Tag Archives: Oakland Raiders Stadium

“The Raiders Las Vegas Deal is Possibly the Worst in U.S. Sports History; And the ONLY Way it Succeeds”

Does believing you’re the last sane man on the planet make you crazy? ‘Cause if it does, maybe I am.

Will Smith, IROBOT

mark davis

The Raiders Las Vegas deal might be the worst and most dysfunctional deal in US sports history. I’ve been telling friends for weeks, I’m shocked this is still on the table.

Last off season the late great Raiders social media icon Tim Casto messaged me. “One of ESPN’s analysts said he spoke to an unnamed insider from the Raider’s and Derek Carr broke his hand!! He’ll be out indefinitely and needs surgery!”.   It was front page news on ESPN.com.  My message back to the “Captain” was to wait until he gets two reliable sources (imagine that?) before he worries. That evening even Derek Carr was kind of freaked out by the fervor when he was the top trend on Twitter in the bay area.   Of course he was fine but it served it’s purpose. ESPN was flooded with readers on it’s website and the next day all was forgotten.   Welcome to the manipulating media of the 21st century.

I was doing a few radio station interviews talking about the Raiders, and each host had one last question. Where will the Raiders end up. My answer to all 3 to their amazement was Oakland. “The numbers don’t lie guys. All they are talking about is the cost of the stadium. Now you add the relocation fee as well as possible interest payments and other costs that always come up with this type of deal, and the price for Mark Davis goes up; way up”. While fans are being played like fiddles giving “unnamed sources” comments as facts, let’s deal with reality.

The Mainstream Media With An Epic Fail:

I worked for a fortune 500 company as an administrator at a young age. We were the biggest health organization at the time in the U.S.   I’ve done large deals and also have done some for my own small company, so I know about business.  I also have asked 3 friends who are big wigs in Silicon Valley and in the medical field financial arena what they thought about this deal. They all said let’s look at the numbers.  They all said ugh.

This is where the mainstream media and many of those following this story have failed. DO THE NUMBERS! Instead of being responsible, they leak fake stories or rumors to get a rise out of people and get traffic to their articles and sites.   It shocks me that until the last few weeks, few have literally made a spread sheet and looked at the numbers of this deal.

The Numbers Don’t Lie; This Deal Is A Joke:

The people below can do a better job than I, but here is this deal in a nutshell. The stadium will cost 1.9 billion dollars. The Raiders will NOT own it. They also will have to pay 350-500 million dollars in a relocation fee that can be spread out over time. Now thanks to the Department of Transportation’s demands that the Raiders pay for upgrades in highways and roads leading up to the new stadium, there are more added costs. The cost is estimated to be around $900 million. The Raiders will have to pay at least $450 million of that. Oh; and I’m sorry. What about the yearly interest/costs to the loan that the Raiders supposedly have shored up with Bank of America. That’s predicted to be between $40-46 million per year.

I could give you a lot of people, but for now I’ll just give a few that looked at the numbers.

Roger Noll, a Stanford University economics professor has made a few comments on the deal. “The probability that it could happen isn’t zero, but it is pretty close to zero.”

http://www.mercurynews.com/2017/03/22/raiders-las-vegas-plan-flimsy-stanford-economist-says/

Another great voice is Zennie Abraham. He broke down the numbers in depth. He has spoken with the likes of Raiders owner Mark Davis, Oakland Mayor Libby Schaaf and several of the people that are involved in the Oakland offer and the Las Vegas deal.

Zennie likes to talk (so do I) but I found a readers digest version of him showing the actual numbers of the deal. I disagree with him at times but I like Zennie and I ask that you please check out this video and his other videos on Youtube. Here is a quick video with the in depth numbers of this deal.

Below is Zennie’s comparison of the Las Vegas deal v.s. the Oakland deal.

https://www.scribd.com/document/342834001/Sheet-Compares-Oakland-and-Las-Vegas-NFL-Stadium-Plans-Raiders-NFL

Lastly here is Clark County Commission chairman Steve Sisolak who is a huge backer of the Las Vegas stadium. He has been very outspoken at the lack of disclosure by the Raiders & the Stadium Board in regards to the deal. Even he is questioning the deal saying the numbers don’t add up. Remember the Raiders saying Adelson’s money was in the bag?   Then remember them saying Goldman Sachs was a for sure? Remember the media saying these things were a done deal?  Now Davis says Bank of America’s funding is for sure but there is nothing on paper, no lease, and B of A hasn’t confirmed anything.  It reminds me of Carson when the media said the vote had been finalized for the Raiders to move.  Facebook groups all spoke about it.  I said wait; 2 reliable sources.  Ooops.

http://www.mercurynews.com/2017/03/09/raiders-mum-about-loan-while-las-vegas-officials-have-questions/

 Losers in the Las Vegas Stadium Deal:

Loser #1, Mark Davis:

Read the above numbers.   Doesn’t Mark have any friends in finance? Can’t anyone tell him that his arrogance and inability to admit a mistake may cost him big time? If he put 10% of the effort into Oakland that he has into Carson, San Antonio & Las Vegas, there would already be a stadium deal done. Is he trying to one up his dad and prove himself? The whole situation is bizarre but he is not loyal to Oakland in any way.

Loser #2; Las Vegas & Nevada:

Nevada is the best at being last. The state is last in education; near last in many health statistics, and near last in many air pollution rankings. I’ve read where they desperately need better public transportation, inner city spending, and funds spent for the infrastructure of the state including Las Vegas.

What does the legislature do? Sheldon Adelson hired 12 lobbyists to bribe; I mean encourage; politicians to vote for the $750 million stadium plan even though Nevada is a hot mess.   See why I want to outlaw lobbyists in all forms of government?

After being confronted with his huge donations to the Donald Trump campaign by Forbes magazine, Adelson said, “I don’t believe in the ultra rich using their power to dictate what happens in politics, but until they change the rules, I will”.

The City of Oakland is still paying for the Raiders move back 22 years later. St. Louis says they still owe $100-128 million to pay for the Rams stadium even though the Rams are not in the same time zone. Can you imagine the mess Nevada is going to be in?   Study after study shows tax payers paying for stadiums get one thing; screwed.

Loser #3; Raider fans:

The Raiders ticket prices are near the lower third of the league right now even after 2 years of increases. Now add to that the monstrous PSL prices that some are predicting for Las Vegas and the cost could make them the top 5 most expensive in the NFL. Top that with very high ticket prices and parking.   Now add airfare which will run let’s say $150 per person. Now add hotel rooms which will cost a good $200 dollars or more per night with many hotels looking to get at least 2 nights out of you, possibly 3. Food and drink during your stay adds up in this pretentious and overpriced land. How about a husband and wife taking the kids? Fat chance.  And you thought Disneyland and Harry Potter World were rip-offs (ok they still are).

Oakland Raider fans will especially lose. The move to Los Angeles ruined the Raiders and they’ve never been the same. Even though the Raiders had a nice core of about 30,000 loyal fans, the crowds at times were embarrassingly low with it’s lack of support. It was so bad that when they came back to Oakland, the players made fun of the LA fans. The violence, bad behavior and flakiness were hard for Oakland fans to watch.  A once proud tradition ruined.

Even Raider great Tim Brown on 95.7 The Game said LA was a bad place for an NFL team because when teams don’t do well, fans won’t come. Las Vegas will be worse. Just ask the once darling basketball program at UNLV who’s attendance is now at record lows due to some average years. With the Raiders needing 40-46% of the seats being filled by tourist/travelers, that is a pretty scary thing to rely on.  Do you think the Raiders are going to be Super Bowl contenders for 30 years or that the economy wont tank?  In a loyal place people will still come.  Not in Vegas.

(below is a 1995 article describing a Divorce Made in Heaven; the Raiders leaving LA)

http://www.nytimes.com/1995/07/09/sports/pro-football-raiders-divorce-made-in-heaven.html

Many fans worked, played, and partied with some of these Oakland greats for years. They still talk about the Santa Rosa training camps and now on Facebook you see kids and grand kids of Raider greats happily befriending kids and grand kids of longtime fans.  If you say the Raiders can play anywhere and it won’t matter to you then you don’t understand the connection and even though you are a good fan, you don’t have the same investment Oakland does emotionally.

The Raiders may be your team but for Oakland and the east bay, they are family.

What Will Happen At The Vote Next Week:

First off, how can the vote even happen? There is no financing on paper because if there were, there would be a lease agreement.   What are they going to vote on?   I mean if they do vote yes, now they are giving free reign for the Raiders to do what they want in regards to any crazy deal with his boys from Clark County. And let’s say the Vote is yes; which would be shocking; the deal still isn’t finalized. They still have to get approval from the Stadium board and finalize the financials.   I still question if there will be a vote. Look for it to drag on until May during the next one. It would be a miracle if a yes vote was finalized next week.  If it is yes, there is something going on behind the scenes that isn’t kosher because this is a bad business deal all the way around.

And Please STOP LISTENING TO MAINSTREAM MEDIA! How many more times do they need to be wrong before people stop quoting them and giving them so much credit. I know there is a lot of bad writing out there on the internet.  Everyone thinks they are a writer.  There are many that should not be writing at all.  In reality though there are some unique bloggers and writers that are getting a lot done for fans. It’s “fools” like Zennie, myself and countless others who love learning and sharing the facts with others.  Some work like dogs to give the best information. Why do you think my 3 part series on Ken Stabler went viral? It’s not because I’m some genius.  It was because I stayed up for weeks on end sometimes doing all nighters researching and writing because I felt I owed it to Ken & his family along with great college and NFL fans to do something that would inform them and be enjoyable to read. We needed the truth, not insider rumors. Does mainstream media do that anymore?  Many don’t.   What’s popular isn’t always good, what’s good isn’t always popular.

(My article on the passing of Ken Stabler)

https://jimjax4.wordpress.com/2015/07/10/the-passing-of-legendary-raider-ken-stabler-shocks-a-nation/

Conspiracy Theory; The Only Way This Vote is Approved:

Some of you say I’m too much into facts; don’t know why that’s a bad thing; but I’m not a fool and I know conspiracies exist. I get that they can be fun to think about. I think the only way this deal succeeds is if the NFL doesn’t care about the numbers and wants Mark Davis out as owner.  Why not let this deal go through and let him crash and burn. The way things are now, there is no way he can pay all this money back. And if he does default on the loans, will the NFL make him sell out to minority owners who have more money, or just sell out all together?  You have a stadium and a team that can’t pay it’s bills.  Now the NFL has all of the power over him.  Crazier things have happened.

We talked about this a couple of weeks ago; what if the stadium vote goes through and Mark does default on the loan within 3-5 years. Will Oakland again be an option? Holy Toledo!

Jims Jamz:

I’m not dumb; the NFL is going to go to Las Vegas eventually. The NFL, MLB, & NBA showed their real feelings about gambling when they sold their souls to daily fantasy sites even though the feds had to step in because the games were so crooked. Take out gambling and fantasy football and NFL ratings plummet.   For the Las Vegas deal, it doesn’t matter about the bickering, hurt feelings or emotions. It’s about the money; it’s business. And if you look at the numbers and at history you realize that this may be the worst proposed deal in the history of U.S. sports with so many losers. Let’s hope that the House of Thrills has one more miracle up it’s sleeve to stop the insanity.

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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:

http://www.thepetitionsite.com/276/842/889/induct-oakland-raider-wr-cliff-branch-into-the-nfl-hall-of-fame/?taf_id=14680187&cid=twitter

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.