The glitzy $1 billion expansion promised no cost to the university — but behind the scenes, lobbyists and lawmakers are being asked to help foot the bill.
When Alex Meruelo stood beneath the flashing lights of a Grand Sierra Resort nightclub in 2023, surrounded by Wolf Pack mascots and school officials, he was clear: the new basketball arena wouldn’t cost the University of Nevada a penny.
That was the headline. The fine print? Quiet meetings, strategic hires, and a push for public dollars to help make it happen.
Behind the Curtain: Lobbying for Legislative Favour
While the stage presentation was flashy, the behind-the-scenes efforts have been far more muted. In early 2024, Meruelo’s team began hiring lobbyists and political consultants in Carson City. Their goal? Line up support for legislative tools that could include tax breaks or direct subsidies for the $400 million arena.
There hasn’t been a big press release. No ribbon-cutting or open calls for community input.
But there have been closed-door briefings and hallway conversations.
Two people familiar with the meetings said the ask wasn’t for a blank cheque — but for help making the numbers work. “They’re asking lawmakers to be creative,” one source said.
Why the Sudden Pivot to Public Financing?
Meruelo’s original promise echoed loudly: no cost to the school, fully funded by private dollars. But construction costs have surged. Interest rates are up. And the Reno tourism economy, while growing, still lags behind Las Vegas.
The pitch now leans on potential benefits to the region: more jobs, more visitors, more tax revenue. Supporters argue that it’s not about bailing out a billionaire — it’s about investing in Reno’s future.
Still, the optics are tricky.
This isn’t just another hotel wing or convention space. It’s a 10,000-seat arena that would become the new home for the Nevada Wolf Pack. That makes the idea of public money a political hot potato.
And yes, people are talking.
Here’s What’s On the Table So Far
The legislative “help” hasn’t been fully defined yet, but sources close to the discussions say several options are being floated:
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Redirected sales taxes from the resort back into the project
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A special improvement district to fund infrastructure
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Low-interest state-backed bonds
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A mix of deferred tax payments and incentives tied to job creation
None of these mechanisms are new to Nevada. The T-Mobile Arena in Las Vegas was privately financed, but Allegiant Stadium for the Raiders? That got $750 million in public funds through hotel room taxes.
Tension Builds Among Local Stakeholders
Inside city government and the university system, not everyone’s thrilled.
Some see the proposal as a playbook move — go big in public, then quietly pivot to government support. Others are torn. “Of course we want investment in Reno,” one city council member said privately. “But we’ve got potholes and housing issues. That matters too.”
University of Nevada President Brian Sandoval has so far stuck to Meruelo’s public line — the school isn’t on the hook. But even that has limits.
The team plays in Lawlor Events Center, a decades-old facility owned by the school. If a flashier venue opens off-campus, with or without school dollars, where does that leave the university’s role in athletics?
A Look at the Money: Reno vs Vegas Arena Projects
To put things into perspective, here’s how the Grand Sierra Arena concept compares to other major Nevada venues:
| Arena Project | Location | Cost | Public Funding | Capacity |
|---|---|---|---|---|
| Grand Sierra Arena | Reno | $400 million | TBD | ~10,000 |
| T-Mobile Arena | Las Vegas | $375 million | $0 | 17,500 |
| Allegiant Stadium | Las Vegas | $1.9 billion | $750 million | 65,000 |
Reno’s economic footprint is smaller. Its politics are more localised. That means the calculus is different — both financially and socially.
The Silence Might Not Last Much Longer
So far, there’s been no formal public ask. No bill. No statewide campaign. But insiders say one could drop as soon as this summer.
Timing matters. The 2025 legislative session kicks off in February. Before then, lobbyists will need to line up allies, defuse critics, and prepare a package they can sell to skeptical lawmakers.
There’s also a wildcard: local voters. While the arena doesn’t technically need their approval, any public dollars could prompt backlash. Especially if the rollout lacks transparency.
Meruelo’s Bigger Bet on Northern Nevada
For Meruelo, this isn’t a one-off project. The Grand Sierra Resort is his flagship property in the region. The arena is part of a larger plan that includes:
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A new hotel tower
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Expanded casino floor
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Upgraded convention space
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Retail and dining additions
He’s gambling that Reno can become more than a “mini Vegas.” But to pull it off, he may need more than optimism — he might need public cash.
And that’s where things start to get complicated.
