Las Vegas Sin City: new sports Mecca?

Big doings on the Strip: NBA coming to town?

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Las Vegas Strip Looking At Massive New Project With $10 Billion Budget
Story by Colin Salao • 11h ago

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Las Vegas Strip Looking At Massive New Project With $10 Billion Budget

Las Vegas is taking another major step in conquering the sports landscape.

Oak View Group, an investment firm that’s focused on sports and entertainment, announced a $10 billion budget for a 66-acre entertainment district in Las Vegas that would include an arena that could house a basketball team.

Tim Leiweke, the OVG CEO, said that the development would not acquire any public funding.

“I think it helps when you walk into a room and say to them, ‘I do not need your money,’” Leiweke said during a conference on Thursday, June 15.

OVG previously said it had budgeted $3 billion for a 35-acre property.

OVG’s arena would likely house an NBA team, and the NBA Commissioner Adam Silver said in early June that the league will look at expansion teams after it resolves its next media rights deal. The league’s current deal with ESPN and Disney expires after the 2024-25 season.

Las Vegas is expected to be a prime candidate for an expansion team, as Silver has already expressed in the past, with NBA Superstar LeBron James already expressing interest as a potential owner.

Las Vegas has continued to grow quickly as a sports hub. The city is just a week removed from celebrating the Las Vegas Golden Knights first Stanley Cup. The Las Vegas Aces also won the WNBA title in 2022.

The city houses the NFL’s Las Vegas Raiders at Allegiant Stadium and will hold Formula One’s Las Vegas Grand Prix in November.

There’s also momentum on the idea the MLB’s Oakland Athletics are expected to move to Las Vegas, once the details are finalized on that stadium.

 

I think they are jumping the gun BIG time, based on the unusual success of The Golden Knights. Most expansion teams struggle for several years building any kind of fan base because they generally start out losing. The Golden Knights won 8 of their first 9 games their first year, en route to an appearance in the Stanley Cup finals. That is unheard of. They made the playoffs 5 of their first 6 years, winning the Stanley cup in this their 6th year. So they had immense immediate interest and fan bases, especially being the first sports team in Vegas. To think that can be duplicated by an expansion NBA team or transplanted worst in the league MLB team, is a pipe dream.

Let's take a look at the Raiders short stay in Vegas. 3 years but first year was covid and no fans. So last year 2022 the Raiders ranked 30th out of 32 NFL teams in attendance. The only thing that prevented them from being dead last was the attendance that the away team brought with them. Over the Raiders final 5 games in 2022, 65% of those in attendance were fans of the away team. Las Vegas was always going to be a destination type place that benefited from the away teams brings some fans with them, but these numbers are crazy and unsustainable. Two-Thirds of the stadium filled with away fans.

I will be majorly surprised if the A's in particular don't do very, very poorly attendance wise. 81 home games, a summer time sport (roof or no roof). A bad team.

They are just moving too fast, based on the early, unusual success of the first team, which won't be duplicated.

 

They may be rushing things, influenced by the Golden Knights' remarkable success. Typically, expansion teams struggle to build a fan base in their early years, often starting with losses. The Golden Knights, however, defied the norm, winning 8 of their first 9 games and reaching the Stanley Cup finals in their inaugural season. They continued to excel, making the playoffs five out of their first six years and winning the Stanley Cup in their sixth year. Being Vegas's first sports team, they naturally generated immense immediate interest and fan support. Expecting this level of success to be replicated by an NBA expansion team or a struggling MLB franchise relocating to Vegas might be overly optimistic.

Consider the Raiders' three-year tenure in Vegas, with the first year marred by COVID-19 restrictions. In 2022, they ranked 30th out of 32 NFL teams in attendance, with away team fans preventing them from hitting rock bottom. Having 65% of attendees in their final five games being away fans is surprising and potentially unsustainable. With 81 home games during the summer, the A's, especially if they perform poorly, may face attendance challenges. This haste to capitalize on the Golden Knights' early success may not yield the same results for other teams.