Las Vegas Raiders could lose $30 million local partnership due to COVID-19 fall out

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Allegiant Stadium, home of the Las Vegas Raiders

May 29, 2020; Las Vegas, Nevada, USA; General overall aerial view of Las Vegas Raiders helmet and Wilson 2020 NFL The Duke official football at the Allegiant Stadium construction site. The stadium will be the home of the Las Vegas Raiders and the UNLV Rebels football teams. It is located on about 62 acres of land west of Mandalay Bay at Russell Road and Hacienda Avenue and between Polaris Avenue and Dean Martin Drive, just west of Interstate 15. Construction of the $1.8 billion stadium began on September 18, 2017 and is expected to be completed on July 31, 2020, in time for the 2020 NFL season and the 2020 NCAA season. Allegiant Stadium will serve as site of the Las Vegas Bowl beginning in 2020, which will feature a Pac-12 football opponent versus either a Big Ten or SEC opponent, as well as the 2020 and 2021 Pac-12 Football Championship Game. Mandatory Credit: Kirby Lee-USA TODAY Sports

The Las Vegas Raiders continue to be one of the hardest hit sports entities when it comes to the economic impact of the ongoing COVID-19 pandemic.

The Raiders already announced that they will not host fans at the $1.86 billion state-of-the-art Allegiant Stadium off the Vegas strip for their inaugural campaign in the desert. Now comes another major hit.

Raiders set to lose $30 million local partnership due to COVID-19

The Raiders were nearing an agreement on a 10-year, $30 million commercial partnership with the Southern Nevada Water Authority ahead of the season. That’s no longer going to be the case.

“We did not enter into any sponsorship agreement with the Raiders, and have no plans currently to do so at this time,” Scott Huntley, the Southern Nevada Water Authority senior manager of public services, told LVSportsBiz.com. “Both [the length and value of the deal] were problematic, especially now that we are reducing budgets significantly in light of the pandemic situation.”

The $3 million in annual revenue this would have brought the Raiders seems to be minor in the grand scheme of things. Though, it’s just the latest indication that owner Mark Davis and Co. are going to be dealing with wide-ranging ramifications due to the current economic downturn.

Related: Latest news on Raiders’ Allegiant Stadium

It was noted earlier in the week that the Raiders are set to lose an NFL-high $571 million in revenue for the 2020 season alone due to not being able to host fans at their new venue in Las Vegas. These are just two recent examples of just how much the team has been impacted.

Given that Davis himself is worth a mere $500 million, any revenue loss after building a near $2 billion stadium is going to impact his bottom line.

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