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?
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter1: The Economic Approach
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Problem 10CQ
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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?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F85196eab-fa08-4801-8819-7da3ba018308%2F28b30093-a95d-4e8f-b320-7ae9d378dfc1%2F1jzh399_processed.jpeg&w=3840&q=75)
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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