February 2, 2012

200 Million Reasons Why.... Its Time For A Road Trip

Yeah Yeah Yeah....... I have heard all of the stories about how the Raiders are Oakland and how Oakland is the Raiders. I understand. I get it. By now, I am sure you get it too. Butttttttttt....... Raider Nation may be packing their bags and making a road trip down south pretty soon.

The NFL Owners just agreed to a 200 Million dollar grant to the San Francisco Forty Niners to move the team to Santa Clara and build a stadium. Niners officials are saying that the team will be ready to relocate for the 2015 season.

Question is, will the Raiders partner with them? Well, without Al Davis in the mix, Tommy Boy has some choices to make. Here is how the deal would work.........

The stadium site will be owned by the city of Santa Clara, who will lease it to the Santa Clara Stadium Authority under what is called the "ground lease". The Santa Clara Stadium Authority will then lease the stadium to the Forty Niners Stadium, LLC, in what the term sheet calls the "stadium lease". The Forty Niners Stadium, LLC will lease the stadium to the San Francisco Forty Niners, LTD in what is referred to as the "team sublease". At their discretion, Forty Niners Stadium, LLC can also lease the stadium to the Oakland Raiders, the "2nd team sublease"

You dizzy yet? Here is a picture of how it all works....

The Ground Lease, Stadium Lease and Team Sublease all have the same term: 40 years minimum, with 5 options to renew for another 4 years - bringing the maximum lease period to 60 years. Forty Niners Stadium, LLC has the option as to whether they want to exercise a lease extension or terminate the leases. The 2nd Team Sublease, while controlled by the Forty Niners Stadium, LLC, is supposed to be subject to the same terms as the Stadium Lease, but presumably that does not include the 40 year term. Section 16.2 of the term sheet even talks about a temporary 2nd team sublease of up to 3 NFL seasons while the Oakland Raiders wait for a new stadium to be built.  

My thoughts.......Raiders Get Screwed....As Subtenants.....

Word is that as of October 2011 the 49ers were far enough along on the stadium to have reportedly already sold over a quarter of the luxury suites, which means the Raiders would be forced to be secondary tenants. This would be similar to the Jets being the tenants of the Giants, after they moved into Giants Stadium from Shea Stadium in 1984. How about it Raider Nation? Want to walk into a home game and enjoy the plush Red and Gold carpet greeting you?

I say hell no! PLAN B!!!

This ladies and gentlemen, is Plan B! Farmers Field.

 Welcome to the $2.5 Billion dollar LA Live owned by AEG (Anschutz Entertainment Group )! The City Of Angels.

Here you have 5,600,000 square feet of apartments, ballrooms, bars, Nokia theatre, restaurants, movie theaters and a 54-story Ritz Carlton hotel and condominium tower, on a 27-acre site. Oh and not to forget, the Staples Center Home of 16 time World Champion Los Angeles Lakers, Home Of The Los Angeles Clippers Of Anaheim and The Los Angeles Kings.
This is not the Los Angeles you may remember. The City has been revamped (I know because I have completed 10 of the major renovation construction projects in Downtown LA myself), the element has changed and the environment is more family friendly. Hell, who am I trying to convince? 

I ask you to think of it this way though, overall, do you want to be a stepchild or do you want to own your own home!

Plain and simple, Santa Clara does not want the Raiders. The Whiners don't want anything but a split in the costs and revenue and what do the Raiders get? The Visitors locker room.

I say get ready to pack your bags Raider Nation of the North! Pack lite, its nice weather in Southern Cali!

Chaotic View

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