Billionaire Sheldon Adelson Backs Out Of Las Vegas Stadium Deal, Financial Future Of Project In Doubt
UPDATE, Feb. 1, 8:30 A.M. PT.: Goldman Sachs officially pulled out of the deal, saying it won't be involved in the stadium without Sheldon Adelson, according to the Los Angeles Times.
The financial future of the Raiders' proposed Las Vegas stadium is in doubt. Casino magnate Sheldon Adelson — the richest commercial real estate executive in the country — pulled out of the deal yesterday, and Goldman Sachs is now having second thoughts.
Adelson left the deal after he realized a proposed lease agreement submitted to the Las Vegas Stadium Authority did not include the Adelson family, reports the Las Vegas Review-Journal. In a statement, Adelson said they weren’t even aware of a lease agreement. He originally said he’d commit $650M toward the construction of the $1.9B, 65,000-seat stadium.
Goldman Sachs, which previously said it would step in to fill the gaps in funding, is re-evaluating the deal and several Clark County commissioners are skeptical.
“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 Guinchigliani told the Mercury News.
The Raiders, which filed to move to Las Vegas a few weeks ago, still need approval from 24 of the 32 NFL owners to relocate to Las Vegas. If the Las Vegas Stadium Authority is unable to secure a team by mid-2018, the agency would be dissolved, according to the Las Vegas Review-Journal.
Oakland officials are still pushing forward with the city's plan to build a new stadium in Oakland with help from Ronnie Lott and Fortress Investment Group.
Staying in Oakland would mean more money from the league. The team and league could provide $600M for a new Oakland stadium compared to the $500M the NFL and team would contribute to a Las Vegas stadium, reports CBS Sports.