Floyd Kephart’s proposal ripped as a very bad deal for Raiders

Officially, the proposal made by Floyd Kephart for bridging the gap between the private contributions toward the cost of a new Raiders stadium and the total price tag for the building has not been released. Unofficially, the media has obtained a copy of it — and the early reviews aren’t good.

Matthew Artz of the Bay Area News Group reports that proposal includes a suggestion that the team sell a 20-percent stake to Kephart’s company, New City Development, for $200 million. That reflects an assessment that the franchise is worth $1 billion, which seems pretty light.

Marc Ganis, a long-time league consultant on stadium matters describes the overall proposal as a very bad one.

“This is not just the worst stadium proposal I’ve seen,” Ganis said. “It’s the worst by far.”

The proposal is so bad that Ganis views it as an invitation by the local government for the Raiders to leave. And with a much more viable proposal in the L.A. area to share a stadium with the Chargers in Carson, the Raiders may be ready to accept.

Assuming that Raiders owner Mark Davis agrees with Ganis and gives the project a thumb’s down.

Then question then would be whether Carson can beat Inglewood in the race to build a new L.A.-area stadium. And if Inglewood wins, the current partners in Carson could suddenly be racing for the second seat at the table with the Rams.

34 responses to “Floyd Kephart’s proposal ripped as a very bad deal for Raiders

  1. I wish the Riverside area in Southern California were an option. It actually has one of the highest percentage of Raiders fans than most other counties, even Oakland. Riverside Raiders sounds much better than Inglewood Raiders. Then again, I don’t have a few extra billion dollars to build them a stadium so I guess I’ll just go about my business.

  2. Is this thee Mark Ganis who worked on the deal to bring the Raiders back to Oakland? Yeah, he knows bad deals alright.

    As for the deal. So Davis sells 20% of the team for 200 million, still maintains control of the team, and in return gets to own his own silver and black stadium and will never have to deal with Oakland, Alameda County, the JPA, relocation fees, eating 40 million on the new Alameda facility, or having to deal with sharing with any other team? Ummmm sounds real bad for the Raiders.

  3. Then question then would be whether Carson can beat Inglewood in the race to build a new L.A.-area stadium. And if Inglewood wins, the current partners in Carson could suddenly be racing for the second seat at the table with the Rams.
    ————————-
    I think this is where we are presently at, with the Chargers ahead of the Raiders. If I had to put down a bet today, I’d say it’s going to be Rams and Chargers. But I’d prefer Rams and Raiders.

    I still think the Chargers are more OC than LA.

  4. yesyesyall87 says:
    Jun 27, 2015 1:16 PM

    Great… The Raiders are going the LA to become Hollywood again?
    ————————
    Absolutely!

    In fact, everyone knows that despite the fact that the LA-metro area has approximately 13 Million people, the 100,000 or so who live in Hollywood define all of us.

    #LADiversity

  5. Nobody wants their favorite team to leave… but can someone please explain why taxpayers should pay anything towards NFL stadiums? Rich people need help to make more money?

  6. I agree with raiderssf you get everything you want and do nothing. I believe the franchise is one of the lowest revenue makers in th . N. F. L right now so 20% for. 200 million is like a Billion for the team. …

  7. Isn’t there still a shovel ready proposal hanging out there in the City of Industry? Hard to imagine that Mr. Davis hasn’t been in touch with Ed Roskie about the prospects of building that stadium with private money.

  8. Simply put, Oakland is not a first rate city. If they are not going to fight for their Raiders, plenty of others will.

    The decision to leave is not a tough one.

  9. The fix is to have any team who willing on their own or willing to be strong-armed to move to Los Angeles also sign a contract that if they fail in LA they are automatically placed first on the list to move to London.

  10. is it possible that la-la land goes from no nfl teams to 3 in a couple years? hasn’t anybody been watching san andreas

  11. Nobody wants their favorite team to leave… but can someone please explain why taxpayers should pay anything towards NFL stadiums? Rich people need help to make more money?
    ——————————
    It’s really not that hard to figure out. It’s basic economics – supply and demand. The supply of NFL teams is low, and the demand is high. That means either the price goes up or the inducements that a city is willing to give to entice a team to move increase. One of those inducements is a publicly-funded stadium.

  12. No way a team with the history of the Raiders is worth pennies on the dollar. What an insulting deal.

  13. I’ve been a Raiders fan for over 45 years. I’ve seen their glory days. I remember when they we’re feared. When they moved to LA. the first time, it just wasn’t the same. They belong in Oakland. If they leave they won’t return this time. San Antonio Raiders, Irwindale Raiders, I’ll have to find a new team to support. Maybe the Warriors might move to Idaho, or the A ‘ s to Rhode Island.

  14. Let’s get some facts straight. Kephart is NOT negotiating for the City/County. As an independent 3rd party, he was tasked with coming up with a workable proposal acceptable to the Raiders and City/County.

    It remains to be seen if this proposal is truly workable or not. If not, then the City/County is on record stating they have alternatives in mind. To characterize the proposal as if this is the City/County telling the Raiders to just leave is ridiculous.

    Also, let’s say the Raiders can’t get anything done in Oakland with Kephart or otherwise right now . The team is still a solid third in the pecking order to get to L.A. Numerous reports have identified the NFL does not want three teams in the SoCal market. The only way the Raiders get to L.A. is the Carson project, and that one just isn’t going to happen. The Inglewood project is much farther ahead. The Chargers will share the Inglewood stadium with the Rams.

    In the end the Raiders can still make out by getting a new stadium in Oakland, believe it or not, related to the relocation fees of the Rams and Chargers.

  15. This guy isn’t making a Mr. Wonderful debt or licensing deal. He has the cash and wants straight equity.

    Marc Davis is cash poor in relation to 30 other NFL owners (But John Mara has the Steve Tisch checkbook to lean on).

    Good or bad, this guy has the money and he isn’t looking for some 8% interest rate in return. Although, should Davis miss a coupon payment, this guy could swoop in and get the entire team.

    When the Raiders don’t get a chair in LA, this bad option becomes the best option.

  16. Charger fan needs to worry about their sorry franchise and how it treats their players.

    And no matter what happens, the lowly bolts are always going to be chasing the RAIDERS.

  17. This deal sounds very fair to me. The Raiders could not possibly be worse off with another party in the ownership group. May lend some much-needed rationality in decisions.

    But maybe Carol & Son-of-Al are afraid/paranoid that Klephart will take controlling ownership away from them in a coup like Al Davis did to Wayne Valley (original Raiders owner) in the 70s.

  18. There are effectively 0% Ram fans in the Los Angeles-Orange County market. Kroenke will have to reintroduce and build the brand. This is very possible with his own stadium in Inglewood (no outside influence).

    If the Chargers jump ship and come to LA (no support in LA, soft support in OC), they face the wrath of the Raider fans who are still very visable. The Chargers will not be able to win over the Raider fans (as they are in the same division).

    An opening in San Diego without a stadium deal in Oakland will be a mighty enticing invite to the Raiders. SD fans will be upset with the Chargers and will welcome the Raiders. So the Carson deal really falls on the Chargers to get this done asap. If the Chargers blow off the Carson plan and jump aboard the Inglewood stadium (and I don’t see Koenke needing/willing to share – which is the smart play if he truly wants to own a team), the Raiders will make the jump to San Diego.

    If the Chargers remain in San Diego, the Raiders could jump on the City of Industry site (which actually looks good), or they could look at Fremont as an alternative to this terrible proposal by Kephart, City/County, et al.

  19. Been saying it for months: Raiders will be in San Antonio by 2017. Oakland officials seem to not care. Rams have the inside track on LA. San Antonio has by far the most attractive offer out there.

  20. dejadoh says:
    Jun 28, 2015 11:24 AM

    There are effectively 0% Ram fans in the Los Angeles-Orange County market. Kroenke will have to reintroduce and build the brand.
    ————————-
    You obviously don’t live out here. Rams jerseys are relatively common during football season. There are plenty of Rams fans here.

    Why did the Rams leave? Because people here think Georgia whats-her-name should have paid for her own stadium. And based on the fact that St. Louis still owes a fortune on that stadium, I’d say we were right.

  21. Los Angeles Raiders 2016 !!!!!
    “Just move Baby” !!!!!

    Would be cool if they bring them out to the Inland Empire area. It’s growing out here in the IE, I live in Rancho Cucamonga and we have New malls and plenty of space out here close to Rancho to build a football stadium and a few theme parks.
    I grew up in LA county and I think it is way to over populated out there. Everything is cheaper out this way plus newer construction so that is always a plus. Well at least we don’t have to worry about water main breaks out here for another 50+ years!!! LoL
    I’m happy out here but either way I would still be happy with my Raiders out here in Carson.

    4 season tickets please !!! We are ready for some Raider football.

  22. ivanpavlov0000 says:
    Jun 29, 2015 12:06 AM

    dejadoh says:
    Jun 28, 2015 11:24 AM
    There are effectively 0% Ram fans in the Los Angeles-Orange County market. Kroenke will have to reintroduce and build the brand.
    ————————-
    You obviously don’t live out here. Rams jerseys are relatively common during football season. There are plenty of Rams fans here.

    ——————-

    Most people who want the Rams back in LA don’t even live anywhere near California.
    Rams are barely existent in the greater LA area at all. I see more Chargers fans than Rams fans, and that’s saying something.
    LA backs the Raiders over any other team. {{-_-}}

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