Coup d’état forming in Oakland Raiders ownership?

Photo by Patrick A. Patterson/TFDSsports.com

The insanity in the Raiders front office has been laid bare for all to see. There is the nearly year-long soap opera of Lane Kiffin's job security, but beneath the surface, the problems run much deeper. The comical near-altercation between a Raiders executive and a reporter only serves to punctuate the depth of the dysfunction.

Apparently, the fans are not the only ones who are sick of it all.  The limited partners in the Oakland Raiders are reportedly making some noise in league circles that it may be time for Al Davis to be deposed.

The idea that part of the financial stake of the Oakland Raiders is finally making a move would seem to lift the spirits of the disheartened Raider Nation. The question is whether or not a coup d’état against Davis would be successful. The answer is that it would be extremely difficult.

The Oakland Raiders ownership structure is a two-tiered partnership, meaning there are two type of partnership shares. There are the general partner shares, which are the shares that have the power. Only general partners are allowed a vote, and when last made public, Al Davis owns all of those shares. The other type of shares are limited partner shares, which allow for a share in the profits but no control whatsoever.

The upshot of this is that through conventional means, even if every partner not named Al Davis were to vote to remove him, he could just laugh and extend a one-finger salute. When Davis maneuvered his way into being the sole power of the Oakland Raiders back in 1972, he insured that he was essentially dictator for life. 

Al Davis being deposed via a shareholder revolt would be a fitting end to his tenure as the "President of the General Partner," as it was through Machiavellian machinations he was able to ensure that he would have that title for life. Back in the early '70s, there were three general partners who had equal voting rights: Wayne Valley, Ed McGah, and Al Davis. Davis had been brought into the partnership by Valley after Davis's stint as the commissioner of the AFL. By the early seventies, Valley had grown wary of Davis and had planned to have him replaced when the partnership agreement was to be redone in 1976. Davis, knowing that he had fallen out of favor with Valley, cozied up to McGah who to that point had not been active in running the team.

Whilst Valley was out of the country attending the Olympics, Davis struck. He was able to convince McGah to agree to a changed partnership agreement that insured that Davis could not be removed. It only took two out of the three partners' votes to amend the deal. Valley was livid, and he sued Davis to have that change removed. Valley lost and ultimately sold his stake in the Raiders, having been broken by Davis.

The limited partners do not have the statutory authority under the partnership agreement to amend the agreement in a way that would force Davis out as he had done to Valley. In fact, the limiteds don't have any say over Davis or the day-to-day running of the team. Basically the limited partners have two options for regime change in Oakland:

• The Legal Option:
  The limited partners could join together in a lawsuit to have Davis removed claiming incompetence and mismanagement. There are two problems with this scenario. The first being that Al Davis has spent more time in courtrooms than the owner's box and has a team of lawyers instantly at his disposal. Essentially there is little for the limited partners to stand on as most of them bought their shares well after Davis took over. This option is really a long shot at best, although it would further marginalize Davis in the minds of the Raider Nation.
   
• The NFL Option:
  This option actually has the better chance of success. As the owner of the Oakland Raiders, Al Davis is 1/32 owner of the NFL, but he is also a franchisee of the NFL. What that means is that despite the fact that Davis is dictator of the Oakland Raiders, he has to abide by the bylaws and contracts of the National Football League. In the normal context of football operations, this means that he has to obey the salary cap, rules of free agency and draft order. However, if the limited partners can convince the NFL leadership that Al Davis is no longer running the team in a manner consistent with league standards, theoretically the league can step in. If the league in concert with the limited partners were to make a move against Al Davis, the litigation would commence immediately.

If the limited partners are truly coming together to try to make a move against Al Davis, this would explain the reports that Davis is confiding in fewer people around Raider headquarters. He has long been known for his paranoia, but if there are people around the organization who are looking to make a change, it does make sense. The limited partners do have a stake in the Raiders success on and off the field in the form of capital investment, so they are likely the only ones who may have the power to affect change in the organization.