Raiders Dislike City of Oakland’s Coliseum City Stadium Proposal #NFL

by

Raiders Dislike City of Oakland’s Coliseum City Stadium Proposal #NFL – Video

Raiders Dislike City of Oakland’s Coliseum City Stadium Proposal

The Oakland Raiders in the form of Owner Mark Davis and team president Marc Badain met with Oakland City Administrator Claudia Cappio and Oakland-Alameda County Coliseum Executive Director Scott McKibben to go over the City of Oakland’s proposal to build a stadium for the team at the Oakland Coliseum.

By many accounts, the meeting did not go well.

Marc Badain later explained to a fan via email that what he saw from the City of Oakland was “extremely disappointing” and because “it basically has the team paying for the entire stadium with stadium and football revenues and with little to no assets provided by the City” of Oakland. “County (of Alameda) is not involved, which is another problem in and of itself,” he added. “Also, we again were asked to sell equity to pay for the stadium. It’s possible worse than the proposal that was presented by Floyd (Kephart).”

From another source, the portion of the Raiders that the City reportedly wants as an asset sale to help pay for the stadium, is 10 percent of the team based on the current Forbes valuation of $1.45 billion; Davis is not cool with that and neither is Badain. Mark Davis also has an issue with the proposed $10 ticket surcharge The City of Oakland offered up.

The City believes it’s proposal is vastly better that of Floyd Kephart (the New City Development LLC boss who had the recently terminated exclusive negotiating agreement with the City of Oakland and the County of Alameda) but what is really the problem is something I took care of in my “Coliseum Reboot” Proposal: tallying up the total revenue the Raiders would make from the proposal. In mine it’s $2.1 billion for the Raiders over 40 years, and $600 million for the Oakland A’s over the same 40 year period.

I Removed My Ticket Surcharge Fee, Increased A Few Low Costs, And Still Came Out Fine

In my proposal, I reset the surcharge fee from $7.5 to 0, increased average hotel room revenue from $225 to $230, and increased luxury box average price from $125,000 to $134,000 – which is still below the highest current Raiders suite cost of $155,000. All of that put revenue for the bond at $49 million over total bond issuance costs – in other words, the deal works.

Again, the 1,010 room hotel complex that connects the Raiders and A’s stadiums in my proposal is the big difference maker, allowing a level of fiscal flexibility that is uncommon for this kind of project.

My deal is better for the Oakland Raiders than either the City of Oakland’s or Floyd Kephart’s.
via IFTTT
http://youtu.be/JlKXIfFLwHg

Leave a Comment