you to prison when you can operate in the gray market with impunity?

  4. It would be fun going to an MLS game next time I’m in Vegas. That’s the only thing going for this bid.

    Thinking rationally, this is a horrible idea.
    1) Turf field
    2) Publicly-financed stadium

    Not so worried about the heat being a Dallas fan. It can be mitigated with 8pm start times.

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  5. This is a crazy story.

    One, $410 million ? I am more optimistic about MLS than anyone. $410 million ?

    Two, is there any proof at all. Any hint that Las Vegas would support ? How about to support a $400 million investment ?

    Three, it is hot there. They were talking roof before. And I am not talking oh yeah I live in the south hot. I am talking when it is “cold” there it is hot.

    I don’t know enough to be opposed, but man this is one crazy story.

    Reply
    • I’m sure Vegas looks at it as, we’re a sports town, we just need a chance to prove it. So they will overspend on a MLS stadium idea to make a point to all the other sports they want to chase. Kind of like the NFL teams that hunt down a MLS expansion team to diversify the potential tenant list beyond themselves.

      In PT Barnum terms, they need a sucker. If they get a foot in the door with MLS maybe the floodgates open. But the question is if we want to take the risk for them. Based on their AAA baseball attendance, no. Like people are saying about Florida, they have other things to do and don’t care. And since Vegas doesn’t scream soccer to me, I think those pushing it in Vegas really have bigger fish they want to catch and fry.

      If you want to give someone soccer, give it to Sacramento, Indy, or SA, someone already showing up.

      Reply
      • I think you’ve hit it as far as the city’s motivations are concerned. This is about breaking long-standing inertia among major sports teams, who have flirted with Las Vegas for years now. They’ll make life easy on whoever wamts to move first and be the team to prove the case they have been making.

        As a minor modification,I would not necessarily say they are looking for a “sucker”– as a failure for the “demonstration model” would be a disaster with regard to the future opportunity. They want sophisticated money to ensure a good execution — he generous public financing sends the message that they are actually willing assume the risk of the “sucker” themselves if need be.

        A poster above mentioned that AEG/MGM may be entering the market with an NHL team in advanced stage development. In ways, this is another concern. While the two ideas have many differences, rangng from siting to calendar to target demographic, it could still be a very bad idea for the two to enter the market simultaneously (this looks very possible if both continue successfully from their current positions). Because the first thing they’ll both want to chase down is a credible season-ticket holder base, and it’s uncommon for an individual or househould to hold more than one sport, let alone purchase two new packages for new teams.

        I’m skeptical on this, too.

  6. “Looking closely at some of the numbers, the deal seems like a solid one for the city, at least in comparison to other stadium deals that have used almost all public money for the construction and renovation of property.”

    Ok, this statement is ridiculous. Yes, it’s a great deal as compared to some other objectively horrible deals. Just because some other city agreed to a worse deal doesn’t make this one a good deal. I guess I don’t personally care since I don’t live in Nevada, but it’s hard to see how it benefits the public to pay for 60% of the costs for a soccer specific stadium…

    Reply
    • You have to also take into account that cost projections for public projects in LV are almost universally bogus. Although I think the Findlay group is sincere in wanting to bring soccer to LV the city council members will be voting based upon which of their family / cronies own the contracting firms that will be getting the fat contracts. Believe me when I tell you that none of this is going to happen unless the good old boys get taken care of.

      Reply
    • I love soccer and I truly want to see it grow in the US, but do we really want to be part of this culture of public financed stadiums?

      The city will pay 75% plus infrastructure. No mention made of tax leniency, but who knows?
      That money could be put to better use by government services or you could give it back to the tax payers who earned it.

      MLS is money making enterprise that should be left to build their own storefronts. Otherwise they should be splitting profits with those who financed it

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      • Nothing wrong with any of these points, but remember there is a significant self-interest in this situation that Las Vegas has in mind. The MLS team isn’t really the end-game for them. They have coveted professional sports teams for the better part of 15 years. And they’ve gotten serious looks from the major American leagues. But it’s risky– nobody knows with any certainty what kind of fan-base they will attract. And as such, nobody has been willing to be the first to “take the plunge”.

        This idea is as much about Las Vegas showing these guys that it can work as it is about MLS expanding there — in all likelihood, they are the the “real” targets of the strategy. But Las Vegas needs a demonstration model to break the inertia. And now more than ever, they need a new industry in town because gaming and real estate have gone stagnant. I doubt they plan on offering these sweetheart financing packages to everyone, but it would make sense to put it out there for whoever is willing to move first.

      • “But Las Vegas needs a demonstration model to break the inertia.”

        What do you expect Las Vegas to do? Roll over and die?

        Pass on dealing with MLS because of their corrupt soul might stain the wholesome reputation of the game in the US? And if it gets really bad it might even tarnish that model of morality FIFA? God forbid someone might stain Sepp Blatter’s reputation.

        We wouldn’t want anyone in the world to think that soccer could ever be touched by corruption.

    • exactly….. except I care, not bc I am from NV , but bc LV was one of the worst hit with foreclosures. LV should be investing in schools and MLS should be growing American soccer with promotion and relegation not extorting new cities for stadiums.

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  7. I love it how 18 of the 20 field players are clumped together in the corner by the corner flag. The artist has a clear understanding of the game!

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  8. Do they really expect to have a solid fan base?

    Between the NHL and MLS im baffled as to why Vegas would be choice #1 (other than $$$$) for expansion cities..

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  9. Las Vegas as a city has no long term future. Lake Mead is at historical lows and there are no other sources of water to draw on in that desert.

    Reply
    • If you have ever been there and I used to go all the time, when they HAD water…..
      uou just look around and think this is crazy people are living here in mass quanities.

      Reply
    • +1 I was out at Lake Mead a couple months for an open water race my gf was in, and it is jaw-dropping how much the water level fell in just one year. But we continue barging right past these things because somebody always solves them…. right? Let’s hope so, cause I think there’s probably enough left on the remaining footprint to support 2-3 more ice bucket challenges, and then Lou Gehrig is going to have to find other sales pitch,

      Reply
  10. A radio station in Vancouver has a reporter claiming that NHL is all but a done deal to expand to Vegas. Not sure about the implications, if any on stadium financing. There may be some overlapping fan base??? But I don’t know anything about Vegas to know if it is a significant overlap. Local sponsorship could get split. An NHL franchise plus soccer starting up in the same time frame would re-paint the sporting landscape in LV and even the SW.

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  11. They’re going to run into the problem all Florida teams have…no one is from Vegas, they just move there. Those people have no loyalty to the local teams, they have loyalty to the teams from where they grew up. This is why, for example, Yankee fans outnumber Rays fans every time they play in Florida.

    And that’s not even mentioning the weather…average July high is 104. Average temperature in Doha, Qatar in July? 106. You cannot be against playing in such awful temperatures in the World Cup and be OK with guys playing in Vegas.

    Reply
    • You have to play the games after sunset and it isn’t all that bad. That said, it makes it difficult to bring your kids and that is a big problem for LV. I live in LV and there is a HUGE youth soccer presence of which Findlay is a major sponsor and I think that these kids and their families would have to come out in numbers if the team is to succeed. Some other commenter was dead right when he says that LV is a transplant city with transplanted rooting interests so getting the youth to come is key.

      Reply
    • From everything I’ve learned to this point, I have to concur. At various points over the last 15 years (maybe more… just an estimate based on memory) I’ve heard credible news items involving major American sports teams evaluating a Las Vegas expansion team. And this would seem to be the question that nobody has been willling to take a bet on. I
      Las Vegas is an odd place with a unique demographic and identity. In many ways it is even more disorienting and difficult to guage when you are not in the tourist parts. Everybody seems to be there for a different reason, and few seem satisfied with their circumstance as a permanent situation. Is there a “community” here at all that is likely to get behind this? What is this community doing with their free time/money now? Hard to know… I don’t know how much any of them really feels a sense of “community”, but I could be wrong.

      Then there’s the heat.

      Reply
  12. Has no one mentioned the heat yet? It’s a desert, we’re talking about playing a game that’s one of the most taxing in pro sports and we’re considering playing in a desert in the summertime. Has no one mentioned this?

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    • Honestly the weather is such an issue, I mean forget playing in that heat, who wants to sit in a stadium in the sun when it’s 100+ in the shade. This is as ridiculous as playing a World Cup in the desert in summer. I mean no one would suggest something that silly.

      Reply
      • Limey hits it right on the head. I live in Las Vegas and so long as the games are not played in direct sunlight pro athletes should be able to perform (there is a vibrant rec league culture that comes out after dusk). That said, sitting in near 100F heat isn’t pleasant and I don’t think that people will pay money to leave the air conditioned comfort of their homes.

      • Dry heat at night isnt bad even when it is 100F

        Day games would be impossible

        They already play unlv football, no shade, outside Sept-Nov so its just July and August that will be new to LV fans

    • They mentioned in different article that the stadium will have a roof and be air conditioned so no worries about the heat.

      Reply
      • It’s supposed to be open and have swamp coolers, I think it needs to be like the DBacks Stadium with an opening roof otherwise its a non starter for me.

      • An enclosed climate controlled old school dome, perhaps, but if you’ve ever been in one of these retractable roof novelties, certain people get cool and most other people get an outdoor game experience. I wore a jacket and gloves for a fall game in Houston’s Minute Maid park once with the roof closed.

  13. As noted previously, I question if there is reliable fan base with enough disposable income to support this team. Vegas is full of immigrants, but my guess is most cannot afford games on a regular basis.

    Reply
    • 1.9 million in the Vegas metro area. 19% foreign born, but we’re not talking about a refugee camp. What makes you think these immigrants can’t afford a soccer game? If they can afford it in LA, they can afford it in Vegas — and I can tell you the Galaxy over-charge for tickets.

      Reply
      • The Greater LA area has 17 million people and despite this there are always loads of empty seats at the Stub Hub center (although in fairness many are season ticket no-shows) so I don’t think a 1.9 million population is actually a plus.

      • But there are 960,000 in the SLC metro area, and their stadium is always packed, so… I’m the first to admit LA sports kind of suck, and I am an LA sports fan.

      • The household income is slightly lower than LA and their poverty rate is actually lower — presumably because you’d be nuts to gut it out in a scorching cash and carry gambling and entertainment town being poor — but the more important stats to me are sheer population and how they attend their baseball team — they don’t care.

        Add to that the climate, regarding which we should demand a solution more certain than Qatar’s sales pitch.

        Add to that the moral/criminal/financial risks associated with pro sports players living and working in a gambling town.

      • “Add to that the moral/criminal/financial risks associated with pro sports players living and working in a gambling town.”

        So every other US pro sports town has high morals shot through it’s population,no criminals, a wonderful financial climate and no gambling?

      • You are putting them in a place that can create addictions and financial problems specific to Vegas and other gambling towns. There should also be a higher risk of corruption. There is a reason pro sports have generally avoided Vegas, it’s sin city.

        I’ll flip your response back and say if you have a low opinion of athletes’ behavior and lifestyles, you think Vegas improves that or makes it worse? Hmmm? We ban Pete Rose for life and chastize Jordan and Barkley for losing insane amounts of money, but are going to put a team in the gambling capital?

      • The Imperative Voice,

        “You are putting them in a place that can create addictions and financial problems specific to Vegas and other gambling towns. There should also be a higher risk of corruption. There is a reason pro sports have generally avoided Vegas, it’s sin city.”

        “I’ll flip your response back and say if you have a low opinion of athletes’ behavior and lifestyles, you think Vegas improves that or makes it worse? Hmmm? “

        You are exceedingly naïve if you think Vegas offers any more opportunities for personal corruption than any other major city in the US or the world, especially for rich people, which most athletes are.

        You can buy anything you want in New York or LA for example. Anything, as long as you have enough money.

        The reason pros sports have tended to shy away from Vegas is the APPEARANCE not the reality. It is a Hippo-critical stance.

        American pro sports are inextricably entwined with gambling.

        “We ban Pete Rose for life and chastize Jordan and Barkley for losing insane amounts of money, but are going to put a team in the gambling capital?”

        Geography is irrelevant. Ever hear of the internet or online gambling? By the way Lige 1 has a team in Monaco which has a World Famous James Bond type casino. I’ve been in it, nice place. I’m sure Falcao has as well since the principality of Monaco is probably smaller than Houston. And Baltimore just opened a casino right next to M&T Bank Stadium also known as Ravens Stadium as in the Baltimore Ravens.

        Rose, a hall of fame, world class sc+mb+g, played in Cincinnati and Philly never in Vegas or Atlantic City, which did not exactly stop him from being corrupt and getting involved with “shady people” did it?

        Jordan and Barkley, who never played ball in Las Vegas, to the best of my knowledge did not have gambling problems. They had and still have “competition” problems.

        You have a gambling problem if it makes your life problematical.

        You sell your house and cash in your IRA’s to pay gambling debts and still gamble. You alienate everyone in your life and still gamble . You rob, cheat and steal and still gamble.

        Losing all that money meant nothing to Jordan and Barkley who had it to lose and plenty besides that.

        If it had lead to them being indebted to some “shady characters” that would have been another story but as far as we know, it never did lead to that or any of the other behavior I cited and they seem both quite financially sound at present. No trouble, no problem. If you want to see a pro athlete with a real gambling problem look up Art Schlister, former QB of Ohio State and the Baltimore Colts. That is a real gambling addiction. He has a lot of bad people really angry with him.

      • You make the generalizations of a person completely unfamiliar with the town. Las Vegas has a lot of wealth. Many people are attracted to the town because it’s still possible to make a decent wage here without a higher education.

        Gambling is legal in these locations with pro franchises of one sport or another: St. Louis, Baltimore, Cincinnati, Cleveland, Pennsylvania, New York, New Jersey, New Orleans, Indiana, Illinois…..need I go on?

        What moral risks? Unless you consider gambling immoral….if you do I suggest you travel back in time to the century you are from.

        The baseball team is AAA and has been here for around 30 years. It isn’t massively successful but then what triple A team is? If you want a better parallel measure look at the support for the UNLV basketball team.

        Soccer is a huge sport in this town at the youth level.

        My biggest problem is the open air proposal. I do think that is a serious issue.

    • That’s big generalization. You have other than migrants living there plus being brown does not automatically mean that you are an immigrant people can be 2nd or fourth generation, not to mention Nevada was part of Mexico so can you really call them immigrants? Anyway there are more people than just that and there are sir rounding cities that have nothing to look forward to compare to other metropolitan areas that have multiple professional sports teams. Not saying this will be a packed house always but you can’t discount them like that after all this is Vegas where marketing is always on point. One downside is the amount they required from the local government and this article has about three different prices and percentages from the stadium costing 410 to 100. Confusing.

      Reply
      • I’m not Mexican so I’m not on the defensive about them but you need some critical thinking skills. I was saying that because this was part of Mexico at one point you can’t expect there not to be Mexicans. You get over your self righteousness. You’re the perfect example of an ignorant American always forgetting that there’s a past to everything even if it did not start with your kind. And yes I meant “brown” because we know what dude implied, I’m sure he was not talking about the Russian or other Eastern Europe migrant.

      • Wow it’s great to see someone use their ‘critical thinking skills’ here. Now can anyone make any sense of what he said?

      • Good thoughts smarts, I like where you are going with this. Now what we need is some real intellect, where’s NASLinElPaso today??

      • While I appreciate your ability to know everything about me based on my two line comment, as well as the reference to “my kind”, I think your statement is pretty bizarre. The people I’m talking about are people coming from Mexico to the US now. The fact that 200 years ago, Nevada was part of Mexico doesn’t mean that their coming here isn’t immigration because of course it is.

      • slowleftarm

        Dont count on it. There are still guys pushing for Pro/Rel
        and there will be 200 years from now too.

      • Pro/rel would work fine here but if we never have it that’s ok too. The arguments against are hollow but if the people in charge don’t want it, it won’t happen. Won’t stop me following MLS though, nor should it stop anyone else. Well except the fans of teams who won’t get the opportunity to get into MLS because we don’t have pro/rel.

    • I would say that a downtown or easily accessible stadium in a top 25 population metropolitan area that does not already have any major league teams in any of the other four leagues and has shown interest in the sport is likely to have good attendance. Vegas sounds like a winner to me.

      Reply

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