|
I don't think either location is going to work because of the finances. The NFL and the developer (Roski or AEG) want to take all of the increase in the value that the team will realize upon moving.
Let's say the Chargers are worth $800m in SD. If they move to LA their value goes up to $1.5b. The NFL wants a $500m relocation fee and the developer wants to buy in at a discount of $200m. At the end of the day Spanos owns a $800m portion of the Chargers.
Spanos is saying I will keep my $800m equity level in the Chargers. Sooner or later the city will combine a convention center with a new football stadium that the taxpayers will pay for and his equity rises to $1.1b and complete control of the team. SD is a corrupt city.
Oakland is a target. They would be smart to lease the Niners new stadium. Oakland can't afford the new stadiums to keep the Warriors from moving to SF, The A's to SJ (MLB should approve that move tomorrow for the best of baseball) and the Raiders to LA or Santa Clara.
The Rams are playing hardball with St Louie. They are a hockey baseball town that has to improve their stadium to keep the Rams. The Rams just won a big court case that keeps that improvement in tact.
LA is a great bargaining chip to make other cities pay up. I hope the Rams and the Chargers move to the City of Industry. I don't think it will happen until the NFL drops the relo fee.
|