Forget Las Vegas, Oakland Raiders Still Owe Coliseum JPA $218 Million In Unpaid Loans From 1996
Everyone’s focused on the Oakland Raiders in Las Vegas, and as if the NFL team’s not even playing in Oakland. But not only are the Raiders playing in Oakland in 2018 and in 2019, and through 2020, the Silver and Black are also still on the hook for repaying the $54 million loan received from the Oakland Alameda County Coliseum Joint Powers Authority in 1996. Yep, with all of the discussing and fussing about the Raiders needing a new stadium and relocating, the Coliseum JPA auditors have quietly though visibily counted up what the Raiders owe, with interest, on an annual basis.
The 2016 Oakland Alameda County Coliseum Joint Powers Authority Financial Report has this ominous paragraph on page 6:
Basis for Adverse Opinions on Governmental Activities and the Special Revenue Fund
As discussed in Note 4 to the basic financial statements, the Authority has loans receivable from the Oakland Raiders in the amount of $155,562,629 as of June 30, 2016. These loans have increased in the amount of $6,890,325 in fiscal year 2016 and have increased a total of $92,366,439 since the inception of these loans in fiscal year 1996. The Authority has not adopted a methodology for reviewing the collectability of Raiders loans receivable reported in the governmental activities and the major special revenue fund and, accordingly, has not considered the need to provide an allowance for uncollectible amounts. The Authority has not evaluated the recoverability of these loans through the maturity date in fiscal year 2036. Accounting principles generally accepted in the United States of America require that an adequate allowance be provided for uncollectible receivables, which would decrease the assets, net position/fund balance, and the change in net position/fund balance in governmental activities and the major special revenue fund. The amount by which this departure would affect the assets, net position/fund balance, and change in net position/fund balance of the governmental activities and the major special revenue fund has not been determined.
In other words, at that point, the Raiders owed $155,562,629 as of June 30, 2016, the most readily available date posted on the Coliseum JPA website. What this is, is a loan that originally started as $63,196,190 in 1996, and has steadily increased by what the auditor reports was $6,890,325 annually, and is now at $155,562,629 as of 2016. I have found the loan will grow to be valued at $218,758,819 by the loan’s end date of 2036.
The simple fact is, the Coliseum JPA’s financial auditor sees this as a true loan and has started the 2015 and 2015 financial reports with a veriation of that paragraph you just read above. Regardless of the fact that the Coliseum JPA has “ not considered the need to provide an allowance for uncollectible amounts”, the fact is, the monies are a loan to the Raiders that has not been repaid. It’s also a fact that the Coliseum JPA has not taken up this issue.
This clearly is something that should be brough to the attention of the City of Oakland and the County of Alameda, and to determine how best to resolve the matter. But the clear facts are these: the loan to the Raiders is mentioned as just that, it continues to acrue interest on an annual basis, and it stops doing so in the year 2036. It’s also clear that the Raiders were expected to pay down the loan via the action of paying the JPA it’s share of revenues. What’s that total, and what is the outstanding amount absent that estimate of back payments?
A big problem. One worth $218 million.
Stay tuned.
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