The Raiders proposed move to Las Vegas has hit several major bumps in the road and now must be considered in serious jeopardy.
On Monday casino mogul Sheldon Adelson withdrew his proposed $650 million from the Las Vegas stadium project, citing his dissatisfaction with how Raiders owner Mark Davis negotiated a Raider-friendly lease deal without him. Adelson was also unhappy that the Raiders and the NFL publicly said they could move forward without him with, instead going with Goldman Sachs as an alternate investor.
Well now Goldman Sachs is out too, saying their investment was contingent on Adelson’s involvement with the project.
Without the Goldman Sachs/Adelson investment the Raiders are now on the hook for $1.1 billion of the stadium’s estimated $1.9 billion construction costs. Mark Davis has pledged $500 million which included a sizable loan from the NFL. That leaves Mr. Davis and the Raiders roughly $600 million short. The Nevada state legislature approved $750 million to be raised in a hotel tax, and for now that money is still on the table.
The NFL had planned to vote on the Raiders proposed move to Las Vegas in late March at the owners meetings in Phoenix. Unless the Raiders can secure another major investor before then, that vote is unlikely to happen.
Meantime, back in Oakland, the Lott/Fortress investment group issued a statement which read in part, “We stand ready to work with the team and NFL to keep the Raiders here at home. We have the land available at the existing Coliseum site following the actions of the City of Oakland and Alameda County last December…Bottom line, if the Raiders want to stay in Oakland, we are more than ready to be a partner in making that happen.”