Everybody who’s been talking about how Rams owner Stan Kroenke was in the best position to build an L.A. football stadium because he had the most money, you can shut up now:
Rams owner Stan Kroenke is planning to borrow about $1 billion from JP Morgan Chase & Co. to help fund the proposed Inglewood stadium, which could cost nearly $3 billion.
That’s right: Kroenke is getting a big piece of his stadium construction budget by going to a bank, same way as Dean Spanos and Mark Davis would have in Carson. Not because he doesn’t have cash — he’s worth $7.5 billion, though some of that may be locked up in his cherished vintage typewriter collection or something — but because when interest rates are this low, you’d be crazy to use your own money when you can use a bank’s.
For the rest of the construction cost, Kroenke can use $200 million in NFL G-4 money, and whatever he gets from the sale of naming rights and PSL sales once he’s allowed to sell those next January (or once the San Diego Chargers agree to move in with the Rams, whichever comes first), and whatever he gets from either Spanos or Davis if they agree to move in with him, and the remainder will have to come from out of his bank account. Most of the construction bills won’t come due for a while, so he can cross that bridge when he comes to it — in the meantime, he has $1 billion to play with.
In related news, Fivethirtyeight has a good explainer on why moving to L.A. isn’t as lucrative for NFL teams as for teams in other sports. It’d be nice if they tried to figure out how an estimated $500 million increase in team value (per economist Victor Matheson) is supposed to come close to paying off a $3 billion stadium plus relocation fee cost, but I tried to do it and couldn’t make head or tail of it, and Nate Silver isn’t that much smarter than me, right? (Hi, Nate!)