Weak PSL sales mean trouble for the Raiders

The upcoming Raiders football season could prove to be a pivotal one for the team, the fans and, perhaps most of all, Oakland and Alameda County taxpayers.
No, the team isn't moving, but when the 2005 NFL season ends in January, so will the 10-year obligation of nearly 25,000 ticket-holders whose purchase of personal seat licenses is inextricably linked to the public financing of the deal that brought the team back to its Oakland roots in 1995. - NFL Football -
It's fourth down and long for the team and its public landlords, who this month agreed to pay $3 million more in public funds this year to come up with a plan to persuade Raiders fans to dip into their pockets again -- thousands of them paid $250 to $4,000 per seat a decade ago -- for PSLs that guarantee holders the rights to season tickets.
Before the team agreed to leave Los Angeles, where its fan base rose and fell with the team's won-loss record, it asked for nearly $200 million in stadium improvements that included Mount Davis, a 10,000-seat addition that rises above the rest of McAfee Coliseum.
The Alameda County Coliseum Authority's plan to cover the cost of construction was based on PSL revenue for the 62,000-seat Coliseum. But before the first season back in Oakland had ended, it was clear that the taxpayers were going to get stuck with a big chunk of the bill. Just 39,000 PSLs sold at first, and thousands of fans have since forfeited them.
Why would anyone want to invest in something that isn't worth anything, given that there are more than 35,000 tickets available without the hefty surcharge?
Patrick O'Connell, auditor-controller for the authority, estimated revenues at between $115 million and $120 million from Raiders games since 1995. The total includes a percentage of food concessions and parking revenue, he said. - NFL Football -
On top of that, the team's lackluster performance in its first two years was coupled with bitter, nasty off-the-field battles between team officials and local government that erupted into a court duel. The team filed a lawsuit against the city, claiming elected officials defrauded the team into signing the deal by allegedly telling them the first season of home games were sold out when they weren't. A Sacramento jury in 2003 awarded the team $34.5 million.
Taxpayers are right to be ticked off because the annual subsidies of nearly $20 million will only climb if fans abandon the PSL plan when it expires at season's end -- and there is every reason to expect they will.
It doesn't take a degree in quantum physics to calculate the savings of purchasing game-day ticket because sellouts at Raiders games have been as erratic as the team's performance. For every PSL holder who opts out at the end of the season, count another brick on the pile for John Q. Public. - NFL Football -
At a time when local governments are struggling to pay for basic services such as parks and street maintenance, health programs and youth programs, the annual handouts to the football team are hard to swallow. - NFL Football -
"Most of the PSL holders I know, and I know a lot of them, don't want to pay for the license anymore,'' said Alameda County Supervisor Gail Steele, chair of the Coliseum authority board. "We are trying to build a relationship with the Raiders, and it's getting better by working together on how to move forward with the new marketing campaign.''
Steele said her colleagues hope to hammer out a plan by the end of the summer, even against seemingly long odds. - NFL Football -
"We are very aware that we have to take care of the PSL holders,'' Steele added.
Oakland City Council President Ignacio De La Fuente, one of the architects of the deal that brought the Raiders home, said Coliseum authority officials are looking for ways to enhance the value of a PSL in a bid to resuscitate the idea.
"It's not going to be an easy task, but we are going to have to find a way to add value to the PSLs,'' De La Fuente said.
Among some of the ideas being tossed around include converting PSLs into lifetime guarantees of a game-day seat (even though at this point, the Raiders' lease to play in Oakland expires in 2010). Licenses could be enhanced with VIP parking, food discounts and giving holders perks at events held at the Arena at Oakland, he said. - NFL Football -
Another possible perk on the table: A PSL holder could be given first choice to purchase concert tickets to potentially sold-out events like the Eagles and U2 performances scheduled at the arena this fall. There is also talk of giving PSL holders a chance to enter the stadium an hour ahead of everyone, giving them some pre-game face time with players.
None of the ideas have been formally reviewed by the Coliseum board or approved by either the public agency or the football team, De La Fuente acknowledged.
But after spending a decade at each other's throats, it appears that the futures of board members and the team's fortunes seem to go hand in hand. They need each other now more than ever.
For elected officials, increasing the burden on taxpayers because of a poorly planned deal doesn't help anyone get re-elected, or even move on to a higher office.
For the Raiders, the Raider Nation will remain as hard-core and faithful as any fan base in the country, but not even the costumed behemoths who live and die with every snap are going to pay for a PSL premium when regular-priced seats are available for every game.

San Francisco Chronicle.