The family of Las Vegas Sands Chair & CEO Sheldon Adelson has "withdrawn as investors" in the proposed $1.9B, 65,000-seat domed stadium "intended to bring" the Raiders to Southern Nevada, according to a front-page piece by Richard Velotta of the LAS VEGAS REVIEW-JOURNAL. Adelson in a statement yesterday said his family "will no longer be involved in any facet of the stadium discussion.” Adelson said that he was "surprised by the Raiders’ submission of a proposed lease agreement to the Las Vegas Stadium Authority" last week. He called it "shocking" to his family and said, “We were not only excluded from the proposed agreement; we weren’t even aware of its existence. It’s clear the Raiders have decided their path for moving to Las Vegas does not include the Adelson family. So, regrettably, we will no longer be involved in any facet of the stadium discussion.” The Raiders later issued their own statement, saying, "We know this project could not have advanced to this point without [the Adelsons.]" Velotta notes the Raiders previously had said that stadium construction would be "financed by Goldman Sachs -- with or without the Adelsons as partners." Clark County Commission Chair Steve Sisolak was "skeptical that Goldman Sachs can fill the financial void left by the Adelsons’ exit." The Adelsons had pledged $650M "toward the stadium’s construction," while the Raiders would commit $500M. Sisolak: "The Raiders are putting a lot of hopes in the Goldman Sachs commitments, but I don’t know the extent of their commitments, and I certainly do not share that same level of hope." Sisolak also said that he was "stunned by the turn of events." Sisolak: "Very disappointed” (LAS VEGAS REVIEW-JOURNAL, 1/31). USA TODAY's Nate Davis notes Adelson was "apparently blindsided by the franchise's negotiating tactics" (USA TODAY, 1/31). ESPN.com's Darren Rovell cited a source as saying that the Raiders' relocation application to the NFL filed on Jan. 19 "did not include Adelson" (ESPN.com, 1/31).
WHERE TO FROM HERE? In San Jose, Elliott Almond in a front-page piece reports Adelson pulling out throws a "cloud of uncertainty over" the Raiders’ plan to leave Oakland. Given Owner Mark Davis' "own limited resources, Adelson’s exit raises many questions about how the deal can be financed without him" (SAN JOSE MERCURY NEWS, 1/31). ESPN's Ramona Shelburne cited a source as saying that Goldman Sachs is also "re-evaluating its relationship with the planned deal." Adelson has a "longstanding business relationship with Goldman Sachs" (ESPN.com, 1/31). Oakland City Pro Football Group spokesperson Sam Singer said, "We've always believed the Las Vegas stadium proposal was a house of cards. This is proof that the house of cards is in danger" (BIZJOURNALS.com, 1/30). The WALL STREET JOURNAL's Chris Kirkham notes Adelson's withdrawal "increases pressure" on Davis to "come up with the money to pay for the project" in Vegas (WALL STREET JOURNAL, 1/31). In S.F., Vic Tafur writes, "There are no safe bets in Las Vegas, and the Raiders’ bid to move there might have gotten a little trickier" (S.F. CHRONICLE, 1/31).
DID ADELSON WANT TOO MUCH? In San Jose, Mark Purdy cites sources as saying that the Raiders are "still very much on track to request a vote of NFL owners in late March," and the team was not "blindsided by Adelson’s announcement." Adelson either "wanted too much in return" for his $650M -- "a share of the team, maybe? -- or the Raiders became convinced that NFL owners wanted Adelson out of the deal because of his gambling industry links." Those are the "two most likely scenarios." However, Purdy writes, "In Nevada, it isn’t wise to get on the wrong sign of Sheldon Adelson" (SAN JOSE MERCURY NEWS, 1/31). In Las Vegas, Ed Graney writes, "It’s one thing for the NFL to approve relocation for a team to a town built on gambling, but quite another to do so with the belief someone so close to that world could one day become the owner." Patriots Owner Robert Kraft at Opening Night for Super Bowl LI at Minute Maid Park said, "I don’t have anything to say about (the Adelson family pulling out)" (LAS VEGAS REVIEW-JOURNAL, 1/31). SportsCorp President Marc Ganis said of Adelson's exit, "It may be helpful with the NFL because of the longstanding prohibition to gambling connections by teams, but may hurt in Las Vegas because (Adelson) was one of the driving forces behind the public financing and marketing commitments needed" (L.A. TIMES, 1/31). PRO FOOTBALL TALK's Mike Florio wrote Adelson "drove a bargain so hard with the Raiders that he has been driven out of the process." Adelson's demands in recent months "proved unwieldy" (PROFOOTBALLTALK.com, 1/30).
DEVIL IN THE DETAILS: In Las Vegas, Adam Candee "read through" the Raiders' draft lease and "highlighted a few points." The lease "makes clear that the Raiders would be considered the primary user of the stadium," but local officials "would be on the hook for any necessary capital improvements" (LAS VEGAS SUN, 1/31).
