October 25, 2006
NFL: L.A. $1B stadium price tag could prompt changes
NFL officials now estimate that a new or renovated stadium in Los Angeles could cost as much as $1 billion. While the league says it still hopes to return to the L.A. area, according to the Orange County Register, the soaring costs could lead to a change in game plan:
Commissioner Roger Goodell said Tuesday the league will "stay at it" as long as necessary to ensure the eventual return of pro football to the region. But to meet what he repeatedly termed a "challenge," the league might have to consider alternative solutions."We haven't been successful to date on the approach we've taken," Goodell said at the end of the league's fall meeting, his first as commissioner. "We do believe we've made some progress, but circumstances may change where we take a different approach as we go forward."
Just what sort of "alternative solutions" are we talking about here? Almost certainly, it means that the NFL will be backing away from its promise to fund the entire stadium cost itself, and instead start hitting up local governments for aid - even if only tax breaks and free land, as has become the trend.
And Dallas Cowboys owner Jerry Jones hinted at a strategy the league could take to achieve this goal: Instead of finding an ownership group and then selecting a site, pick a city first, and then find a team and an owner. This, you'll recall, is the tactic pioneered by MLB with the Montreal Expos Extortion-Go-Round; if the NFL decides to pit L.A. and Anaheim against each other in a bidding war for who can produce the most goodies in exchange for a team, maybe they should send Bud Selig a royalty check.
I don't think anyone with the league is naive enough to believe that they'll get significant public subsidies, either in terms of land or money. I think that "alternative solutions" more likely means a relatively low-cost renovation ($300 million?) of an existing facility, most likely the Rose Bowl.
Posted by Rajiv on October 25, 2006 06:01 PM
Do the residents of LA really want a NFL team. When I lived there is was great because you always got double headers and usually the best matchups.
Posted by Michael on October 25, 2006 06:10 PM
The NFL is doing fine without a team in Los Angeles. Why go back to put a team there again?
Posted by Daniel F on October 25, 2006 06:46 PM
The n.f.l should try to bring a franchise to queens new york. The nfl hasn't been in new york cityfor 22 years. Rename the jets and giants as the new jersey giants and new jersey jets.Then get a nfl team in new york city it's about time.
Posted by dan on October 26, 2006 02:00 PM
What possible motivation would the NFL have for doing so? It already has two New York-area teams to keep the TV networks happy. And that's aside from the little problem that once the new Mets stadium is complete, Queens will no longer have a stadium fit for football.
I think this most likely puts a nail into putting a NFL team in the city of LA. Its pretty clear from the political environment voters will not stand for a tax subsidied stadium. Anaheim is a different. The city has consistently ponied up money for the Angels and the Pond. I do not think Pasadena would be willing to spend hundreds of millions of dollars renovating the Rose Bowl.
Posted by Michael on October 26, 2006 02:08 PM
Solution (also from the Selig playbook) - prop up San Antonio and see if any SoCal municipalities (preferably cities that have small man's disease) fall for it.
Posted by Greg on October 26, 2006 06:22 PM
neil,
How about flushing meadow park the park is a dump.Or you can have a stadium at belmont race track. As for the jets and giants they aren't ny . Its time for ny city/long island to get a team. Ithink in the near future it will happen in another 10 years.
What motivation does the nfl giving ny a team umm how about more money. That's a reason plus there the number 1 market. Techically the nfl doesn't have a team in the number 1 market and the number 2 market . They are the only majorprofessional league that doesn't.
Posted by dan on October 26, 2006 07:02 PM
Queens would be better off with a soccer stadium at Willets Point/Flushing Meadows Park for an expansion NYC MLS team which could be used 60 times a year rather than a NFL stadium used 10 - 12 times a year. Plus the neighborhood demogrpahics work in favor of the soccer stadium.
Posted by Bertell Ollman on October 27, 2006 07:22 AM
Soccer isn't a big sport you know how much more money the nfl attracts than soccer. But Iwould compromise and say why cant they have soccer and football in the same stadium.
Posted by dan on October 27, 2006 03:27 PM
Queens would be better off with a new stadium for the New York Jets than a expansion NY MLS franchise.
Posted by Daniel on October 27, 2006 07:17 PM
If one could find a lender willing to pony up a $2 billion loan at 2% interest over 25 years it could work. The $102 million loan costs equals the NFL owners annual distribution amount. With the top revenue team (Redskins) grossing $250 million and the salary cap @ approx. $100 million with projected revenue 80% of the top revenue team it'd be break-even. In Los Angeles that would be a gimme...everything over that would be gravy. As I stated, it could work...why doesn't somebody do it?
Posted by Benjamin Brown on November 5, 2006 05:46 PM
Have the City of Los Angeles commit $200 million over 10 years in interest enhancements to lender in exchange for 10% of the profit. Give the lender 10% of the profit. Pay the Coliseum Commission 5% of ticket sales and 5% of concession sales as rent. Spread the risk, offer upside benefits, give the principals equity positions. I mean, $hit, even a caveman on disablity with a FICO rating of 350 could put this deal together.
Posted by Benjamin Brown on November 5, 2006 06:17 PM
Have the City of Los Angeles commit $200 million over 10 years in interest enhancements to lender in exchange for 10% of the profit. Give the lender 10% of the profit. Pay the Coliseum Commission 5% of ticket sales and 5% of concession sales as rent. Spread the risk, offer upside benefits, give the principals equity positions. I mean, $hit, even a caveman on disablity with a FICO rating of 350 could put this deal together.
Posted by Benjamin Brown on November 5, 2006 06:18 PM
Queens should get their own MLS team. Have you ever been to Flushing Meadow Park? All it is is soccer fields. Forget an NFL team, nobody living in that area watches football. And enough with playing soccer in football stadiums. They are too big and the football games ruin the field.
Posted by steven on November 12, 2006 07:33 PM