NFL exec: Oakland stadium plan for Raiders 'carbon copy' of failed efforts
IRVING, Texas — With city and county officials voting to approve Tuesday a term sheet for a $1.3 billion stadium deal that supporters hope will keep the Raiders in Oakland, the NFL’s point man on stadium matters raised significant concerns about the viability of the plan.
Those concerns include the involvement of a private investor group that would have an exclusive and confidential 60-day window to negotiate with the city and county on the land it would develop as part of the project, according to the term sheet released late last week.
“I think the intentions are good,” NFL executive vice president Eric Grubman told USA TODAY Sports at the league meetings Tuesday. “But I don’t think there’s been any progress that suggests a breakthrough anytime soon.”
Grubman said a friendly meeting Monday to discuss the term sheet in San Francisco lasted roughly 90 minutes with representatives from the investor group — managed by football hall of famer Ronnie Lott and the Fortress Investment Group — as well as non-elected Oakland and Alameda County officials, the NFL and the Raiders, but not team owner Mark Davis.
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There is no deal on the table for the team or league to consider right now, Grubman said, adding there are parallels to past failed efforts involving a Raiders stadium proposal and a private investor, including businessman Floyd Kephart last year.
“And I dare say if you pull up the descriptions of what the agreement was with Mr. Kephart when they entered into it and then the problems that ensued, it is a carbon copy of what they’re about to enter into today and the problems that are likely to ensue,” Grubman said.
Time isn’t on Oakland’s side either. The Raiders are eligible to apply for relocation when the regular season ends Jan. 1. Davis publicly committed to Nevada Gov. Brian Sandoval, who in October signed a bill approved by the state Legislature for $750 million in public funding towards a nearly $2 billion stadium project that would relocate the Raiders to Las Vegas, with backing from billionaire casino mogul Sheldon Adelson. There is still the Oakland Athletics’ baseball stadium issue to sort out as well.
The Alameda County of Board of Supervisors approved the plan in a 3-1 vote, while the Oakland City Council approved the plan in a 7-0-1 vote later Tuesday night. Clearance would allow administrators to negotiate a formal agreement with the Lott Group/Fortress that is pitched to include $350 million in public money by way of land and future revenue. But approval also would mean local officials have “given up the ability to have a direct conversation with the Raiders” about an alternative solution, Grubman said.
“I think it’s a mistake to add third parties and fourth parties to what really should be a two-party negotiation,” Grubman said. “In this instance, you put someone who needs to profit and you may put other motivations in there. The core task is to find something that works for the Raiders and the community, and when you put developers in or other third parties, then you’re going to have there the things that are important to them in the conversation. And that’s what happened two years ago and one year ago and I think that’s what happening now.”
The Raiders would need 24 of 32 owners to approve relocation. The team is expected to provide an update on developments in Oakland at the league meetings Wednesday, and a vote could come as soon as next month.
Grubman declined to comment on developments in Las Vegas or the stadium situation involving the San Diego Chargers, who have the right to join the Rams in Los Angeles. If the Chargers decline, the Raiders would have that option as well.
While Grubman wouldn’t call the involvement of a third party a nonstarter in getting something done in Oakland, he said: “It's an enormous roadblock in any city if you're trying to put a deal together with a sports team and you're outlining the basis on which the land be developed, controlled, taxed, improved, and the sports team is not in the conversation. That's a fairly big impediment to getting a deal done.”
Follow Tom Pelissero on Twitter @TomPelissero.
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