In the last 36 hours, the Oakland Raiders’ move to Las Vegas hit a washboard surface on the highway. Sheldon Adelson and his family took their reported $650M out of the deal but the Raiders’ stance at that point was nonchalance because Goldman-Sachs had assured them of financing. Indeed, Goldman-Sachs would not be “strapped for cash” if they did this deal but there was one little thing that still had to be taken into consideration:
- Sheldon Adelson has a reported net worth of something near $30B and – not surprisingly – he does a lot of business in the world of financing projects here in the US and abroad. When he could not reach a deal with Mark Davis, Goldman-Sachs saw this deal in a different light and they backed out too.
I said earlier this week that this story still had plenty of moving parts and actors who had not yet delivered their lines in the saga. Well, at this point, you can call it a flat-out goat rodeo. This report from espn.com announced the unraveling of the deal.
Later reporting on espn.com suggested that the Raiders had three options at this point:
“The Raiders could find another investment bank to replace Goldman Sachs in the deal or take on another partner to replace Adelson, in advance of the late-March owners meeting where their relocation to Las Vegas was to be considered. They could also return to Oakland.”
That sounds simple and straightforward – – except that the same report also says that the mayor of San Diego has inserted himself into this situation by telling the NFL that the Raiders could move to San Diego. The NFL is supposed to vote on the Raiders’ application to move to Las Vegas in March of this year so keep your eyes and ears open here; it is going to be a wild ride.
NFL Commish, Roger Goodell held his regularly scheduled news conference the other day – the one they often call “The State of the League Address” – and there is one question that I wish someone had asked him related to this whole Raiders’ relocation situation.
Mr. Commish, the Raiders’ application to move to Las Vegas is in the hands of the league for consideration at your March meeting. That application calls for construction of a new stadium that will be ready for the start of the 2020 season and that the Raiders would remain in Oakland from 2017 thru 2019. Last year the Raiders had the lowest average home attendance and the lowest total attendance in the NFL by a significant margin. How can the NFL expect the fans in Oakland to continue to pay major league prices to a team that has a countdown clock running?
The fact is that the Raiders played to an average attendance in Oakland of 54,584 last year; the team that ranked 31st in the NFL on that metric was the San Diego Chargers who drew an average of 57,024 at home. The median average home attendance in the NFL last year was Seattle at 69,073.
Meanwhile, as we approach Sunday’s Super Bowl, it is time for another annual story. It is illegal in the United States to wager on the Super Bowl except in the State of Nevada; that prohibition extends beyond casinos where legal gambling of other types is ongoing; that box pool where you pick squares to match with the score at the end of each quarter of the game is also illegal as is the $10 wager you make with your co-worker on the outcome of the game. We all know that sort of thing happens and most folks shrug it off as “no big deal”. However, when you add that sort of wagering to the amount estimated to pass through the hands of your local bookmaker and offshore Internet sportsbooks, the total handle for the Super Bowl is in the neighborhood of $4.5B. The Nevada sportsbooks will probably handle between $100-150M on the game.
The reason almost all of the betting on the game is illegal is something known as PASPA – the Professional and Amateur Sports Protection Act of 1992. Yes, PASPA has been around for 25 years now and even if that $4.5B estimate is inflated by 25%, there is a ton of illegal gambling going on that PASPA has yet to find a way to curtail. If gambling on sports in general – and the Super Bowl in specific – is a danger to sports and thereby puts them in need of PASPA’s “protection”, then the law has been a dismal failure.
I am sure you have read/heard about the challenge that the State of New Jersey has made to PASPA. As things stand right now, several other states have joined New Jersey in that challenge and the case is under consideration by the US Supreme Court. There is no chance of an imminent ruling because the Supreme Court has said it will wait until there is a new Solicitor General of the US who has had time to file his/her brief on this matter. The Solicitor General is the person/office in the Department of Justice that represents the United States in matters before the Supreme Court. At the moment, there is no Solicitor General because the tradition is that the incumbent resigns when a new Administration takes over in Washington.
It cannot be a mystery to anyone who has read these rants for even a short while as to what I would prefer as a decision from the US Supreme Court…
Finally, as the Super Bowl game approaches and people get in the mood to watch and rank the Super bowl advertisements, let me give you a definition from The Official Dictionary of Sarcasm:
“Advertisement: A medium through which people who truly care about your welfare (and not at all about money) provide you with helpful, extremely subtle reminders that your bad breath, body odor, cell phone provider and make of car all have to go.”
But don’t get me wrong, I love sports………