Full Sportscast: Gruden hire adds to already expensive Raiders existence


Ten years for about $100 million: that's the contract Jon Gruden is getting for returning as the Raiders' head coach, according to the sources of ESPN's Adam Schefter.

While Raiders owner, Mark Davis, would not confirm those numbers at a press conference introducing Gruden in Alameda, California Tuesday, he also did not deny them.

This deal makes Gruden the highest paid NFL coach and adds to an already expensive payroll.

Gruden replaces Jack Del Rio, who the Raiders fired on December 31, 2017, following a disappointing six win season.

The team still owes him money, after extending his contract by four years in February 2017.

In June 2017, the Raiders signed quarterback Derek Carr to a five-year extension worth $125 million.

He's protected by the highest paid offensive line in all the NFL, and on top of all of this, the Raiders are responsible for $1.15 billion of the $1.9 billion stadium under construction in Las Vegas.

However, it's that stadium that sports columnist Dieter Kurtenbach of the San Jose Mercury News said the Raiders are banking on to actually ease some of their financial burden.

"The Raiders have operated for a long time now about half of the profit margin of most other NFL teams; they expect that to change when they move to Las Vegas," said Kurtenbach. "They expect that a new stadium, and the corporate money that will come in, will bring the Raiders up to where everyone else is."

That is, unless, Gruden's Raiders aren't all that good.

"They really need to have a good team: a team that can put butts in the seats in Oakland, a team that can put butts in the seats in Las Vegas and sell a lot of personal seat licenses," said Kurtenbach. "The Raiders don't have that right now. They expect to get that with Jon Gruden, but if this bet goes wrong, it could be really dire for Mark Davis, the owner of the Raiders."

News 3 spoke with Mark Davis by phone about the financial feasibility of the Gruden hire.

He said it's been budgeted for, and that with a salary cap on players in the NFL, one way to get an advantage over another team, is with personnel like Gruden.

Davis called the hire "the cost of doing business" and agreed that the revenue the Las Vegas stadium is expected to generate will be crucial in maintaining and paying a competitive team.

close video ad
Unmutetoggle ad audio on off