Got an extra $ 650 million laying around? If so, the Oakland Raiders might want to talk to you.
A day after billionaire casino mogul Sheldon Adelson pulled out of a project to help fund a $ 1.9 billion stadium in Las Vegas so the Raiders could move there, Goldman Sachs Group Inc. GS, -1.96% also has withdrawn, according to multiple news reports. That throws the entire deal in serious jeopardy.
Under the original plan, Clark County (Nev.) would provide $ 750 million for the 65,000-seat domed stadium in the form of hotel tax revenue, the Raiders and NFL would chip in $ 500 million, and Adelson, the founder and CEO of Las Vegas Sands Corp. LVS, -0.42% , would put up $ 650 million.
According to the San Jose Mercury News, Raiders owner Mark Davis told the NFL earlier this month that they had a commitment that Goldman would step in and provide the $ 650 million if Adelson were to pull out. But the Los Angeles Times reported Tuesday that Goldman’s involvement was dependent on Adelson being part of the project. Thus, without him, there is no deal.
The Raiders said Monday that they were still committed to moving to Las Vegas. But without a funding deal in place, NFL owners almost certainly will not approve the move at their upcoming meeting in March. That vote is now likely to be delayed until the Raiders figure out a new financing plan.
Davis is left with essentially three options: Quickly find another major backer to salvage the Las Vegas move; explore moving to San Diego, whose Chargers announced last month they would relocate to Los Angeles; or stay in the Bay Area, either in Oakland or potentially share the San Francisco 49ers’ stadium in Santa Clara.