So remember how NFL stadium consultant Marc Ganis said back in June that the Oakland Raiders owners would hate Floyd Kephart’s Coliseum City stadium proposal, because they’d be on the hook for all the construction costs? Well, turns out a Raiders exec said so specifically back in April, in an email obtained and published yesterday by the San Jose Mercury News:
“Simply put, the ‘terms required for the Raiders to commit to remaining in Oakland’ are a plan that fills that funding gap without stripping revenues from the stadium and preserves the current level of surface parking (for tailgating),” Raiders President Marc Badain wrote to Kephart on April 28.
He added that “all revenues from the stadium must be retained by the Raiders.”
Not to belittle the Merc News’s “exclusive” too much, but this isn’t really big news: That the Raiders owners don’t want to have to pay for a new stadium with stadium revenues has been a given from the start of this whole mess. (Otherwise the Raiders could just go and build a stadium in Oakland themselves, without messing around with city “conduit bonds” and the like.) So really what we have here is confirmation that an Experienced Developer doesn’t have any more ability to magically make $400 million appear out of thin air than city officials do.
Ultimately, the question here is whether Raiders owner Mark Davis is willing to pick up his team and move to L.A. — where, keep in mind, he would similarly have to pay for a new stadium out of stadium revenues, though he’d maybe have more stadium revenues to work with, depending on how excited you think L.A. fans will be to buy Raiders PSLs — and whether the NFL will go along with him. Which is going to depend on the same two known unknowns we’ve been working with all along: how lucrative the L.A. market really is for NFL owners despite not coming with any added local cable revenue like in other sports; and how the NFL is going to decide which if any of the three teams jockeying for L.A. (the Raiders, St. Louis Rams, and San Diego Chargers) will be given the go-ahead to move. And there’s so no indication that we’re going to know any of this before the start of 2016 at the earliest.
In the meantime, we can take comfort in the reminder that rich developers are mostly pretty useless, at least as far as turning money-pit stadium projects into money makers for all concerned. Though if someone wants to pay me a retainer to say, “I can build a stadium for the Raiders right now, if the Raiders put up the money,” I wouldn’t say no.