Update 10:00 AM from Steven Tavares:
When the Raiders balked at paying past due rent at the Coliseum last month, we figured it had something to do with the lease extension, but we couldn’t figure out the rationale. Now, looking at the new lease terms – set to be voted on by the Coliseum JPA Friday morning – there’s little that stands out. There are clarifications on how to handle signage and advertisements inside the stadium, along with updated parking revenue definitions. The $400,000 in back rent will be paid. Then I saw this:
7.5 Additional Payments for Use of Permanent Training Facility and Training Site. If the Raiders announce a relocation or sign a lease to play football games outside of the City of Oakland or Alameda County (a) for the 2015 season prior to March 1, 2015, then, commencing on March 1, 2015, or (b) for the 2016 season prior to March 1, 2016, then, commencing on March 1 of the year following such announcement Raiders shall have the option of continuing to use the Permanent Training Facility and Training Site for up to thirty-six (36) months, up to and including February 28, 2019 as determined in Raiders’ discretion. For the first two years, Raiders shall make an additional payment to Licensor each month for continued use of the Permanent Training Facility and Training Site in an amount equal to the fair market rental value of the Permanent Training Facility and Training Site on a monthly basis, as determined by a mutually agreeable licensed commercial real estate broker based on comparable rental space. Raiders and Licensor agree that the fair market rental value shall not exceed $525,000 per year for the first two years. For the third year, Raiders shall pay Licensor an amount of One Million Fifty Thousand Dollars ($1,050,000), payable monthly in equal installments. In the event the Raiders are engaged in good faith discussions concerning an extension of the Operating License or other arrangement for the Raiders to play future Football Events in the OACC Stadium as of March 1, 2016, any obligation to make payments shall not commence while such discussions are continuing and the thirty-six (36) month period and obligation to make additional payments shall begin when Raiders agrees to play football games at a location other than OACC Stadium for the 2016 season; provided, however, that if Raiders agrees to play football at such other location, Raiders shall pay such rental payments retroactively from March 1, 2016.
Compare that to the same clause from the 2014 lease, which allowed for 24 months of training facility use and ended on February 28, 2017. Now they’ll get an extra year, giving them until early 2019 to stay. That could prove useful if the Raiders head to LA for the 2016 season, but the Carson and/or Inglewood stadium plans fall apart in the interim.
It’s a great situation for the Raiders, allowing them to stay fairly cheaply in Alameda while entertaining stadium concepts in Oakland, LA, etc. Allowing the team to be in Alameda past the 2018 effectively gives Mark Davis a three-year grace period, even if the Raiders leave Oakland starting with the 2016 season. If they stay at the Coliseum and engage in further stadium talks, rent on the facility is abated.
The grace period allows Davis to not have to look for or build a training facility in LA right away. He could continue to keep the team training in LA, fly them down for “home” games at a temporary stadium on the weekend, and fly them back up Sunday night. The stadium plan in Carson has to be modified to include a second team training facility, though chances are it wouldn’t be ready until at least spring 2018, based on what we know about the political landscape involved and construction lead times.
Let’s be clear about this: a training facility is not make-or-break item when billions of dollars of stadium speculation are the order of the day. It’s still a critical part of team operations. That’s where players will be 5 of 7 days every week during the season, and where they’ll report going back to OTAs. Now it makes more sense that the Raiders are funding improvements to the weight room and other parts of the facility, since they know they’ll be there for a few more years.
As usual, it’s Davis looking out for his team first. Maybe he’s not so different from his dad after all.