And speaking of data points for an arena arms race, now Los Angeles Clippers owner Steve Ballmer is reportedly interested in building a new arena adjacent to the Los Angeles Rams‘ new Inglewood stadium, because they want their own L.A. Live or something:
Representatives of Steve Ballmer and Stan Kroenke, two of the richest owners in professional sports, have had multiple discussions about the Clippers joining the Rams and Chargers in the sports and entertainment district Kroenke is building in Inglewood…
“It’s too soon to say it would be L.A. Live lite, but if an arena were to bring 200 nights a year, that’s a tremendous amount of foot traffic that would benefit all the ancillary properties,” said a person familiar with the discussions who asked not to be identified in order to speak frankly about the situation.
To reiterate what I just wrote about a fifth arena in the New York City metro area: Building more arenas in an already well-served arena market doesn’t really make much sense, since you’re just squabbling over how to divide up the existing pie. (An L.A. Live Lite is only likely to get customers by drawing them off from the original L.A. Live district by the Staples Center, or maybe from other entertainment options elsewhere in the L.A. area.) And Ballmer making eyes at Inglewood could still very easily be a leverage tactic toward when his Staples lease is up for renewal in 2024. But then, this is after all how capitalism is supposed to work: Investors are so desperate to grab a slice of the market that they throw around whatever money it takes to enter the game, which ends up driving down windfall profits for everyone and benefiting consumers. It seldom works that way, sure, but it still can, on occasion, when corporations are more interested in fighting over the spoils than in colluding.
If there’s one thing that watching American capitalism has taught me, it’s that the likely outcome here is for one side to buy the other — Philip Anschutz couldn’t literally buy the Clippers since he already owns the Lakers, but some kind of Anschutz-Ballmer-Kroenke sports management consortium isn’t impossible, if you could get everyone’s egos out of the way. Now there’s a thought: The only thing stopping us from entering a complete monopolistic hellscape, now that the federal government has all but declared corporate consolidation a national priority, is the inability of the super-rich to get along. Strange days, indeed.