Written by Kevin Boilard at CBSSports.com
Earlier this month, the Oakland Raiders informed the NFL that they had secured the necessary funds for a $1.9 billion stadium project in Las Vegas.
It appears as though they may have spoke too soon.
After casino magnate Sheldon Adelson pulled out of the deal on Monday,ESPN is now reporting that Goldman Sachs is reevaluating its involvement in the deal. Raiders owner Mark Davis expected one of these two entities to cover at least $650 million of the projected cost.
Adelson was the original third-party financier, but his standing in the deal wasalways shaky. Goldman Sachs emerged as a potential replacement for Adelson only recently.
Davis has pledged $500 million to the project, and the state of Nevada has already approved an additional $750 million in public funding. Although Davis remains committed to the relocation, the league will not approve it without the money in place.
When the Raiders officially filed for relocation on Jan. 19, it looked like they would almost certainly be moving to Las Vegas. According to ESPN, the entire deal is now in jeopardy.
It’s worth noting that there are plenty of concerns regarding the viability of Las Vegas as an NFL market. It is the 40th largest media market in the country (the Bay Area is No. 6), according to Janson Media, and the team may struggle to sell enough season tickets in the smaller market. There are also the obvious gambling concerns, about which league commissioner Roger Goodell has been vocal.
The Raiders can’t move to Las Vegas without an affirmative vote from 24 of the 32 league owners. Considering the current state of the deal, Davis may have trouble securing those votes.
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