East Bay

No Adelson, No Goldman Sachs: Investment Bank Backs Out of Raiders Stadium Deal in Las Vegas

One day after billionaire business mogul Sheldon Adelson pulled the plug on his financial backing of the proposed Raiders stadium in Las Vegas, Goldman Sachs — the next chief financial backer — followed suit.

A source familiar with the $1.9 billion stadium deal told NBC Bay Area that the investment bank is not committed to financially supporting the stadium deal unless future proceedings seat Adelson at the table.

The latest twist in the East Bay franchise's attempt to head to Las Vegas puts the proposed exodus up in the air.

The Raiders, who officially submitted relocation papers earlier this month, have committed $500 million to the stadium's construction. Las Vegas has chipped in $750 million via hotel tax revenue. Adelson had promised $650 million to fund the Las Vegas stadium, before abruptly ditching the deal Monday.

In a statement, Adelson said he was shut out of discussions that ended up with the presentation of a stadium lease document to the Clark County Stadium Authority.

"We were not only excluded from the proposed agreement," the statement read, "we weren't even aware of its existence."

An apparently rattled Adelson continued: "It's clear the Raiders have decided their path for moving to Las Vegas does not include the Adelson family. So, regrettably, we will no longer be involved in any facet of the stadium discussion."

It is not entirely clear why Adelson was excluded from the talks, but his departure has forced the Raiders to look for a financial alternative.

Golden Sachs seemed to be the answer, until news surfaced that the investment bank and the casino mogul were a package deal.

Regardless of the current financial squabble, the Raiders will need 24 of the NFL's 32 owners to approve the relocation attempt. Owner meetings are scheduled for March.

The financial shift seems to keep a glimmer of hope alive for the Raiders to stay in Oakland. Ronnie Lott, the leader of an investment group keen on keeping the Raiders in the East Bay, tweeted Monday that he remains devoted to gathering funds for the construction of a $1.25 billion, 55,000-seat seat stadium in Oakland.

The Associated Press contributed to this report.

Contact Us