The biggest thing that has really bugged out some people is the “zero” rent terms. It’s indeed true that the Raiders will not pay a yearly sum for use of the stadium, but they’re paying all that up front. $900 million dollars plus, roughly.
You see, the owners of the stadium and land will be the LVSA, IE: the Tax Payers of Nevada. So that $900-plus million is basically the Raiders lease payment in one, upfront, lump sum. Let’s spread that out shall we:
- 30 years would be $30 million+ a year
- 40 years would be $22.5 million+ a year
- 50 years would be $18 million+ a year.
As you can see, the longer the Raiders stay at the stadium, the better their return on their investment becomes.
Speaking of which, the minimum term is 30 years. Likewise, sources the Raiders are also negotiating the option years. It’s expected, but not guaranteed that these will be four, maybe five-year options for the StadCo.
Another issue that is still being negotiated is the “No Move” clause. However, it’s in the Raiders interest not to move. Not only that, but Bank of America is also expected to have their own “No Move” agreement with the Raiders until the loan is satisfied. There’s the standard “NFL Premium Venue” escape clause, but for better or worse, the Raiders would have to be hard pressed to enact it.