Lott-Perry group provide $167 million offer for Coliseum complex

Updated to include poll:

BANG’s David DeBolt reports tonight that the investment group led by Ronnie Lott and Egbert Perry offered to buy the Coliseum complex for $167.3 million. The offer comes during the 90-day MOU between the City of Oakland and the investment group. They would get the Coliseum stadium, arena, the surrounding parking lots, and additional adjacent properties bought by Oakland over the past several years.

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The $167.3 million offer would also retire debt on the Coliseum. There’s still $113 million of debt left at Mount Davis after 2016, making the remainder for the land worth $43 million. Or is it? The arena’s debt after the Warriors leave is still very much in dispute. That figure could be upwards of $88 million even if the Warriors stay through 2019 as they announced earlier in the summer. Lott-Perry’s first pitch looks like a serious lowball, especially if they have to factor in the arena’s debt.

Perhaps this is why we got another update late:

Chances are that the two parties are not exactly close on the sale price, an issue Perry encountered in Phoenix. In that case Maricopa County is looking to sell Chase Field, not so much because of debt (which has been retired), but because of $187 million of deferred maintenance due for the venue. The maintenance costs and revenue generating potential combined to suppress the ballpark’s appraised value, $40-50 million in 2010. That could rise with a reappraisal, though there are no guarantees. Either way, it’s somewhat absurd to think that a large, modern MLB facility could be worth less than the average project cost of a AAA ballpark, such as the one planned for San Antonio.

The City has no reason to sign anything right away since their own property appraisal hasn’t yet been released. They’ll be guided by that document to counter Lott-Perry. Lott-Perry will be under pressure to minimize this particular cost as much as possible, since every dollar spent on land means another dollar that isn’t spent to bridge the gap on the new Raiders stadium, $300-400 million and rising with every day.

NFL relocation heavy Eric Grubman visited Oakland on Sunday and Monday to see how things were progressing. For now there’s little to report. By the end of the MOU period it will be imperative for Oakland to show something substantive that represents all parties, including the so far non-participatory football franchise. As for the A’s, they are under no pressure to make any deals right away, somewhat to the chagrin of MLB commissioner Rob Manfred. At the very least, the process is moving forward.

16 thoughts on “Lott-Perry group provide $167 million offer for Coliseum complex

  1. It took me a while to understand what Lott’s group is trying to do. They want to get JPA out of the picture so they can negotiate directly with the teams and have full control over future development of the site.

    Oakland/JPA/Alameda County owe a ton of money and here is their chance to get out from underneath it cleanly and put the onus on Lott’s group to cut a deal with the Raiders and/or the A’s.

    This would also allow Lott’s group to kick out the A’s if a deal with the Raiders is reached. Oakland won’t do it, this way Lott can do it and Oakland can wash it’s hands clean.

    I think this is why Schaaf does not want to do the deal, she does not want to kick out any of the teams. If it was up to her, she would let all 3 teams rot forever in the Coliseum site until she is out of office and kick the can to the next Mayor.

    Schaaf for selfish reasons refuses to see any team leave on her watch because of one of them being forced out……Otherwise why would she not recommend this sale to the council??

    She has failed several times already….which makes it even more strange.

    If anyone else has a theory on what she is thinking let me know.

    • | This would also allow Lott’s group to kick out the A’s if a deal with the Raiders is reached.

      Uh, no, there’s an issue with that … the A’s lease which allows the ‘two year out’ only with a funded/designed stadium plan and a commitment from the Raiders. This has neither.

      | If anyone else has a theory on what she is thinking let me know.

      “This violates the A’s lease terms in at least two places, and the amount is an insulting lowball.”

      • Don’t see how buying the site would violate the A’s lease terms. It just wouldn’t, by itself, give the purchaser the right to terminate the lease.

        Agree it’s a lowball offer though.

      • He said “…if a deal with the Raiders is reached” which means yes they absolutely CAN kick the A’s out if they secure the land and THEN they make a deal with the Raiders. Absolutely is one possible scenario.

        “If” is a pretty big word for only two letters though. I don’t think the Raiders will even sit at the table to talk unless the L.V. deal is busted so until then it’s all just speculation.

  2. ML: For purpose of your poll, are you assuming a buyer pays the listed amount and then also pays off the debt separately, or are you assuming the debt is paid out of the listed amount?

  3. Well, this is a start. (Hopefully) although, I am quite puzzled by the mayor of Oakland saying the offer wasn’t from the Lott group? If it wasn’t from them, who was it from? And, if it was from one of Lott’s partners dosent that mean it was from his group?

    ML do you have any insight on the offer, or is this all BS?

    • From Egbert Perry (moneyman behind Lott), but with a different LLC/group, and NOT with Lott and *his* LLC/group.

      Basically, Lott’s moneyman decided to go behind his back and throw in an offer for a different investor group.

      • Wow, thanks for the input. If that’s the case then it would seem that the Lott group isn’t to strong.

      • This type of scenario is exactly why it’s so difficult to come up with a plan that includes both the Raiders and the A’s.

        The JPA or a third party has to be involved to incorporate both teams into the proposal. Because this can’t and shouldn’t be done with public money, the JPA is out. Any other third party, whether it’s the Lott group, Kephart, etc. need to make money on the deal.

        It’s hard enough to get a stadium done in CA in the best of circumstances. Adding in a middle man that needs to also profit off it, plus both the Raiders and the A’s, is just too many cooks in the kitchen and crap like this is bound to come up.

  4. This maybe off the subject, but Nevada Governor Brian Sandoval is in the process of calling a Special Legislative Session to approve $750 million in public funding, to lure the Raiders to Las Vegas. This special session will occur after the first week of October. The public funding would consist of raising hotel taxes. Governor Sandoval basically has the entire Republican Assembly & Senate in line. A 2/3 majority is needed to approve the public funding. There is very little opposition to denying this funding, unless the Democrats who are in the minority, band together & vote against it.

    Sheldon Adelson who personally has a net worth over 30 Billion, runs this state. If he wants the public funding, there is a good chance he will get it. This public funding IMO, is outrageous. Our public schools consistently rank in the bottom 5% in the nation. We are in the league of Mississippi when it comes to our public school system. Washoe County / Reno-Sparks has to have a bond issue pass in November to raise new public school funding.

    It will be interesting to see what Mark Davis does if the Nevada public stadium funding actually passes. Will he actually commit or is he using this to make the City of Oakland & other entities finally do something. If Davis is serious, it will be interesting to see if a majority of NFL owners approve the move to Las Vegas.

    • The NFL Commissioner has now firmly sided with the Raiders staying in Oakland. This commissioner has evidently plenty of clout also. the Raiders move to Vegas may be a difficult scenario now (Davis needs NFL financing to build a new stadium – therefore he will have to go along with an NFL owners vote if the NFL owners decide to keep the team In Oakland). This is an odd turn of events.

  5. This offer that was rejected has nothing to do with the Lott/Peete Group. Egbert Perry stabbed them in the back. Rumors are that Perry’s exit actually strengthens the Lott/Peete partnership. Stay tuned….

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