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COME HEAR UNCLE AL'S BAND: TAX MAN MAY BE IN NFL PSL BATTLE
Published August 10, 1995
Among the details of the "last-minute changes" in the deal returning the Raiders to Oakland are mechanisms which could cost Oakland area taxpayers if the NFL takes action to absorb Raiders PSL revenue, according to the OAKLAND TRIBUNE. The Raiders want to use PSL revenue to cover Oakland's stadium improvement bonds. The NFL sees the PSLs as part of the team's ticket revenue which is subject to league rules requiring teams to share 34% of their ticket receipts with visiting teams. Under the revised agreement, the Coliseum will be required to side with the Raiders in any court action between the Raiders and the NFL on the issue. Of the $63.9M the team plans to raise through the sale of PSLs, the Raiders will be responsible for paying 34% on the first $49.9M of PSL revenue, or $16.9M. The Coliseum will be responsible for paying 34% on the remaining $14M, or $4.76M. The Coliseum will also be liable for the first $600,000 in legal fees to defend any lawsuit. If the Coliseum then has "inadequate revenues" from PSLs to pay off the bonds, it will have to "tap city and county tax offers" (Stacey Wells & David Li, OAKLAND TRIBUNE, 8/10). Another aspect of the last-minute deal assures Davis $3.8M "from this month's weak-selling pre-season games and increases the risk for taxpayers," according to Barry Witt in the SAN JOSE MERCURY NEWS. Witt notes ticket sales, as of Tuesday, left a difference of $1.8M between what has been guaranteed and what has been sold. Any shortfall will be covered by bonds, and ultimately, "will be absorbed by taxpayers." Coliseum Board President George Vukasin said the deal is "a little risky," but added, "the most important thing was we needed to get the tenant signed, sealed and delivered on Monday, and that was accomplished" (SAN JOSE MERCURY NEWS, 8/10). A GOOD PLACE FOR A TRIBUTE TO GARCIA? The Coliseum hired L.A.-based Tutor-Saliba Corp. as general contractor, Cordell Corp. as project manager, and Kansas City, MO-based HNTB Architects Engineers Planners as designers in the Coliseum renovation efforts (OAKLAND TRIBUNE, 8/10).