[zumaboy]

[url=http://www.espn.com/nfl/story/_/id/18588795/oakland-raiders-ante-las-vegas-stadium-12-billion-full-operations]Oakland Raiders up ante for Las Vegas stadium -- $1.2 billion, full operations[/url]

[LasVegasPlayer]

I will break my silence to add this:

If the deal wasn't good enough for Adelson, who has ties to the community, wanted the legacy of this being his baby, invested all of the lobbying effort and was forced to marry the LVCVA when doing so, there isn't a big chance anyone else is going to jump on this as a money making opportunity. If Goldman Sachs and the Raiders had an agreement already, surely we would know it.

The Raiders won't be able to be the $1 rent payer and keep all the naming rights, concessions and parking fees with a bank run into the show. That was delusional. The Raiders would owe the NFL a $500 million note plus pay more in rent than they pay now in Oakland.

The bank will have to accept that it has a non-profit tenant and statutorily can't make any money off them. The bank would need to profit $22/million just to break even over 30 years. How much is it going to profit hosting 20-25 events a year, six of which aren't profitable?

Maybe the Raiders will chase a loan for $650 million. The team already has $300m in debt. That goes to $800m with the NFL loan. The Adelson replacement makes that $1.45b. That's 75% of what the team is worth and 30 times its current annual revenues.

Now the Raiders have to convince said bank that its revenues will explode while relocating its team to the smallest NFL market and taking on far more debt than any other team carries by 50%. If the loans average 4% interest, the payments would be about $100m a year over 30 years. That's three times the team's current net revenues. No bank will write that loan.

You also never know what Adelson will do. Most Democrats hated the stadium and now control the Legislature. Will he try to get the law repealed? Is there some sort of contract that could bring this to court? He only has to tie it up until this time next year before funding law expires.

I've been a pessimist all along but the supporters need to consider that this is a huge potential deal killer. Sisolak, who is a heavily involved proponent, has said as much.

[LasVegasPlayer]

Oakland Raiders' Las Vegas stadium deal in doubt as Goldman Sachs re-evaluates involvement

Goldman Sachs is not on board and is reevaluating the Raiders negotiations. It's probably not a coincidence that Adelson and Sands are big customers of Goldman Sachs.

I forgot to include the relocation fee in the numbers in the previous post. That's $550m. The Raiders would need to borrow more money that it's worth to pull this off and can in no way pay those notes. This feels like its over unless Davis sells equity. He can do that and stay where he is for much less.

[phoenixmike11]

Adelson backs out of Raiders deal, jeopardizing Vegas move either lots or not at all | Field of Schemes

[Willy702]

NFL teams can't borrow against team equity. Any bank deal has to be against the stadium or some other asset. If the public technically owns the stadium how could this work?

[BBMW]

In the end, it would probably be better for LV residents if this deal just died.

[robr2]

St. Louis here we come??

[LasVegasPlayer]

Originally Posted by Willy702

NFL teams can't borrow against team equity. Any bank deal has to be against the stadium or some other asset. If the public technically owns the stadium how could this work?

The law basically gifts the stadium revenues to the NFL team who in turn can use it as collateral. That's what the Adelson deal was going to be.

Goldman Sachs is officially out. The Raiders present their relocation deal in seven weeks and at this point have no developer or investment bank. They have no logical access to all the money they need. It's hard to think anything but this is dead.

[Grumpypotpie]

Unless another local magnate steps up with some financial clout, this deal seems to be dying on the vine.

[Bps401]

Started out heavy supporter, the longer this went on, my support waned, and now seeing this, Id say its almost a sure thing the Raiders wont end up in Las Vegas.

Keep in mind the repercussions. Because this failed, LV will probably never see an NFL team, and possibly never see an MLS team. Owners and leagues will look back and remember how it couldnt get done with the Raiders back in 2017.