OAKLAND (KCBS) – A source at Goldman Sachs told KCBS Tuesday that the Wall Street investment giant is no longer going to put up $650 million to help Raiders owner Mark Davis leave Oakland and build a new stadium in Las Vegas.
Davis has told the NFL that he has backup financing from Goldman, just in case casino mogul Sheldon Adelson backed out of his commitment to invest $650 million in the stadium deal.
Adelson announced he was backing out of the stadium deal on Monday. The source said Goldman Sachs agreed to lend the money only if Adelson was a partner.
Things began to unravel last week, when the Raiders submitted a leasing plan to the Las Vegas Stadium Authority proposing they pay $1 a year in rent.
But then Monday, casino tycoon Adelson issued a terse statement saying the plan “…was certainly shocking to the Adelson family. We were not only excluded from the proposed agreement; we weren’t even aware of its existence.”
Chris Dobbins, the President of the grassroots group Save Oakland Sports, was elated at the news.
“We’re excited that this deal is falling apart, allegedly, in Vegas,” said Dobbins. “And we just the Raiders to recommit and make it work in Oakland.”
The facility is on track to be even be even more expensive than Levi’s Stadium. The stadium’s price tag stands at $1.9 billion.
The State of Nevada promised $750 million in public funds, while the Raiders committed $500 million.
Adelson had said he was good for $650 million. The glue in the deal was Goldman Sachs.
But with Adelson out, so is Goldman Sachs.
Nevada Governor Brian Sandoval weighed in, saying “The terms of the legislation do not change and the state’s contribution will not increase as a result of this announcement. I am hopeful that the Raiders are working to secure the additional funds that would have been provided by the Adelson family.”
On Tuesday, a statement was released on behalf Ronnie Lott and Fortress Investment Group, who have been working to keep the team in Oakland.
“We have an additional $100 million due to the NFL incentive to keep the Raiders in Oakland,” the statement read. “Bottom line, if the Raiders want to stay in Oakland, we are more than ready to be a partner in making that happen.”
Davis said in a statement the team remains steadfast in its commitment to Nevada and to move to Vegas. But now he will have to do it without all that money from Goldman, meaning the team has to pony up another $650 million which it doesn’t have, or find another financial partner.