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“How to Finance a New Oakland Raiders Stadium”

COLISEUM CITY/METRO
A Past Rendition of a New Oakland Raiders Stadium

Please sign this petition to get Cliff Branch into the NFL Pro Football Hall of Fame:

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Yesterday we looked at the Oakland Stadium situation for the A’s and the Raiders and explored the various venues that may work for a new facility.   Today we will look at how to pay for it.

https://jimjax4.wordpress.com/2016/01/25/raiders-stadium-sites-update-video-how-to-morph-levis-a-future-nfl-stadium/

The Truth About Using Tax Payers Money:

Economists have overwhelmingly found that spending public money on stadiums has little economic benefit for the city and rarely creates the jobs and prosperity that the backers promise. This recently was seen in St. Louis with the Rams. The City of St Louis still owes $129 million to pay for the abandoned football stadium now that the Ram’s are leaving. The city of Oakland still owes $100 million from the Al Davis upgrades when the Raiders moved back. The numbers don’t lie. Using tax payer money would be very irresponsible. Some cities selling their souls for teams have done 30 year tax loans. Insanity. New stadiums may help keep the team in the city but the teams are the financial winners in the end.

The First Thing Mark Davis Should Do:

If I were Mark Davis I would hold a press conference immediately. I’d say, “Whatever has happened in the past or with the NFL vote is water under the bridge. I will do anything and everything that I personally can to build a permanent stadium in Oakland for the Raiders. My goal is not to hurt the A’s or the tax payers of Oakland in any way but I want a football only stadium to compete. It’s up to Libby Schaaf, the City of Oakland and my search team to get the funding that is needed.  I have hired Carmen Policy and Disney CEO Bob Iger to help with this process.   If the unfortunate happens and things don’t work out and we have to move, I want it be known that I did everything physically and financially possible to make this work”.

Leadership. That is what is needed. If Davis would do these things, I see a stadium being built no problem. Carmen Policy has MEGA stroke in the bay area.   He is personal friends with many local and state politicians and corporations through out the bay area including Silicon Valley. His winery and his past dealings when he was with the 49ers have made him powerful in the bay area. Disney also obviously has a lot of pull anywhere. Hire anyone affiliated with the Giants/Jets situation or the 49ers new stadium. Anyone that knows what to do and how to get it done.  Now let’s look at the nuts and bolts of the situation.

Ways to Get Revenue For A New Stadium:

  1. Corporate Money:

What the Raiders need for a stadium is lunch money to Technology companies. If you can’t get a sponsor out of Silicon Valley while having the clout of the NFL behind you then you flat out didn’t try or ask. This is the adult world and they are not going to come to you. The 49ers did a great job of doing this and in the end they had their pick of sponsors without using tax money. Knock on doors, wheel and deal. Hello Carmen Policy. If I was Mark Davis there isn’t a door I wouldn’t knock on or hand that I would not shake.

  1. Sell Part Ownership:

Mark Davis is a nice guy but he’s in over his head. Why can’t Mark Davis go to the CEO of Disney Bob Iger or any big wig rich guy and sell off 5-10% of the team. With the money from a new stadium and appreciation Davis will have more money in the end than he could ever imagine. Davis is still the managing general partner and he has more shares than anyone.

  1. Live Streaming:

THINK GLOBALLY. Some of you older fans may say huh? at some of these ideas but its time to think outside the box into tomorrow.

A total of 61% of all revenue is shared by the teams. What ISN’T shared is what the NFL calls territorial revenue.   Any local tv, advertising, merchandise, or other revenue that is created within the teams local radius is totally kept by the team. Last year alone Green Bay made $151 million in Territorial Revenue, $34.9 million in their new local club houses alone; that included online and in person sales.

If I were the Raiders I would approach You Tube and/or Google or Direct TV and create a live stream with the local television affiliate. During the stream you can advertise, sell items or do whatever you want. I would even make a separate app that can be used on all tablets and phones.

When Yahoo did live streams on a few of the NFL games last year, the NFL was shocked at the numbers. In one of the games they had an average of 10-20 million viewers watching the stream every minute. You can taste the advertising money. Now that pales in comparison to television viewers, but you are now thinking globally because many of the people that would watch the games are not in the U.S.   I actually researched the geographical breakdown and the fact is for one game on Yahoo at times 33% of the viewers were NOT in America. Even though we forget it sometimes, the world doesn’t revolve around the U.S. and there are a whole lot of new fresh faces to market to.

You are now entering into a huge untapped revenue source and your popularity can only grow.   ESPN has done it for their college games without announcers. I’ve actually streamed it sometimes and it’s great.   It’s starting small but growing in popularity. Streaming is the future and the present. Concerts are live streamed all the time, so why not NFL locally?

I would do marketing campaigns with local Hispanic, Indian, Chinese and other cultural based channels and advertise the live streaming and the merchandise. I would make the Raiders a world wide brand and market the Oakland Raider nation as a global entity.   When it grows I would then do pre and post game shows in various languages (with advertising) on various foreign channels or stream them. People would drink it up like it’s got the antidote. No one has done this but the Raiders have a large following all over the world. If you can’t make money this way, then you just aren’t trying.

Why do you think dozens of countries are at WWE Wrestlemania and even TNA is now getting into India. GLOBAL MONEY.   Wrestling has been marketing globally long before WWE.  WCCW in Dallas had viewers all over the world they marketed to. I would also begin creating a social media like Twitter or Facebook JUST for Raider fans through out the world.

  1. Guaranteed Tax bonds:

Guaranteed corporate tax bonds are done all the time in the U.S.. The City of Oakland would be responsible for this.   Go to Kaiser Health or another company and ask for a $300 million tax bond so you pay in time. Kaiser has so much money now that they are going to build a college. Health insurances are making hand over fist with the cuts to providers so this is doable.   In the end you can possibly even make a little money after paying it back.

  1. Uber

In smaller ways you can make a deal with Uber. Have a Raider fan app that will be exclusive for games giving Raider fans discounts on fairs in exchange for advertising money and cash.

6.  Sell Office Space:

Another effective way to make money is to sell office space. If you walk in the back of the San Francisco Giants A T & T park, it is filled with medical offices. Oakland has tons of medical offices that would love to upgrade to new office space. This is year round revenue.

  1. Developer Rights and Part Ownership:

This is one that is a favorite of the City of Oakland and they’ve talked about it with Mark Davis and I don’t like it. First of all Mark Davis is obsessed with having a huge area for parking for tailgating. That is great but parking is not a year round revenue source. With BART, parking would be less of a need and would take up valuable land that could give the City and possibly the team year round revenue with stores and other businesses. With a new stadium you could make picnic areas outside the stadium for pre-game partying. Mark Davis also wants complete control of the land.

The City wants to offer a developer cheap land and part ownership in exchange for $300 million; that’s the short fall that is needed to build a new stadium right now. If this was San Francisco or the South Bay near Silicon Valley this is a no brainer that any developer would want. In Oakland, not so much. The City is also offering a 9 acre parcel of land as well. This seems to be a popular hope but in reality I like the previous ideas a thousand times better and I’m not thrilled that this is a good idea.

 

Final Thoughts:

Above are just ideas off the top of my head. Smart people can figure it out if they drop their ego’s at the door.   Too many people trying to be right instead of doing right. Of course they aren’t as cut and dry as I’m putting it but they also aren’t as complicated. Problem is you have ego’s, hurt feelings and insecurity with people in these deals and that’s where things go wrong. Where there is a will there is a way.

The City of Oakland needs to get off their butt and act. It’s also time for Mark Davis to prove people wrong and show the NFL that he is a real NFL owner. Will he hire people to work hard like he did for Carson or will he just have his hand out looking for corporate money from tax payers in cash strapped Oakland while pleading victim.

Do you think for a second that Stan Kroenke created his sports empire by just sitting by waiting for others to give things to him? Do you Think Al Davis would kick a can and say aw shucks, you fix it?

What is needed is confident and competent leadership. We will see if either side has these abilities.  I hope that Mark Davis and Libby Schaaf put in the work and make it happen. Schaaf has to show business and political savvy and Davis needs to stop telling Oakland that he wants to stay and start showing it. The Raider fans have been through enough; Make it happen. There’s lots to do.

 

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“Raiders Stadium Sites Update; Video: How to Morph Levi’s & A Future NFL Stadium”

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Laney College Site For Oakland Raiders Stadium

Where Are They Now In the Process:

Has their ever been a fan base that has gone through more stress than Oakland Fans?  All those years of loyalty and now the Warriors are going.  Are the Raiders staying; are the A’s staying; no fan base is more beat up.  I hope for their sake that things get worked out for the A’s and Raiders.  Oakland is a special place and they deserve much more than they are getting.

Fans and writers now get it.  It would be nice if Mark Davis would now hire Carmen Policy and Disney CEO Bob Iger to help with a stadium in Oakland but don’t count on it.  He’s going to do nothing and make the City of Oakland figure it out.  If he put the same amount of effort, time and money into Oakland that he did into Carson then this could be worked out much faster, but it is what it is.  In his defense the City of Oakland has had 2 bad mayors before Libby Schaaf and that didn’t help either but his words and his actions have never been the same.

The reality is it’s up to the City of Oakland and Mayor Schaaf to get this done.  Remember in the back of your mind, even though the Raiders are important, the A’s make more money for the city.

What is The City Of Oakland’s Present Strategy:

I think many writers and fans are not getting what needs to happen.  Every one is trying to find a new place for a Raiders stadium but in reality if EITHER the A’s or the Raiders move, then both teams stay in Oakland because the O.co is now free.  The strategy for Oakland is to move the A’s soon because they will be easier to move.  The A’s want a 34-39,000 seat stadium.  Here is a rendition of the Cisco Stadium plan that eventually was knocked down.  It would have been a 35,000 seat stadium in Fremont, CA.

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Cisco Field
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Cisco Field Business Plaza with Picnic and Dual Scoreboard

If you move the Raiders over the A’s, you need more land for the stadium and parking.  It will still cost the City if the A’s move but for a stadium with less fans, it’s cheaper.   If the A’s move, then you now have an empty arena with no team in Oracle, and you have an old stadium that can be torn down.  When the Warriors leave you now can use the Oracle area for a shopping or business complex, extra parking or whatever you want.

This keeps both teams in Oakland and you have two great stadiums.  Cal Berkeley has said in the past they are open to sharing their newly upgraded stadium for the rental revenue it would provide.  God help those in traffic but that is for another day.

Who May Be The Raiders Savior & How the A’s Can Help Them:

Below we will discuss why the the majority owner of the A’s is so important.  Don’t think for a second that major league owners aren’t sick of the A’s making money every year and doing nothing to bring in more revenue.  Lew Wolf is cheaper than a celebrity at dinner time and the other owners are sick of it and they want a new stadium in Oakland.  Of course the owners don’t have the plums to tell the Giants to get bent on the territorial rights that the A’s gave them in the first place to save them, but that’s again for another time.

Remember that since 2000, the A’s are ONLY 1 of three teams in MLB that has made money every year.  The A’s make between $35-45 million per year due to the profit sharing in MLB.  If it were up to Wolf, he’d keep cashing checks and do nothing but that isn’t popular anymore among MLB owners.

When you ask fans who owns the A’s, everyone says Lew Wolf.  Well not exactly.  Wolf owns approximately 20% of the A’s.  He IS the managing general partner though and he’s been allowed to make the business decisions and speak as the owner.  The MAJORITY owner is John Fisher the son of the Gap Founder.  (man does every owner have family money?).  He owns 80% of the A’s but he’s never really wanted to be involved in the day to day business until now.  Get this; the A’s ownership is the 5th richest ownership in MLB.  Johnson is younger, more personable and more reasonable than the volatile Wolf & he can help the Raiders.

Wolf and Johnson brought the San Jose Earthquakes back into the professional soccer world in 2008.  They built Avaya stadium in San Jose using no tax money which is a fans dream.  No one thought they could do it.  I think Johnson would have great idea’s for a new park for the A’s, shoring up the Coliseum for the Raiders.  It’s like watching a game in a theater and it officially has the largest outdoor bar in the U.S.  It has standing room only and a huge drink rail near the bar.  It also has field level club suites that are behind the benches.  It’s a beautiful place.  At the opening of Avaya, Johnson; who rarely speaks anywhere; told the media it’s now time to bring an A’s stadium in Oakland.  Here is beautiful Avaya Stadium.

https://www.youtube.com/watch?v=HiU5JQu2uGQ

Future NFL Stadium:

I don’t know why it hasn’t been thought of more but this is what construction experts see as the future NFL stadium which can be used for the City as well as the team.

https://www.youtube.com/watch?v=ERvARKwPtiU

Proposed Sites For a New Oakland Stadium: 

Howard Terminal:

raiders howard terminal
Howard Terminal Oakland A’s, Raiders Stadium

This is the sexy pick for many to bring the Raiders here but again, the city would rather try and move the A’s first because it’s easier.  I think if the A’s balked at the idea, then the Raiders could fit well here too.

Let’s be real.  Lew Wolf does NOT want to move; Johnson does though.  He wants to move and MLB wants that too.  Even though Wolf is a charitable person to the community he is very hard headed, abrasive and a close minded man in business.  It’s part of the reason the Fremont deal fell through.  The 49ers president Jed York kissed many a butt and greased many palms to get Levi’s stadium.  That’s how you deal with politicians and business people.  It’s what you have to do.

Howard Terminal was first brought up in the mid 2000’s.  The City of Oakland loved the idea; Lew Wolf hated it and he nixed it saying in anger, “I may as well move to Treasure Island.  This is a terrible spot”.  When recently asked about the area again, Wolf said he had no comment and he was in the middle of research and it was ridiculous to ask him that question right now.  What a softy.  The land is owned by the Port of Oakland so the City is in control there.

In contrast, A’s owner Johnson has told the media HE LOVES the area and they would love to build a stadium there.  It is literally right across the water from AT&T Park in San Francisco.  Just like the 49ers @ Levi’s, the Raiders would also have to get State approval but that shouldn’t be a problem.

The cons of the stadium is that it will create a traffic nightmare but let’s be real; new studies show that we have the worst traffic in the country now if you add SF and San Jose, so there isn’t a good place.  The biggest negative though is no BART trains.  BART is hugely popular at the O.co and having it is a must.  The City would have to rezone some areas and put in train tracks and a close by station.  Oakland has said it’s doable.  This is a very promising site.  Libby Schaaf stated last week she is already working on rezoning with the stadium area put in.  If Lew Wolf would say yes; or better yet John Fisher or Mark Davis; then this could start immediately and the Raider stadium at the Coliseum could begin as well.

Golden Gate Fields:

This was first proposed in 1980 when the race track was struggling and the Raiders wanted to move.  Some are bringing this site up again but it’s a very congested area for traffic and there are just too many hills to climb.  Not happening.

Laney College in Oakland: 

Another area that is being talked about for the A’s or the Raiders is the Laney College plan close to Lake Merritt.  In the early 2000’s, the A’s and the City Planning Commission held meetings on a new stadium.  The meetings had so many A’s fans going that they had to put the fans in adjacent rooms to hold them all.  The meetings were very charged.

A’s fan Larry Jackson kept bugging the city with a plan to build on Laney College.  Eventually the City Manager Robert Bobb ran with the idea.  The city endorsed it as long as the A’s would foot some of the bill.  The A’s LITERALLY never responded.  A secondary plan was also submitted at the north side of downtown Oakland by the 19th Street Bart Station.  The A’s then made Lew Wolf the lone voice talking to the City and he finally began to listen.

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Laney College Oakland Raiders Stadium Plan

Who nixed those plans was then mayor and future California Governor Jerry Brown who was a political enemy of Bobb.  Brown was angry at the A’s for talking to the City of Sacramento about moving without telling the City of Oakland which many said Brown never forgave the A’s for.  Brown said it was an act of betrayal and that the A’s were not negotiating in good faith. Brown sabotaged both plans saying they would not work and he would not support them.  Laney College by Lake Merritt is still a feasible possibility.  The City of Oakland also has said they would want a small parcel of the land still to be given to them but that is very doable.  There would also have to be money set aside extra for ample parking but that is also very doable.  Lew Wolf and Jerry Brown were very negative about this almost 20 years ago.  Both have moved on.  This is a maybe with a capital M.

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Laney College Plan for Raiders Stadium

Levi’s Stadium: 

The NFL has ALWAYS LOVED this idea; and still does.  When the 49ers and the NFL talked about it at the beginning, Al Davis bristled and said no way.  Mark Davis has said the same thing but he’s been a little more silent of late about it.  Before they started building Jed York said on local radio that they would entertain thoughts of the Raiders playing in Santa Clara.  The 49ers were open to it from the beginning but now that they are making boatloads of cash, the 49ers are more lukewarm about it.  With concert money, sporting events, wrestling, conventions and other forms of year round revenue (oh and that thing called the Super Bowl), Levi’s is a cash cow and they are printing money.  The NFL said again at the latest meetings that this is what they prefer for the Raiders.  They also have seed money that was given to them by the NFL to “morph” Levi’s so the Raiders could use it.  This is very doable.  The video below shows how the Raiders and 49ers could share the stadium and how it would morph between teams.  This is the how they do it video for the Jet’s and the Giant’s.  (I apologize for the annoying lady).

https://www.youtube.com/watch?v=mRBbvSxXvmI

O.co Stadium:

I still call it the Coliseum.  This is the ideal place for the Raiders and if one of the Oakland teams move, the other will call O.co home.  If the Raiders move to let’s say Howard Terminal, than Lew Wolf is happy and the A’s can call it home.  Both teams love the easy freeway access, close proximity to airports, and BART is at the doorstep.  It’s an amazing spot for a stadium.

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Frank Youell Field in Downtown Oakland 1962 (Laney College is There Now)

In the end the saga will be the same as the vote.  You will hear many rumors; some smart; some so out there you wish you could drug test.  But in reality; just like with the NFL vote; use common sense and use your head when following this stuff.  Most people are very emotional and biased in their thinking.  They either support teams or cities or owners but in reality these decisions have NOTHING to do with the heart.  Think like a business person and you will get more of a feel on what’s going on.  And as ALWAYS; follow the money.

“What Happens With The San Diego Chargers; a Lesson For All NFL Fans to Learn”

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A man & His Daughter @ San Diego Chargers Lot

I’m writing this for the good San Diego Charger and NFL fans that are interested. It’s truly a sad time for them and my heart hurts for any city that loses their team. No, loyalty and doing right doesn’t mean much anymore.   Let’s look at what is happening and what will happen.

What Happened At the NFL Vote?

It’s hard to listen to the insiders or the experts anymore because they are so wrong so often. I use common sense and business savvy and try to figure things out.  It’s really not as hard as people make it out to be.  Social media makes it that way sometimes.

When Raider fans already had the Raiders moving the last month I didn’t react. Why? Because if I’m an NFL owner and I have to pick between a guy that has built up a multi BILLION dollar sports empire and a 61 year old man that has never formally held a job in his life and only got the team because he inherited it, then it’s a no brainer for me. I pick Stan Kroenke over Mark Davis. In the end the NFL felt the same. Raider great Tim Brown even said he was shocked at how little the owners listened to Mark Davis and how they were so excited when Stan Kroenke spoke.   Welcome to the business world everyone.

Where Will the Chargers Play Next Year:

The NFL’s fiscal year starts April 1st. Most in the know feel that the Chargers will negotiate a deal to play in Los Angeles sooner than later. The key point for the Chargers is not getting screwed by Stan Kroenke.   They want to have equal profit sharing and they still need to pay for the relocation fee of 500 million and find a place to play.

It’s hard to think that the Chargers will stay in San Diego.   In fact it’s near impossible.  Too many bridges have been burned.   While 92 y/o Alex Spanos is still beloved, his son Dean isn’t. When he and Mark Davis thought the Carson deal would go through, Dean continued with negative remarks about the City. The San Diego Supervisors released a statement yesterday saying that if the Chargers want to negotiate in good faith that they are committed to it.   BUT if they just want to turn it into a charade because they want to move to Los Angeles then they are not interested. Not exactly words to cuddle by.

I listened to the San Francisco bay area sports talk shows Tuesday and they had 2 San Diego Sports reporters on and both said that the relationship between San Diego and the Chargers is over. They ripped Dean Spanos to shreds calling him dishonest and his negative remarks about the City of San Diego were death blows to the relationship. The new stadium in Inglewood is not going to be finished until 2019 which is a long way away so this transition; especially with the flakiness and quirkiness of Southern California fans with sports teams (Lakers have another record loss in tv viewer ratings) will make it interesting.  The NFL only wants two teams in Southern California and San Diego doesn’t want to play second fiddle to Stan Kroenke’s Rams so there is much to do.

The Real Reason Spanos is Leaving San Diego:

In 2008 the Chargers were legally able to move if they wanted to. They also could negotiate a new stadium in San Diego too. The reason why the City of San Diego has called the negotiations a charade is that many feel Spanos always wanted to move to LA. Insiders said that he felt if another team came to Southern California; (and especially if 2 teams would come); the Chargers fan base would dwindle due to new competition. Spanos probably was right but he wasn’t honest about it. Many feel he put the City and the fans through a lot of nonsense thinking he wanted to stay, when he really didn’t. He was biding his time.

Spanos also knew financially that he could not move on his own. The Chargers and the Raiders are family owned teams; which means they have no other business but the NFL so they have much less cash than other owners. He then teams up with the Raiders Mark Davis who is another man that inherited his team from his father and is in the same financial situation. They both thought the Carson project was a done deal so Dean Spanos gloated a little bit and stayed out of the limelight. He was so hated in San Diego that he refused to go out in public or on the field for some ceremonies.

Davis; who has never really held a job in his first 57 years of life; was also devastated when the Carson project fell through. Now he’s going back to Oakland with his tail between his legs and his hand out saying gimmee.

 Final Thoughts:

It doesn’t matter if you are a Charger fan, Raider fan, Bronco Fan or a Chiefs fan. The NFL has proven they don’t care about the cheerleaders, the refs, the retired players or the fans.   They are billionaires who want to make even more money and the fans are their puppets to get it. Anyone thinking that their teams are in love with them are as naive as it gets. Ask those in Baltimore, Cleveland, Oakland, San Diego and St. Louis how much their teams loved them. Nada much.   They DO love our money though.

The NFL and the owners do not care if you have a million people at a rally; they don’t care about your loyalty and they don’t care how it hurts you or your family if your team leaves. This is business, especially in the new millennium.

Does that mean we can’t enjoy our teams? Of course not. Love them, cheer for them, wear their gear and have fun. But we are not gang members. Rib each other in fun but stop showing hate and venom to other teams fans.   Do you think your teams owner cares if you are broke or sick or having problems?  Do you think your undying loyalty is cared about unless they get money out of you?  I was born but not yesterday.

Remember that we are all in this game called life and that is much more important than loyalty to a sports team. There are joys and triumphs, successes and failures, sickness and pain, and happiness and love in our lives. The important things.

Love those that love you and be good to each other. And say a little prayer for Chargers fans all over. They lost a part of their childhood today and even adults lost some innocence. In the end, it’s a painful lesson for us all.