- The financing plan for the stadium includes $750 million in publicly issued tax-exempt bonds. The team and league are expected to contribute $500 million
- The GOP tax reform bill released last week would bar state and local governments from issuing tax-exempt bonds for stadium construction – a common feature of stadium deals over the past two decades
- A Brookings Institution study found that the federal government has subsidized stadium construction to the tune of $3.2 billion since 2000
- The Raiders will continue playing in Oakland until they relocate in 2020
By Alex Raskin Sports News Editor For Dailymail.com and Associated Press
Published: 00:10 EST, 14 November 2017 | Updated: 11:34 EST, 14 November 2017
The Oakland Raiders broke ground on their 65,000-seat domed stadium in Las Vegas on Monday as the $1.9 billion project faces significant obstacles, such as a potential ban on the tax-exempt bonds needed for financing.
Contractors will be working under an ambitious timeline as the team wants to kick off the 2020 season at the new stadium. But the Raiders have yet to reach crucial agreements and now stand to lose millions under the tax reform bill U.S. House Republicans unveiled earlier this month.
The Raiders' relocation to Las Vegas was a plan years in the making after NFL owners shot down their plans to move to Los Angeles. Shortly after, casino mogul Sheldon Adelson announced his interest in helping build a domed stadium on the UNLV campus that could be shared with a professional team.

Oakland Raiders owner Mark Davis, center, poses for photographs beside Nevada Gov. Brian Sandoval, left, and NFL Commissioner Roger Godell during a ceremonial groundbreaking for the Raiders' stadium Monday, Nov. 13, 2017, in Las Vegas. After years of planning, dealing and getting millions in public financing approved, the team broke ground on a 65,000-seat domed stadium in Las Vegas, across the freeway from the city's world-famous casinos. (AP Photo/John Locher)
The financing plan for the Raiders stadium includes $750 million in publicly issued tax-exempt bonds. The Raiders and the NFL are expected to contribute $500 million to the project, while the team has also secured a $600 million loan from Bank of America for construction.
But the tax-exempt bonds are now at risk. The GOP tax reform bill released last week would bar state and local governments from issuing tax-exempt bonds for stadium construction, a common feature of stadium deals over the past two decades.
A study on stadium subsidies released last year by the Brookings Institution found that the federal government has subsidized stadium construction to the tune of $3.2 billion since 2000. The staff contracted by the stadium authority has estimated that the bill could cost the public board $3 million a year.
After Monday's ceremony, Nevada Gov. Brian Sandoval said it is his under he is hopeful that any version of his fellow Republicans' tax overhaul proposals won't include that language.


NFL Commissioner Roger Godell speaks during a ceremonial groundbreaking for the Oakland Raiders' stadium in Las Vegas. After years of planning, dealing and getting millions in public financing approved, the Raiders broke ground Monday on a 65,000-seat domed stadium in Las Vegas, across the freeway from the city's world-famous casinos
'I don't know what the fairness of that would be. We already made this deal,' he said.
President Donald Trump has been very critical of the NFL for allowing players to peacefully protest inequality and police brutality by sitting or kneeling during the national anthem. He's gone so far as to threaten to curtail the NFL's tax benefits.
The president's spokeswoman previously said state and local tax subsidies that help finance stadiums should obligate teams to stand for the national anthem before games.
Trump tweeted in October that the government should 'change [the] tax law' because the league is 'getting massive tax breaks while at the same time disrespecting our Anthem, Flag and Country.'
In 2015 the NFL gave up its tax-exempt status, which was awarded in 1942 on the basis that it was a trade association.
However, the NFL does still benefit from states and municipalities that issue tax-free bonds to pay for stadium construction.
'Billions of taxpayer dollars continue to subsidize the construction and renovation of professional sports stadiums,' White House press secretary Sarah Huckabee Sanders said.
'If this industry is going to use money from American taxpayers to build the very fields they play on, is it really too much to ask that they show respect for the American flag at the beginning of the game?'


Oakland Raiders owner Mark Davis, center, pretends to play air guitar beside Nevada Gov. Brian Sandoval, left, and NFL Commissioner Roger Godell during a ceremonial groundbreaking for the Raiders' new 65,000-seat stadium, which will open in 2020
Lobbying began, and the Nevada Legislature approved a tax increase to contribute $750 million to the project. Adelson later withdrew his multimillion-dollar pledge from the project, and the Raiders chose a different site for the stadium.
UNLV and the Raiders will still share the stadium, but the joint-use agreement is pending.
So is an agreement that is meant to ensure the greatest possible participation by the local community in the design, construction and operation of the stadium. The agreement, known as the 'community benefits plan,' has been the subject of public debate during meetings of the Las Vegas Stadium Authority board, the public entity responsible for overseeing the stadium.
A draft the team presented during a board meeting last week requires that minority and female workers carry out at least 38 percent of construction work hours and 55 percent of operation hours on event days.
While Raiders Executive Vice President Dan Ventrelle described the proposed agreement as the most aggressive ever for a stadium project, board members expressed concerns over the hiring targets.
Prince protegee Judith Hill opened the ceremony with a rendition of Andra Day's song 'Rise Up' as police, firefighters, EMTs and other members of the local community walked through a temporary venue to a standing ovation. Fifty-eight beams of light shone behind the stage, each representing one of the victims of the October 1 attack, which was the worst mass shooting in modern U.S. history.
Longtime Las Vegas entertainer Wayne Newton, musician Carlos Santana, New England Patriots owner Robert Kraft and Hall of Famers Howie Long and Fred Biletnikoff were among the crowd that witnessed state and local officials as well as team leaders turn dirt with shiny shovels emblazoned with the Raiders logo.
'Only in Vegas can you turn a ground-breaking ceremony into a show,' Goodell said after the event.


Buildings in Las Vegas reflect the light at sunset before a ceremonial groundbreaking for the Oakland Raiders' stadium Monday, Nov. 13, 2017, in Las Vegas. After years of planning, dealing and getting millions in public financing approved, the Oakland Raiders broke groun Monday on a 65,000-seat domed stadium in Las Vegas, across the freeway from the city's world-famous casinos. (AP Photo/John Locher)


Oakland Raiders owner Mark Davis speaks during a ceremonial groundbreaking for the NFL football team's stadium Monday, Nov. 13, 2017, in Las Vegas. (AP Photo/John Locher)


Nevada Gov. Brian Sandoval speaks during a ceremonial groundbreaking for the Oakland Raiders' stadium Monday, Nov. 13, 2017, in Las Vegas. After years of planning, dealing and getting millions in public financing approved, the NFL football team broke ground Monday on a 65,000-seat domed stadium in Las Vegas, across the freeway from the city's world-famous casinos. (AP Photo/John Locher)


Oakland Raiders owner Mark Davis speaks during a ceremonial groundbreaking for the NFL football teams stadium Monday, Nov. 13, 2017, in Las Vegas. (AP Photo/John Locher)


58 lights are on display for the 58 victims of the Las Vegas shooting during a ceremonial groundbreaking for the Oakland Raiders' stadium Monday, Nov. 13, 2017, in Las Vegas. After years of planning, dealing and getting millions in public financing approved, the Oakland Raiders broke ground Monday on a 65,000-seat domed stadium in Las Vegas, across the freeway from the city's world-famous casinos. (AP Photo/John Locher)


Oakland Raiders President Marc Badain speaks during a ceremonial groundbreaking for the Oakland Raiders' stadium Monday, Nov. 13, 2017, in Las Vegas. After years of planning, dealing and getting millions in public financing approved, the Oakland Raiders broke ground Monday on a 65,000-seat domed stadium in Las Vegas, across the freeway from the city's world-famous casinos. (AP Photo/John Locher)


Fifty-eight lights are on display for the 58 victims of the Las Vegas shooting during a ceremonial groundbreaking for the Oakland Raiders' stadium Monday, Nov. 13, 2017, in Las Vegas. After years of planning, dealing and getting millions in public financing approved, the Oakland Raiders broke ground Monday on a 65,000-seat domed stadium in Las Vegas, across the freeway from the city's world-famous casinos. (AP Photo/John Locher)
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