Oakland Raiders vs Las Vegas And NFL In Stadium Lease Game Of "I Screw You, First"

Oakland Raiders vs Las Vegas And NFL In Stadium Lease Game Of "I Screw You, First" Turns out The Oakland Raiders weren't trying to pull a fast one on just Sheldon Adelson, but on the Las Vegas Stadium Authority – Clark County Stadium Authority. If you read the actual Nevada Senate legislation that gave birth to the provision for a $750 million subsidy for an NFL stadium (ostensibly) for the Oakland Raiders, it calls for the creation of a “Stadium Events Company.” Under the Nevada Legislation called SB1 and passed October 16th of 2016, there is called for a “Stadium Events Company”. The idea is that the organization is to be formed by the “developer” a letter from Jeremy Aguero of Applied Analysis, who has served as staff to the Las Vegas Stadium Authority, explained the desired relationship in this way: “The second agreement is a stadium operating agreement, or lease agreement, outlining several issues, including the day to day operations of the stadium, appropriate access for UNLV and ongoing facility maintenance. That agreement is between the LVSA and a Stadium Events Company. The Stadium Events Company could be owned by the Development Partners; it could also be a related third party. Notably, the Southern Nevada Tourism Improvement Act specifically requires that any and all stadium operating cost overruns be borne solely by the Stadium Events Company. Section 29(3) of the Act also requires the agreement include that “the term of any lease or sublease entered into by the Stadium Events Company with the National Football League team must be at least 30 years” and “provide for the accommodation of a sufficient number of dates to host at the project the regular and postseason home games of (UNLV) football.” I believe it is worth reiterating that because the LVSA will not receive any rental revenue and because the Development Partners and the Stadium Events Company are solely responsible for all development and operating cost overruns, the rental rate provided in the draft Stadium Use Agreement and highlighted in media accounts is not a meaningful consideration.” But where Jeremy Aguero is wrong is in that the Oakland Raiders themselves view the Stadium Events Company as a “person” and not a company – that idea was specifically noted in the draft lease proposal. Moreover, the Oakland Raiders draft lease proposal goes on to specifically describe the Stadium Events Company as a representative of the Stadium Authority, and views the two as interchangable. The lease proposal also assigns formaton of the Stadium Events Company to the Stadium Authority, and not the developer or the team. This is an obvious attempt by the Raiders to avoid responsibility for any stadium operating cost overruns and place that load on the Las Vegas Stadium Authority. Thus, my claim that the Stadium Authority could 'go broke” under the Raiders lease agreement was correct, and Aguero's letter was (with all due respect) wrong. The Raiders have reportedly drafted a new stadium lease agreement proposal – but it has not been presented to the Las Vegas Stadium Authority. Indeed, since the Raiders are also presenting their Las Vegas proposal to the NFL's Stadium and Finance Committee on Monday, yet the Authority's meeting is on Thursday, they're walking into the NFL meeting without an approved document. And a nasty situation of who screws whom, first. Stay tuned.

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