Davis Holds the Key to a New Stadium : Raiders: NFL owners are expected to approve reworked plan today, but not Hubbard’s demand.
After a day filled with hot tempers and arm-twisting, Los Angeles’ chances for a new football stadium at Hollywood Park rest in the wiles--and perhaps pockets--of Al Davis.
In response to loud complaints by angry owners unwilling to assist a former enemy, the league has slightly reworked a proposal that is expected to be approved in a vote here this morning. The new proposal would still give Los Angeles two Super Bowls and a new team in 1998, while reducing the relocation payment from that new team by about 50%.
“I think this will get done,” said Art Rooney, influential owner of the Pittsburgh Steelers. “This is the best thing for the league.”
But the league steadfastly refuses the $20-million demand of R.D. Hubbard, Hollywood Park chief executive officer.
“The league is a league, not a bank,” Commissioner Paul Tagliabue said.
After the expected approval, it will be up to Davis either to pay the $20 million himself or to persuade Hubbard to live without it.
Unless those negotiations are completed within 48 hours, Hubbard will call an emergency meeting of Hollywood Park’s board of directors to reconsider involvement in building the $200-million facility.
“Whatever we approve, the other side has to agree to it,” Tagliabue warned. “We’re confident in [Hubbard’s] good faith, but he has to find the terms acceptable.”
If today’s expected approval is followed by an agreement from Hubbard and Davis, here is what will happen:
--Under terms of the proposal, the Raiders must remain in Los Angeles for at least the next two seasons while the stadium is being built.
While Tagliabue cracked the door on the NFL’s possible return to Orange County by saying the league would not care whether the Raiders played in the Coliseum or Anaheim Stadium during those two years, league officials are unanimous in their belief that Davis will maintain his fan base by staying at the Coliseum.
Davis, of course, is still not saying.
--If construction begins later this year and remains on schedule, Davis will move the Raiders into the new stadium in time for the 1997 season. The capacity will be 67,000, increased to 82,500 for Super Bowls.
With the current television contract expiring at the end of that season, league officials will begin negotiations with networks on a new deal. In hopes of maintaining or increasing revenue, the league will promise the networks that another team will join the Raiders in Los Angeles in 1998.
The new team will probably be announced by that time. The Cleveland Browns, whose owner, Art Modell, met with Davis Tuesday, remain the leading candidate.
--The new team will move to Los Angeles in 1998 and join the NFC after possible realignment.
Although the proposal only gives NFL officials the option of moving the team to the new stadium--”There is no rule against somebody coming out to move to Anaheim,” said Robert Kraft, New England Patriot owner--league officials seem certain that team would play at Hollywood Park.
The new proposal has been reworked so that any new tenant would have to pay Davis half of his investment in a new stadium up to $20 million. In essence, the payment from the new team would help build the stadium, which would only be good for the league.
Davis is not happy with the prospects of sharing the stadium after only one year as the sole tenant, but he has agreed to that part of the proposal because he has been promised a share of Hollywood Park’s profits from the new team.
--There would be Super Bowls at the new stadium in 2001 and 2004.
Davis will receive rights to market 10,000 tickets for each Super Bowl as an incentive to purchase premium club seats.
The league is convinced that Hubbard and Davis have the money to begin construction today.
Hubbard has been approved for a $100-million loan and could easily get another $15 million from NationsBank, the league’s banker. The city of Inglewood had said it would add $50 million but may only be able to come up with $35 million. An additional $20 million would come from Davis through the sale of permanent seat licenses, which would go on sale immediately after construction begins.
It’s the remaining $30 million that has been the source of disagreement. Hubbard has said he needs at least $20 million and would be willing to get it from either the league or Davis. The final $10 million would then no longer be a problem.
Some contend that if the stadium were built, the Hollywood Park property would gain at least $50 million in value almost immediately.
“They can do without the $20 million,” said Houston Oilers owner Bud Adams, referring to Hubbard’s demand. “They don’t need that money. Heck, with those two Super Bowls, they can build a stadium and a half.”
In the unlikely event that today’s proposal does not receive the required 23 of 30 votes for passage, or if Davis and Hubbard cannot reach an agreement, the league is prepared for Davis to move to Oakland as soon as this year.
“If the Raiders want to leave, we can deal with L.A. without the Raiders,” Tagliabue said.
In that case, league officials say they could move an existing team into the area as soon as the 1996 season while working with local officials on building an NFL-developed facility for two teams.
“Actually, some people think that it would be best if Davis left and we could start from scratch,” one owner said. “To get two teams playing out there wouldn’t take as long as people think.”
If all the conditions are satisfactory, Davis would like nothing better than to see the deal become a reality.
“At this stage of my life,” he said, “I’d like to stay in one place.”
But asked if he expected the proposal to pass, Davis shrugged.
“I don’t expect anything,” he said. “I just ride with the tidal wave of events.”
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