Of course, whether or not St. Louis and Missouri approve $500 million or so in subsidies for a new Rams stadium, there’s still the little matter of the NFL approving which team or teams it will allow to move to Los Angeles. And despite rumors that the league was getting close to a decision, Ian Rapoport of the league-owned NFL.com now reports that the L.A. situation is in “gridlock,” and while the “hope” is that a league vote could come by May, it might not take place until 2017.
What’s the holdup? It’s always possible that this is just a matter of the owners’ cabal not being able to decide which of their brethren’s move plans they want to approve, or that they’re waiting to see what city officials in St. Louis, San Diego, and Oakland ultimately approve. (Though if so, why leak it to the media when a looming deadline is more likely to create a sense of urgency for those voting on stadium plans?)
There’s one other wild card, though, which is that, according to a report last week in Sports Business Journal, NFL owners are looking to get $500-600 million in relocation fees from any team moving to L.A. Given that the best guess is that a relocated L.A. team would see its revenues rise by a present value of maybe $500 million or so, taking on well over a billion dollars in stadium debt plus another half a billion in relocation fees seems like financial suicide.
So to the existing game of chicken between the owners of Rams, Chargers, and Raiders and the three cities that want to keep them, add in an overlay of an additional game of chicken between the L.A.-seeking owners and the NFL over how much cash they’ll have to cough up to the league to be allowed to move. I can see where this might result in gridlock, yes.