Coliseum Told That It’s in Bidding War for Raiders

The Los Angeles Coliseum Commission gave its private managers the go-ahead Wednesday to negotiate a deal that would keep the Los Angeles Raiders in the Coliseum in exchange for approximately a $125-million reconstruction of the facility and a $30-million cash payment to the team.

The commission acted in closed session after being told, according to sources who attended the meeting, that they are now in a bidding war for the Raiders with Oakland, Sacramento and perhaps Irwindale and that team owner Al Davis is being offered such big cash inducements by the other bidders.

But, according to the sources, Irving Azoff, chairman of MCA Inc.’s Music Entertainment Group and a key member of the Coliseum’s private management team, assured the commission that only private money would be used to pay the Raiders and that private financing also would be used for most of the Coliseum reconstruction.

Azoff said that if the deal is closed the commission would be asked to authorize a long-term lease of the facility to the private developers, allowing them to go ahead and make all arrangements. He said this would facilitate the deal and that Davis had suggested he broach the concept to the commission.

Azoff told newsmen that although the odds may be against keeping the team in Los Angeles, he is sure, based on a long friendship with Davis, that the Raiders owner would not be stringing him along and that he is seriously negotiating with Los Angeles as well as Oakland and the other cities.

The commission, after a long closed-door session during which Los Angeles County Supervisor Pete Schabarum reportedly voiced many reservations, finally issued a brief statement:

”. . . the commission took action approving, in concept, the approach of our managers relative to the present negotiations with the Raiders regarding resolution of the commission’s ($57-million breach-of-contract) lawsuit against the Raiders, including the possibility of a long-term subleasing of the facilities to a private party or parties.”

The statement went on to say that this would be “in exchange for a long-term commitment of the Raiders to play in a substantially renovated Coliseum, which preserves the historical peristyle of the facility.”

“The commission authorized and instructed the managers to continue settlement discussions with the Raiders on this concept, with the understanding that the discussions, at this time, are conceptual only and the commission retains the power and the authority to approve any and all settlement agreements.”

Azoff said the statement was approved also by Marshall Grossman, the commission’s attorney in its 2-year-old suit against the Raiders. The suit was filed after the Raiders announced plans to move to suburban Irwindale, possibly before the first term of their lease to play in the Coliseum expired at the end of the 1991 season.

Originally, Azoff and Commission President Richard Riordan had said there would be a public discussion of the status of the negotiations with the Raiders, but, except for very brief comments in the meeting by Schabarum and Riordan, everything that was said Wednesday was in closed session.

Azoff explained outside that if the deal was going to be privately financed, he saw no need for public disclosure of its details and that the final details might never be publicly disclosed.

But the MCA executive added at one point that the Coliseum Commission might be asked to contribute something to the financing of the reconstruction.

When it was suggested that it would be hard to keep the deal secret if public money was involved, Azoff responded that he might rather do without a commission contribution if it meant terms of the deal would have to be made public.

The Raiders had no immediate comment on Wednesday’s commission action. They have steadfastly refused comment on all reports of negotiations with any of the cities bidding for the team.

Even as the Coliseum Commission acted to fortify the Los Angeles bid to keep the Raiders, there were these developments in other bidding cities:

- A spokesman for Irwindale, Xavier Hermosillo, said the San Gabriel Valley city has at last made a financing proposal to Davis for building the stadium in Irwindale. He said it would entail a $125-million loan to build the stadium, plus $30.5 million in various cash payments to the team (including $10 million already paid to the team), and a $50-million municipal commitment to buy land for the stadium, prepare the site and provide parking. Hermosillo would not divulge the names of private investors that he said had agreed to fund the deal, nor would he discuss how much Irwindale would invest in the deal. He said the city is awaiting a reply from Davis on its latest proposal.

- In Oakland, City Manager Henry Gardner said that Raider representatives met for seven hours with Oakland and Alameda County officials Tuesday in a private law office to discuss terms of a possible Raider return to the East Bay city. Gardner, who was briefed on the meeting but did not attend it, described it as “quite productive,” but said there had been “no outcome.”

Azoff has said that in meetings with Davis, the Raiders owner has been very frank that he is listening to all offers, and has set no deadlines, and will take the offer he considers best.

He added that his feeling is that a Davis decision on the future playing site of the team is “imminent.”

“It’s third down and long for us, very long,” Azoff said. “But we’re not in a punting situation yet. It’s not hopeless.”

Describing a reconstructed Coliseum in broad terms, Azoff said it might become a two-tier facility with 150 luxury boxes, and a flexible capacity that might be 60,000 to 75,000 to Raider football, 85,000 for USC football and 22,000 for concerts. There would be improved sight lines and easier access in and out, he suggested.

Of the present Coliseum, Azoff suggested, only the east-end peristyle would be left.

He said that during the reconstruction the Coliseum would be closed for football play for a year and the Raiders and USC would have to play their games that year elsewhere, perhaps in the Rose Bowl or Dodger Stadium.