Oakland Raiders Have Few Stadium Financing Suitors For Las Vegas NFL Stadium
The Oakland Raiders are talking to either US Bank and Bank of America, as this blogger reported from a trusted source, or US Bank and JP Morgan Chase, as another report suggested. Lay Raiders fans and NFL Football media types miss the point: regardless of the combination, the overall news points to one fact: there’s little demand to finance the Raiders still largely undetailed plan for an NFL Stadium in Las Vegas.
Let’s prove that by way of example: the Minnesota Vikings new stadium had not less than 22 different investment banking firms competing for the right to underwrite the bonds associated with the unique stadium that will host Super Bowl XLII in 2018. Some of them were Piper Jaffray & Co, Bank of America Merrill Lynch, Barclays PLC, BMO Capital Markets, CitiGroup Global Markets Inc, Goldman Sachs, JP Morgan, Morgan Stanley & Co. Inc., RBC Capital Markets, U.S. Bank NA and Wells Fargo Securities LLC.
And in the case of JP Morgan Chase, it reportedly loaned Stan Kronke’s development company $1 billion for its new NFL Stadium in Inglewood, California. But, as I’ve been told on a number of occasions, Mr. Kronke’s banking relationships, and his incredible personal wealth, played a giant role in that stadium financing deal.
Read familiar? That’s the same story that applies to Las Vegas Sands Founder and CEO Sheldon Adelson. The same person who backed out of the stadium development and financing planning with Oakland Raiders Owner Mark Davis.
So there are few, and really no good, stadium financing suitors for the Raiders desires in the dessert. Consider this: with so few organizations the Raiders are ‘talking’ to, that means deal terms are not in their favor: higher interest rates and other requirements that an investment bank hungry reach an agreement would not bring up. Plus, the Oakland NFL market is proven, whereas the Las Vegas market is not.
All of this points back to something we all know, already: the Raiders deal in Las Vegas is dead. For a host of reasons, there’s no rush to finance the Raiders moribund efforts in Sin City.
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