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Raiders' Las Vegas Stadium Financing Will Be First Major Stress Test At Owners' Meeting

The Raiders' complicated stadium financing structure must "pass its first major stress test next week in Phoenix, as the Raiders seek to persuade" at least 24 of the NFL’s 32 franchise owners to "pave the road to Las Vegas in a relocation vote," according to Adam Candee of the LAS VEGAS SUN. The Raiders' "reconfigured capital stack relies heavily" on $850M in loans from Bank of America and the NFL. The BofA loan pairs with a record $750M in "public funding from Nevada to form the bulk of the necessary funds for a 65,000-seat stadium." The proposed funding setup appears to require only a $50M "cash commitment from the Raiders toward the stadium." The Raiders "plan to replace" Las Vegas Sands Chair & CEO Sheldon Adelson’s $650M with BofA’s loan commitment, and their original $500M stake always included a $200M loan from the NFL’s G-4 program. The other $250M from the Raiders "comes from the sale" of PSLs. If the Raiders come up short on the expected $250M in PSL revenue, they "must cover the shortfall" (LAS VEGAS SUN, 3/24). NFL.com's Judy Battista noted the Raiders potential move is "expected to dominate" the owners meetings." One team owner said, "There will be a vote and I think it will pass. I haven't had people lobbying me, so I don't know if (opposition) is out there, but I don't see it." Battista noted there are still "stumbling blocks that could emerge that would force a vote to be delayed until the Spring League Meeting in May." Battista: "The biggest potential one: the setting of the relocation fee for the Raiders, which two owners indicated could be a source of contention for some owners." Sources said that the owners are "resigned to the idea that no viable plan from Oakland is coming anytime soon, so they will reluctantly support the move" (NFL.com, 3/23). NFL Network's Ian Rapoport said it "certainly sounds like Mark Davis has done a lot of the right things and gave Oakland a chance." Rapoport: "There is a lot of good feeling about the way that Mark Davis, himself, handled this with the league and with the other owners" ("Up to the Minute," NFL Network, 3/23).

OAKLAND IN LIMBO: In San Jose, Tim Kawakami writes, "You can blame whoever you want for this, and there is plenty of it to go around, but for all Raiders purposes, Oakland is in the rear-view mirror, past-tense, removed from viability in this conversation." For the upcoming meeting, this is "singularly about the owners deciding whether Las Vegas is ready for a 'yes' vote." Kawakami: "It’s not about Oakland; it’s not about Oakland mayor Libby Schaaf and [Pro Football HOFer] Ronnie Lott’s development group trying to round up nine 'no' votes for Vegas." If there is a "debate over approval, it’ll be over Las Vegas issues, not because the NFL is trying to give Oakland more time." If there is a "delay over Las Vegas, it’ll be because the owners want more time to clarify the Nevada deal, not over any second thoughts about Oakland" (SAN JOSE MERCURY NEWS, 3/24). Also in San Jose, Jon Becker writes, "There’s no denying Oakland and the Bay Area market remain desirable, even if the city and local government will never offer anything close to Vegas-sized subsidies." In the NFL’s ideal world, Raiders Owner Mark Davis would sell the team to a local billionaire who would "build his own stadium in the East Bay." If the Raiders leave the "best chance Oakland has of getting another NFL team just might be … waiting a few years for things to go wrong in Vegas and bringing the Raiders back. Again" (SAN JOSE MERCURY NEWS, 3/24).

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