Why the Raiders and not the Los Angeles Chargers? - KUSI News - San Diego, CA

Why the Raiders and not the Los Angeles Chargers?

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Why the Raiders and not the Los Angeles Chargers? Why the Raiders and not the Los Angeles Chargers?

SAN Diego (KUSI) — The Raiders are going to Las Vegas. Why did that deal work out so well for Mark Davis while Dean Spanos had to settle for being a tenant in Los Angeles?

The short answer is Mark Davis was able to attract an investor because he got a huge taxpayer subsidy. Davis got nearly $700 million of taxpayer money and Bank of America is underwriting another $650 million. 

The Chargers had neither.

Related Link: NFL owners approve Oakland Raiders' move to Las Vegas

It's all about the public dollars Nevada was willing to give to the Raiders and San Diego was not willing to give to the Chargers. 

"Mark Davis' share of this whole package is only a couple hundred million by the time you put in what the NFL's contribution is gonna be, which is if we would have given Dean Spanos that same offer the Chargers would still be in San Diego," said Jim Lackritz, founder of the MBA Sports program at San Diego State.

Lackritz said this is the way the game now works in the NFL. Small markets need a big subsidy. Large markets don't. It's rich owners and not-so-rich owners.

"Rich owners, the Jerry Jones's, the Stan Kroenkes's have so much money they can do whatever they want and they call their own shots and they can pay for it," Lackritz said. 

It's sort of a new model for getting stadiums built and smaller markets in California such as San Diego cannot compete. 

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"They need a situation where it's a smaller market and the owner is not in that upper half of the wealth income stream and they need some help along the way, and if the public won't to provide it then you look at a relocation," Lackritz said.

About a quarter of the team owners are in that category, as well as Dean Spanos before he moved. And the trend across the country, Las Vegas notwithstanding, is little or no subsidy for stadiums. That's why the Chargers moved in.

"At some point if San Diego wants to get back into the game they're either gonna have to find a private investor that wants to pony up a lot of money or they're gonna have to change their attitude about public subsidies," Lackritz said.

Perhaps the NFL may need to change its attitude toward relocation.

"We worked very had and never want to see the relocation of a franchise," said NFL Commissioner, Roger Goodell.

Yet there have been three relocations in the past 14 months and Lackritz said there are even bigger issues confronting the NFL. The league has problems it failed to address early on.

"The branding and the image of the NFL is taking a hit right now. With the concussions, the off-the-field violence and other activities that are trouble with the law, that branding issue is gonna have to be kind of refurbished for them to continue the upscale revenue streams they've been able to generate for last 10 to15 years," SAID SOMEONE.

Lackritz said the new market said California doesn't want to do a public subsidy and don't be surprised if other states are quick to follow. 

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