Goldman Sachs financing in jeopardy after Adelson exit from Raiders stadium plan

The Oakland Raiders’ deal with New York-based Goldman Sachs to finance a $1.9 billion stadium in Las Vegas is in jeopardy because the agreement was contingent on a $650 million investment from Sheldon Adelson, who withdrew from the partnership Monday.

Adelson, chairman and CEO of Las Vegas Sands Corp., said in a statement that he and his family exited the partnership because the Raiders on Thursday presented a draft lease agreement to the Las Vegas Stadium Authority without the family’s involvement or knowledge.

Because Adelson has withdrawn, the terms of the Raiders’ deal with Goldman Sachs have been breached, according to a source close to the agreement.

Adelson has a long-time relationship with Goldman Sachs. Las Vegas Sands spokesman Ron Reese said Adelson did not speak with anyone from Goldman Sachs about pulling support, nor did he urge the firm to back out of the deal.

It’s unclear how the Raiders will finance the $650 million the Adelsons withdrew; the Raiders already have committed $500 million toward construction of the 65,000-seat domed stadium. The balance of the project would be funded by $750 million in bonds repaid by Clark County hotel room tax revenue. Gov. Brian Sandoval has said no additional public money would be allocated to the project.

SISOLAK CONCERNED

Clark County Commission Chairman Steve Sisolak was a member of the Southern Nevada Tourism Infrastructure Committee, which recommended the legislation that authorized $750 million in public funding. He said he spoke with Raiders President Marc Badain on Tuesday but received no reassurance that there was a path toward getting the deal on track.

“They’re (the Raiders) looking for another potential entity to fill that void,” Sisolak said. “I personally haven’t heard of anybody who could step up.”

He said he expects the Las Vegas Stadium Authority to continue the work of reviewing a stadium lease with the Raiders. Sections of the draft, which call for the Raiders to pay $1 per year in annual rent, restrict scheduling and field markings for UNLV football games. The dome had been proposed as a home for the Rebels and the Raiders.

OTHER INFRASTRUCTURE PROJECTS

Meanwhile, state Democratic leaders put developers on notice that they would consider legislation to divert the room tax revenue dedicated to the stadium’s construction to other potential infrastructure projects. State lawmakers approved the stadium financing plan in an October special session.

“Many of us supported bringing the Raiders to Las Vegas because we were guaranteed that our community would benefit in the form of new jobs and investments in neighborhoods that need it most,” state Senate Majority Leader Aaron Ford said. “We expect that the community benefits plan announced in October will be honored in any new financing negotiations. If we do not receive adequate guarantees that the stadium project will hire local residents — including low-income residents, minority communities, people with disabilities, veterans, ex-offenders and those within the LGBTQ community — we will act legislatively to ensure those provisions are enforced.”

Ford said he would consider legislation that would create an infrastructure bank to fund Southern Nevada construction projects.

“If progress is not made towards financing the stadium project in a timely fashion, we will introduce legislation in the Senate to create the jobs that we were promised and contemplated by stadium construction,” Ford said.

He said the legislation he envisions would not affect the expansion of the Las Vegas Convention Center nor UNLV’s ability to pursue its own stadium project.

The stadium legislation directs funding raised for the NFL stadium to be used for a smaller UNLV stadium if the relocation of an NFL team to Las Vegas isn’t approved by the middle of 2018.

The Review-Journal is owned by the family of Las Vegas Sands Corp. Chairman and CEO Sheldon Adelson.

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.