LA Takes a big step towards getting the NFL back

[CosmicBills]

As reported on the Wall many times over the past few months, the talk of the NFL coming back to LA has heated up. While this has happened in years past, today AEG took a huge step forwards by announcing the largest naming rights in sports. With Farmer's insurance, AEG unveiled the name of the new downtown stadium: Farmer's Field.

 

On the drive home I listened to AEG president and CEO Tim Leiweke discuss the ramifications of the deal with the local sports radio. What was interesting to point out was that he referenced that Jerry Jones and Kraft have been at the forefront of pushing the league to have a team -- and based on the Jets and Giants, they believe LA should have TWO teams. Further more, Leiweke expects these moves to happen in the immediate future. Possibly as early as 2013. It was also interesting to note that Leiweke is not expecting to OWN the team that comes here. Instead, he is expecting a minority ownership agreement because he said (paraphrasing) "It's illogical to assume that we could convince someone to sell the team to us before moving here when the value of the team would double with the move".

 

According to Leiweke, the design is to build a stadium that connects to the Staples Center and would boost downtown LA's economy by providing a home for Final Fours, conventions and would lead to as many as 25,000 new jobs. The fact that they have gotten 1 BILLION in private funding for this means that the local taxpayers will shoulder no risk. Which means now that the city itself is finally fully on board -- which has not been the case in the past. Based on just who was at the press conference (from city and state officials to the local sports celebrity) it seems that this movement is gaining more steam than ever.

 

Leiweke was quick to point out that while the NFL wants this to happen, and frankly expects it to happen, nothing will happen until the CBA is resolved. That's the first thing to handle. But while the NFL is dealing with that, AEG is shopping for an architect and expects to have the plans in place within 6 to 8 months including the Environmental Impact report -- which, coupled with the naming rights and financing, would be all the hurdles they'd need to overcome to lure two teams here. The focus seems to be on one team but Jones and Kraft are apparently hoping for two. Which, makes sense.

 

 

He refused to mention specific teams, but the Vikings, Jags and Chargers were the most talked about during the aftermath of the press conference.

[boyst]

We'll move to Toronto before we move to Los Angeles, and for that I am not too worried, other then having to get in to Canada. I don't have a red-haired mullet, don't really like Canadian beers, and can enunciate all of the letters in the alphabet.

[Kelly the Dog]

I still have yet to hear a good explanation as to how these two (or three) entities are going to make enough money to make this feasible.

 

And unless a lot of people know something and aren't talking about it (which is quite possible), the environmental study is still a huge hurdle.

 

I don't see any way in hell a team is going to be worth twice what it is worth now by moving to LA unless they own the stadium and get all the money from it. If they are going to rent it from AEG (which would have to be an outrageous price), they wouldn't be getting all of the parking and concessions and luxury boxes which are the single things that make stadium owners in big cities like Kraft, Jones and Snyder the big bucks. I've read numerous articles on the idea and none of them explained that. I don't even see how AEG is going to make a ton of money on a 2 billion dollar project when they don't own a team, and have to split the sizable amount of money an NFL team makes with the owners of the team(s). And I've yet to see Anshutz say he's for it.

 

IMO, it's far from a done deal. I'm just glad there isn't a lot of talk about the Bills moving there. I also wasn't at all impressed with the LA retreads they trotted out for it, outside of Magic.

[Arkady Renko]

I hate Kraft and Jones.

[CosmicBills]

I still have yet to hear a good explanation as to how these two (or three) entities are going to make enough money to make this feasible.

 

And unless a lot of people know something and aren't talking about it (which is quite possible), the environmental study is still a huge hurdle.

 

I don't see any way in hell a team is going to be worth twice what it is worth now by moving to LA unless they own the stadium and get all the money from it. If they are going to rent it from AEG (which would have to be an outrageous price), they wouldn't be getting all of the parking and concessions and luxury boxes which are the single things that make stadium owners in big cities like Kraft, Jones and Snyder the big bucks. I've read numerous articles on the idea and none of them explained that. I don't even see how AEG is going to make a ton of money on a 2 billion dollar project when they don't own a team, and have to split the sizable amount of money an NFL team makes with the owners of the team(s). And I've yet to see Anshutz say he's for it.

 

IMO, it's far from a done deal. I'm just glad there isn't a lot of talk about the Bills moving there. I also wasn't at all impressed with the LA retreads they trotted out for it, outside of Magic.

All excellent points.

 

From my understanding (based mainly on the chat with Leiweke on 710 tonight), AEG is planning on making most of their money from other events outside of the NFL. Like: The Final Four, a possible annual BCS Game, Conventions -- of which they discussed many, and the occasional Super Bowl. They made clear they would have at least a minority ownership stake in the NFL club as well, but they seemed to be playing coy about outright buying one. Which I think is because there are no teams for sale so long as Ralph and Davis are alive. But it seems that AEG would be content just convincing a current owner to move in exchange for a small stake in the team. Which, I think an owner like Wayne Weaver or Wilf or (definitely) Spanos would be willing to do considering the increased value to their franchises a move to LA would bring. The one thing Leiweke kept reiterating tonight though was that they weren't going to steal a team in the middle of the night. That he in fact has ongoing conversations with "several" teams about moving the team to LA. Which I take to mean as teams not in Buffalo since Ralph wouldn't be having such talks.

 

What concerned me was the talk of moving 2 teams rather than just one. I think if they do that, San Diego is for sure one of them though ...

Edited February 2, 2011 by tgreg99

[dayman]

I've said it all along...it will be and should be the Chargers.

[Johnny Hammersticks]

Of the three potential candidates...who would be the Lakers, and who would be the Clippers of Los Angeles?

[Damian]

The Clippers...

Oh, how the mighty Braves have fallen...

[Buffalo Barbarian]

LA, they don't deserve a team since they let two go and showed no interest when "their" team was awarded to Houston.

[seq004]

As reported on the Wall many times over the past few months, the talk of the NFL coming back to LA has heated up. While this has happened in years past, today AEG took a huge step forwards by announcing the largest naming rights in sports. With Farmer's insurance, AEG unveiled the name of the new downtown stadium: Farmer's Field.

 

On the drive home I listened to AEG president and CEO Tim Leiweke discuss the ramifications of the deal with the local sports radio. What was interesting to point out was that he referenced that Jerry Jones and Kraft have been at the forefront of pushing the league to have a team -- and based on the Jets and Giants, they believe LA should have TWO teams. Further more, Leiweke expects these moves to happen in the immediate future. Possibly as early as 2013. It was also interesting to note that Leiweke is not expecting to OWN the team that comes here. Instead, he is expecting a minority ownership agreement because he said (paraphrasing) "It's illogical to assume that we could convince someone to sell the team to us before moving here when the value of the team would double with the move".

 

According to Leiweke, the design is to build a stadium that connects to the Staples Center and would boost downtown LA's economy by providing a home for Final Fours, conventions and would lead to as many as 25,000 new jobs. The fact that they have gotten 1 BILLION in private funding for this means that the local taxpayers will shoulder no risk. Which means now that the city itself is finally fully on board -- which has not been the case in the past. Based on just who was at the press conference (from city and state officials to the local sports celebrity) it seems that this movement is gaining more steam than ever.

 

Leiweke was quick to point out that while the NFL wants this to happen, and frankly expects it to happen, nothing will happen until the CBA is resolved. That's the first thing to handle. But while the NFL is dealing with that, AEG is shopping for an architect and expects to have the plans in place within 6 to 8 months including the Environmental Impact report -- which, coupled with the naming rights and financing, would be all the hurdles they'd need to overcome to lure two teams here. The focus seems to be on one team but Jones and Kraft are apparently hoping for two. Which, makes sense.

 

 

He refused to mention specific teams, but the Vikings, Jags and Chargers were the most talked about during the aftermath of the press conference.

LA had two teams, the Rams and the Raiders. They both moved. Why would it work now? It won't.

[Typical TBD Guy]

You've got to figure that the Chargers and Jags are the frontunners right now, with the Vikings, Raiders, Rams, and Bills as dark horses.

 

The silver lining for the Bills is that 4 billionaires - Rich, Jacobs, Golisano, and now Pegula - have publicly gone on record as having an interest in buying the team and keeping them in Buffalo should the time come that the team becomes available. Furthermore, we have Jim Kelly's mysterious financial group, which may already include some of the above 4 guys.

Edited February 2, 2011 by Internet Tough Guy

[Bills(70)]

You've got to figure that the Chargers and Jags are the frontunners right now, with the Vikings, Raiders, Rams, and Bills as dark horses.

 

The silver lining for the Bills is that 4 billionaires - Rich, Jacobs, Golisano, and now Pegula - have publicly gone on record as having an interest in buying the team and keeping them in Buffalo should the time come that the team becomes available. Furthermore, we have Jim Kelly's mysterious financial group, which may already include some of the above 4 guys.

Pegula is out. He is going to spend alot of money in multiple areas, the Bills aren't one of them.

Golisano isn't interested in another round in sports franchises either.

Jacobs? Maybe, but he lacks the financial means to achieve all of the necessary goals for the Bills to stay in Buffalo.

Rich? No way, he is down with this area.

Kelly? Hahahahahaha, please, if this guy had the tools together, it'd be a done deal already.

 

No, I think many people here are discounting what the real cost of the Bills is going to be.

It's not just the franchise itself. It's the new Domed Stadium that will without a doubt, have to be built for any Professional Football Team to stay here in the area and remain financially viable.

The team itself is no longer justified given the ever shrinking fan base regionally due to the constant lose of population numbers in the region as industries continue to downsize, fail or pack up and leave.

 

Without a Domed Stadium, the Bills are as good as gone, it's merely a matter of time now.

The cost of a Domed Stadium engineered for the eastern end of the Great Lakes would be roughly 1.7 billion dollars or more.

That does not include the price of the team.

[CosmicBills]

LA had two teams, the Rams and the Raiders. They both moved. Why would it work now? It won't.

I used to say that before I moved out here. It's a weird sports town on a lot of levels. But I will say that I think a downtown stadium would do wonders for the local support. One of the things Leiweke pointed out on the radio was that the ownership groups in the NFL who would consider moving KNOW that they have to succeed. The NFL KNOWS they have to succeed. Because LA is the only city in the country that can say they lost not one but two teams. That said, I don't think AEG nor Farmer's would have put this deal together if they didn't honestly think the tides have changed.

 

I tend to agree. I think the NFL is going to do very well in LA when they come back. And I do think they're coming back. Soon.

 

Pegula is out. He is going to spend alot of money in multiple areas, the Bills aren't one of them.

Golisano isn't interested in another round in sports franchises either.

Jacobs? Maybe, but he lacks the financial means to achieve all of the necessary goals for the Bills to stay in Buffalo.

Rich? No way, he is down with this area.

Kelly? Hahahahahaha, please, if this guy had the tools together, it'd be a done deal already.

 

No, I think many people here are discounting what the real cost of the Bills is going to be.

It's not just the franchise itself. It's the new Domed Stadium that will without a doubt, have to be built for any Professional Football Team to stay here in the area and remain financially viable.

The team itself is no longer justified given the ever shrinking fan base regionally due to the constant lose of population numbers in the region as industries continue to downsize, fail or pack up and leave.

 

Without a Domed Stadium, the Bills are as good as gone, it's merely a matter of time now.

The cost of a Domed Stadium engineered for the eastern end of the Great Lakes would be roughly 1.7 billion dollars or more.

That does not include the price of the team.

 

You're not going to need a dome. The Giants and Jets just paid 1.5 billion dollars on a new stadium without a dome. But yes, a new stadium will be needed down the line. But I don't think that's as big of a hurdle as you think it will be. A new ownership group will certainly sell the naming rights and partner with some corporation to keep the team in Buffalo. I think that will have to be part of the deal ... and I think it will be. Because without it, you're right. LA will be a very logical solution.

[Bills(70)]

I used to say that before I moved out here. It's a weird sports town on a lot of levels. But I will say that I think a downtown stadium would do wonders for the local support. One of the things Leiweke pointed out on the radio was that the ownership groups in the NFL who would consider moving KNOW that they have to succeed. The NFL KNOWS they have to succeed. Because LA is the only city in the country that can say they lost not one but two teams. That said, I don't think AEG nor Farmer's would have put this deal together if they didn't honestly think the tides have changed.

 

I tend to agree. I think the NFL is going to do very well in LA when they come back. And I do think they're coming back. Soon.

 

 

 

You're not going to need a dome. The Giants and Jets just paid 1.5 billion dollars on a new stadium without a dome. But yes, a new stadium will be needed down the line. But I don't think that's as big of a hurdle as you think it will be. A new ownership group will certainly sell the naming rights and partner with some corporation to keep the team in Buffalo. I think that will have to be part of the deal ... and I think it will be. Because without it, you're right. LA will be a very logical solution.

LA will not be the destination.

In case you haven't noticed, Toronto is being groomed.

(It baffles me how so many people are in denial over this).

 

Yes, in point of fact, the area will need a Domed Stadium. Comparing NYC to Buffalo is oranges to apples. The weather is as different as night and day. One sits by frozen fresh water, the other by moderate temp ocean.

You cannot seriously compare the 2 when it comes to the need of a domed stadium or not.

For this region, on the "Western" side of the Appalachian Mountains with weather 7 months out of the year flowing down from the arctic via Western Canada and the Great Plains of the US, then crossing the large bodies of fresh water, a domed stadium is the only way you are going to get a servicable 365 days worth of business out of a facility of this nature.

 

And don't kid yourself, Football is a business, first and foremost, just like any other, and as such, positive cash flow is the only way to mark success. Especially for a constantly declining area such as WNY.

[reddogblitz]

Screw a dome. dome's are for sissies. Real men play out side.

 

I see no reason that LA should get a team. They've already run off 3 teams. The Chargers, Rams, and Raiders.

 

If they do get a team, they won't support it unless they win.

 

LA is not a (NFL) football town. Pure and simple.

[Typical TBD Guy]

Pegula is out. He is going to spend alot of money in multiple areas, the Bills aren't one of them.

Golisano isn't interested in another round in sports franchises either.

Jacobs? Maybe, but he lacks the financial means to achieve all of the necessary goals for the Bills to stay in Buffalo.

Rich? No way, he is down with this area.

Kelly? Hahahahahaha, please, if this guy had the tools together, it'd be a done deal already.

 

No, I think many people here are discounting what the real cost of the Bills is going to be.

It's not just the franchise itself. It's the new Domed Stadium that will without a doubt, have to be built for any Professional Football Team to stay here in the area and remain financially viable.

The team itself is no longer justified given the ever shrinking fan base regionally due to the constant lose of population numbers in the region as industries continue to downsize, fail or pack up and leave.

 

Without a Domed Stadium, the Bills are as good as gone, it's merely a matter of time now.

The cost of a Domed Stadium engineered for the eastern end of the Great Lakes would be roughly 1.7 billion dollars or more.

That does not include the price of the team.

 

Well aren't you just a precious ray of sunshine tonight...

[Geno Smith's Arm]

I live in LA. One team can be successful as long as it can weather the bad seasons. Very "fair -weather fans" (USC certainly knows this).

 

The 2 team thing is just Jerry Jones egomania. The funny thing is that he will lose a substantial market for Cowboy trinkets if a new LA team (or teams) is successful because the Cowboys have a huge fan base here (the Cowboys are "Mexico's Team" as well as "America's Team". JJ just can't resist "thinking big". If 2 teams were to come to LA, it would likely take at least one team a lot longer to get established, and JJ wouldn't even get to reap the benefits because he would be dead and gone.

 

I don't think the Bills will move to LA, they occupy an area of the North America (not just Buffalo) that it is in the leagues interest to serve. Toronto is more likely, but I don't expect that to happen either.

[sweatpantsjoe]

I love how people who have probably never left Buffalo in their lives let alone been to LA are experts and have already deemed NFL football in LA a failure because the Rams and Raiders left 16 years ago. How long did it take Baltimore to get a team again? What about St. Louis? Its not because the fan support isnt here, its because of idiot politicians and legislators bickering with the Billonares and amongst themselves as to where a stadium should be built. I would figure the people of Buffalo would relate to this. But it looks like its finally going to happen, and just a shade under 20 years by the time its done....a long time yes, but considering how long its been since Buffalo has did anything with the Waterfront, or built a new Peace Bridge, 20 years isnt bad at all.

[ThurmasThoman]

What was interesting to point out was that he referenced that Jerry Jones and Kraft have been at the forefront of pushing the league to have a team -- and based on the Jets and Giants, they believe LA should have TWO teams.

 

this absolutely sickens me. the thought of kraft even being able to mention (whether it happens or not,) the idea of buffalo or minnesota relocating is criminal.

 

the patriots were nothing, nobody, insignificant... for years. by cheating, they won 3 superbowls in 4 years, were severely punished by the league, and have not won jack since then. their team is on the downslide now, their defense is terrible. pioli left them for kc, and they havent brought in equal talent since his departure. in 2013, when this is supposed to happen, the pats will be right back where they belong - to being the patsies. a cupcake win on everyones schedule. belicheck will have left town, brady will have retired to pursue a political career.

 

and youre gonna tell me that the owner of THAT team wants to move the legendary MINNESOTA VIKINGS?!?!?!?!

 

all i can say, is bills nation better fight just as hard to keep the vikings in minnesota as we do to keep the bills in buffalo. would truly be a monumental loss for the league to lose a fanbase that rabid.

[Mr. WEO]

All excellent points.

 

From my understanding (based mainly on the chat with Leiweke on 710 tonight), AEG is planning on making most of their money from other events outside of the NFL. Like: The Final Four, a possible annual BCS Game, Conventions -- of which they discussed many, and the occasional Super Bowl. They made clear they would have at least a minority ownership stake in the NFL club as well, but they seemed to be playing coy about outright buying one. Which I think is because there are no teams for sale so long as Ralph and Davis are alive. But it seems that AEG would be content just convincing a current owner to move in exchange for a small stake in the team. Which, I think an owner like Wayne Weaver or Wilf or (definitely) Spanos would be willing to do considering the increased value to their franchises a move to LA would bring. The one thing Leiweke kept reiterating tonight though was that they weren't going to steal a team in the middle of the night. That he in fact has ongoing conversations with "several" teams about moving the team to LA. Which I take to mean as teams not in Buffalo since Ralph wouldn't be having such talks.

 

What concerned me was the talk of moving 2 teams rather than just one. I think if they do that, San Diego is for sure one of them though ...

The Final Four isn't going to be in LA every year. Maybe every 10. Same with Super Bowl. LA likey has tons of convention space--how many organizations need a massive stadium for a convention. Assume the weekly gate for 8 home games is 7 or 8 million--a chink of that goes to the visiting team. How much is left for the team to pay in "rent"? There is no such model anywhere in the League (or in pro sports?)--any teams paying rent for their stadiums (like Ralph) are paying a nominal fee at most.

 

None of what you mention explains how these guys cover the monthly nut on a billion plus loan.