Because outdoor sports stadiums are often money losers and Oakland can’t afford to help pay for them, any new stadium development in the city is expected to include shops, a hotel and offices to subsidize the project. Sports economists have questioned whether the A’s and Raiders would want to work together because a second stadium would remove land that could be used for more profitable development
“The probability of Coliseum City working financially and some team committing to it would be greater if there was only one team involved,
” Stanford University Economics Professor Emeritus Roger Noll said when asked about the development in April.
In other words, it’s clearer than ever now that both owners’ business plans involve extracting as much as possible in negotiations over the Coliseum site, not just in public money, but in development rights to land, which in the suddenly hot Oakland real estate market
could be more valuable than any old sports stadium. Which explains both why Davis is insisting on the A’s eviction at the earlier possible time, and why Wolff is eager to get a lease extension signed that would force the Raiders to wait (two years, anyway) on their stadium plans: The owners aren’t just negotiating with Oakland for the best possible deal, they’re competing with each other not just for sports market share, but for dibs on a mammoth piece of prime real estate