Monday night, word came out casino mogul Sheldon Adelson was backing out of the Oakland Raiders’ stadium plan in Las Vegas. That news was the first blow to Oakland’s chances of relocating to Nevada. On Tuesday, the second blow came from Goldman Sachs.
The Oakland Raiders and owner Mark Davis have been seeking the help of Adelson and investment bank Goldman Sachs to partially fund their new stadium in Las Vegas. Without the two, the chances of the Raiders being able to move to Sin City take a sharp downward spin.
ESPN’s Ramona Shelburne is reporting after Adelson decided he wouldn’t work with the Raiders’ on their new stadium, Goldman Sachs is now questioning if it should be involved as well.
The new stadium is estimated to cost $1.9 billion and Adelson was going to put forward $650 million for the project. To not get Adelson’s $650 million for the project is a big blow to Davis and the Raiders.
Here’s how the Raiders responded to Adelson:
“The Raiders deeply appreciate the efforts of the Adelson family to bring the Raiders to Las Vegas. We know this project could not have advanced to this point without them. The Raiders remain steadfast in honoring [team owner] Mark Davis’ commitment to Governor Sandoval and the State of Nevada to pursue relocation to Las Vegas.”
So that leads us to Goldman Sachs and why they would possibly withdraw their commitment. For one, Adelson and Goldman Sachs have worked together on business commitments for a while, according to ESPN.
However, on January 19th, when the Raiders’ sent their relocation application to the league office, Adelson’s name was nowhere to be found on the application. Instead, the Raiders said they would contribute the $650 million Adelson pledged, while Goldman Sachs would help them fund whatever was needed despite Adelson no longer being involved.
With this news now coming out and Adelson officially announcing he will no longer be involved, Goldman Sachs has decided it needs to evaluate its stance before moving forward. This comes nearly two weeks after the Raiders’ relocation application didn’t include Adelson as an investor and contributor.
“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.”
The NFL reportedly doesn’t want the Raiders to move to Las Vegas, so while this news is bad news for Davis and company, it’s welcome news for the league.