And speaking of “you can’t fire me, I quit” ultimatums, squintillionaire casino baron Sheldon Adelson responded yesterday to Oakland Raiders owner Mark Davis moving ahead with a Las Vegas stadium lease proposal without consulting him by saying fine, he doesn’t want to play Davis’s old reindeer games anyhow:
Billionaire casino magnate Sheldon Adelson has backed out of a deal to help construct a $1.9 billion stadium for the Oakland Raiders, throwing the team’s proposed move to Las Vegas into jeopardy…
“It’s clear the Raiders have decided their path for moving to Las Vegas does not include the Adelson family,” Sheldon Adelson said in the statement. “So, regrettably, we will no longer be involved in any facet of the stadium discussion.”
Adelson blamed conditions named in a 117-page proposed stadium draft agreement, which the team presented at a meeting of the nine-member Las Vegas Stadium Authority last week. He said the draft proposal, which called for terms including $1 annual rent, control over field scheduling and exclusive naming rights for the team, sent “shockwaves” through the community and was a surprise to his family.
“We were not only excluded from the proposed agreement; we weren’t even aware of its existence,” he said in the statement.
This is not entirely unexpected, given that Davis had already indicated he was preparing to pursue the deal without Adelson, even going so far as to line up Goldman Sachs as a financing partner if need be. (Sure, he’d have to repay Goldman Sachs on their loan, but Adelson wanted a cut of revenues or maybe part-ownership of the team to repay his own investment, so potato-potahto as far as Davis’s bottom line is concerned.) And that proposed lease, released last week amid headlines about how Davis only wants to pay $1 a year in rent and keep all the stadium revenues for himself, didn’t mention Adelson at all, so there’s really no reason for anybody to flip out about this.
Flipping out, of course, is precisely what some people are doing:
Elected officials including Clark County Commission chair Steve Sisolak, who had spoken with Adelson earlier on Monday, said the development put the future of the move in jeopardy.
“This is not a wrench in the wheel, the wheel fell off,” he said. “This is an enormous setback in my opinion.”
(It’s “wrench in the works,” not in the wheel, which would be — oh, never mind.)
The issue here is less whether Davis can find somebody else to throw a few hundred million dollars in cash his way in exchange for future payments (that’s exactly why places like Goldman Sachs exist) than what it means politically to lose Adelson, whose connections were what enabled the Raiders to get their $750 million stadium subsidy offer from the state of Nevada in the first place. And while the subsidy legislation has already passed, Davis and the state still need to negotiate that lease, so it’s a bad time to be losing a powerful local friend — something you’d think Davis would have thought through, if you assumed that sports team owners think more rationally than the rest of us, which is probably a bad assumption.
In any event, this is a worthwhile time for Nevada elected officials to remind themselves that the Vegas Raiders stadium plan really is a godawful one, especially when you consider not just that $1 a year rent but that Davis would get all naming-rights, ticket, and even concessions revenue, while the state stadium authority would be on the hook for all operating expenses and even any property taxes, per the team’s proposed lease. While backing away from a deal because Sheldon Adelson isn’t involved in it is usually the exact opposite of what I’d recommend, this might be a good time to make an exception.