The already-precarious situation of an Oakland Raiders Las Vegas move has become more entangled.
Oakland Raiders Las Vegas Move Muddled by NHL
When the National Hockey League announced where it was expanding, questions about how that would affect the Raiders became legitimate. These include:
- Can Las Vegas sustainably support two professional sports franchises?
- Was the lack of any professional sport entertainment competition a reason why the Raiders were considering Las Vegas?
- Will this create a sense of urgency in the Las Vegas group trying to bring the Raiders to town?
The strengths and weaknesses of Las Vegas as a sports market
Las Vegas’ greatest strength as a sports market is an abundance of potential corporate sponsors with deep pockets. Casinos, resorts, etc, are prime fodder for cross-promotion. The Raiders have a proven product in National Football League games. Because of these things, they should have no trouble selling sponsorship of every aspect of those games.
It’s easy to consider the same element a weakness, however. Building a dependable customer base out of a tourist population is a challenge. Residents bring their fan loyalties in with them. Those casinos and resorts will in some ways act as competition for people’s limited entertainment dollars.
With a population estimated at just under 614,000 in 2014, those hopeful to bring the Raiders in Las Vegas can look to one success story; Kansas City. That market contains two professional sports teams, the NFL‘s Kansas City Chiefs and Major League Baseball‘s Kansas City Royals. Las Vegas boasts a population that is nearly 150,000 people stronger.
The local sports culture in Kansas City revolves around both franchises. It’s true that the population in Kansas City isn’t as transient as that of Las Vegas, and that’s an important difference when comparing the two markets. Entrenchment is the kind of success the Raiders would be hoping for in Las Vegas regardless.
Did the Raiders want to own The Strip?
When the talk of relocation began, the possibility of the NHL expanding into Las Vegas was exactly that, just a possibility. That possibility has since become a certainty. How this affects the Raiders depends on their initial motivation for exploring Las Vegas.
The likelihood that the Raiders expected to be the only show in town is minimal. The entertainment and hospitality industries fuel Las Vegas. All indications have pointed toward discontentment with The Coliseum in Oakland and the possibility of a new stadium in Las Vegas being the strongest lure for the Raiders. The presence of the NHL would not affect that if relocation were to happen.
How will investors react?
The Nevada state legislature will play a large part in determining whether a new stadium gets built, as the current proposal calls for public funding. There may be an opportunity for the Raiders while that is sorted out.
Depending on how long a possible relocation takes, the Raiders can use the new NHL franchise in Las Vegas as a “litmus test” for the market. The data collected in such a survey will go a long way toward telling the NFL and Raiders’ brass whether or not Las Vegas is a solid market for the NFL.
On the other hand, the imminent presence of an NHL franchise gives them a head-start in securing the corporate sponsorships and building the fan base necessary to make the franchise a long-term success. Every day the Raiders delay what may be the inevitable, they fall further behind in that game.
Whether or not the Raiders will move to Las Vegas still largely depends on whether or not a new stadium will be built for them and what measures Oakland may take in the meantime to keep the Raiders. What the Raiders have now is time to study the market and in that interest, the NHL may make an assist.
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