Goldman Sachs joins Adelson exiting Raiders to Vegas deal
Prominent investment bank Goldman Sachs followed casino magnate Sheldon Adelson in backing out of the deal to build a Las Vegas stadium to lure the NFL's Oakland Raiders.
The setbacks, detailed by newspaper reports in California and Las Vegas, raise doubts if the NFL club will ever call the US gambling hotbed home despite filing a request to that end with NFL owners.
The proposed $1.9 billion, 65,000-seat venue was to have had $650 million in financing from 83-year-old billionaire Adelson, $750 million in revenue from a Clark County room tax and $1.15 billion from private partners, with the Raiders and NFL contributing $500 million.
But Adelson backed out Monday, unhappy at not being involved in creating a lease document presented by the Raiders to the county's stadium authority.
The Las Vegas Review-Journal, owned by the Adelson family, and Los Angeles Times reported that Goldman Sachs' involvement was dependent upon Adelson being in the deal.
But the San Jose Mercury-News and ESPN reported that Raiders relocation plan presented by owner Mark Davis to owners in January said Goldman Sachs support was not contingent upon Adelson being part of the deal.
An Adelson family representative told the Review-Journal that Adelson did not contact anyone at Goldman Sachs or suggest the bank withdraw from the agreement.
"If (Adelson) doesn't think it will pencil out for him, it won't pencil out for Goldman Sachs or anybody else that thinks they want to step up to it," Clark County commissioner Chris Giunchigliani told the San Jose Mercury News.
"I hate to say it, some of my concerns are starting to bear out. I don't think Mr. Davis cared about either community, ours or Oakland. He's using us against each other."
Raiders officials said Monday they remain committed to moving to Las Vegas. They have been unable to reach a new stadium deal in Oakland, where they are the last NFL team to share a venue with a Major League Baseball team.
NFL owners are scheduled to vote on the proposed move in March, but are unlikely to approve a move without proper funding.
The Raiders went 12-4 and ended a 14-year playoff drought this season, but lost to the Houston Texans 27-14 in the opening round of the NFL playoffs.