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In 2020, the Oakland Raiders moved to Las Vegas. As part of the arrangement, the city agreed to contribute $750 million towards the construction of the stadium (The total cost is estimated at $1.8 billion). Because there are only 8 or 9 NFL games per season that will be played at the stadium, the direct revenue from the games will not come anywhere close to $750 million any time in the near future. Why then, is the city willing to contribute such a high amount to the construction of the stadium?

In 2020, the Oakland Raiders moved to Las Vegas. As part of the arrangement, the city agreed to contribute $750 million towards the construction of the stadium (The total cost is estimated at $1.8 billion). Because there are only 8 or 9 NFL games per season that will be played at the stadium, the direct revenue from the games will not come anywhere close to $750 million any time in the near future. Why then, is the city willing to contribute such a high amount to the construction of the stadium?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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In 2020, the Oakland Raiders moved to Las Vegas. As part of the arrangement, the city agreed to contribute $750 million towards the construction of the stadium (The total cost is estimated at $1.8 billion). Because there are only 8 or 9 NFL games per season that will be played at the stadium, the direct revenue from the games will not come anywhere close to $750 million any time in the near future. Why then, is the city willing to contribute such a high amount to the construction of the stadium?
Transcribed Image Text:In 2020, the Oakland Raiders moved to Las Vegas. As part of the arrangement, the city agreed to contribute $750 million towards the construction of the stadium (The total cost is estimated at $1.8 billion). Because there are only 8 or 9 NFL games per season that will be played at the stadium, the direct revenue from the games will not come anywhere close to $750 million any time in the near future. Why then, is the city willing to contribute such a high amount to the construction of the stadium?
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