[majik]

From Pro Football Rumors

Los Angeles Relocation Fee To Be $500MM+
November 16th at 9:07am CST by Luke Adams
NFL owners have informally decided on a relocation fee worth between $500MM and $600MM per franchise for a potential Los Angeles relocation, reports Daniel Kaplan of SportsBusiness Journal (via Twitter). According to Kaplan (via Twitter), the amount isn’t yet set in stone, but people within the league expect it to be in that $500-600MM range.

The NFL’s relocation policy dictates that a relocating franchise “will ordinarily be expected to pay a transfer fee to the league” in order to compensate the rest of the league’s teams for loss of opportunity to move to that new market themselves, as well as to account for a potential increase in the value of the relocating franchise. Kaplan had indicated (via Twitter) in August that the league may look to share a portion of a relocating team’s profits this time around, rather than charging a straight relocation fee, but it looks like that won’t happen.

Kaplan’s latest report falls somewhat in line with what Nick Canepa of the San Diego Union-Tribune heard way back in April. At the time, Canepa wrote that the Los Angeles relocation fee could be worth upwards of a half billion dollars, suggesting that he thought it should be even higher than that.

The relocation fee shouldn’t be an issue for any team interested in moving to Los Angeles, though the fact that Kaplan specifies the fee applies “per team” is worth noting. There had been some speculation in the past that the Raiders and Chargers would split the relocation fee if the Carson project were to move forward, but it sounds like that’s not the case. It will be interesting to see if owners are more inclined to support the relocation of two teams rather than one, since that would mean essentially doubling that relocation fee.

[dieterbrock]

Stan Kroenke response was allegedly, "Cash or Credit?"

[bubbaramfan]

Rams value goes from 900 Mil to 2.7 billion with a move to LA. Kroenke still makes a hefty profit overnight.

[Elvis]

Now.. this is where I think some of the love for Carson comes in.
Do I think LA should have two teams dropped in at the same times after 20 years? No. Doesn't make sense.

But... if you're a greedy owner? You double the amount you make on relocation. That will sway some of those morons.

This is a really good point.

1.2 billion divided by 30 owners is 40 mil per.

If Stan's relocation money is used to help Oakland and SD in their home markets, that's 40 mil vs. 0 on something that really doesn't impact the other owners at all.

On the other side of the equation we have:

SD and Oak may not be able to come up with their money very easily.

Carson still smells like a fraud (to me anyway).

And Stan might not take losing lying down...

[Elvis]

http://www.bizjournals.com/stlouis/blog ... ml?ana=twt

Kroenke would pay at least $500 million to move Rams to LA: Report

Brian Feldt

Half a billion dollars — that’s the minimum Stan Kroenke would likely have to pay the National Football League to move the St. Louis Rams to Los Angeles.

That’s according to Street & Smith’s Sports Business Journal, a sister publication of the St. Louis Business Journal. The report said NFL owners have coalesced around charging a relocation fee of between $500 million and $600 million for each team that moves to Los Angeles. Aside from the Rams, owners of the San Diego Chargers and Oakland Raiders are also looking to move to L.A.

The $500 million figure is not too surprising, given that officials familiar with the moving process predicted that amount as a ceiling for a relocation fee as early as March.

But with $500 million now the starting point, it shows how lucrative the NFL expects the Los Angeles market to be for whichever team moves there.
Of the three owners eying relocation, Kroenke, the real estate and sports mogul worth $7.7 billion, looks to be most able to make the relocation payment.

The final relocation fee is expected to be determined after the league decides which Los Angeles stadium project gets the nod — either Kroenke’s $2 billion stadium in Inglewood, California, or the Chargers’ and Raiders’ project in Carson, California. That decision could happen as early as mid-January or as late as April.

In St. Louis, a task force led by Dave Peacock and Bob Blitz is working to build a $1 billion NFL stadium on the city’s north Mississippi riverfront in an effort to keep the Rams. The plan has just a few remaining hurdles, including a key vote by the St. Louis Board of Aldermen, which is considering a financing plan that would call for the city to contribute more than $233 million in bond payments, including interest. Further, the National Football League would receive about two-thirds of game-day tax revenue associated with the proposed stadium project. All public financing is contingent on a $450 million investment from the NFL and a team owner.

[Stranger]

Rams value goes from 900 Mil to 2.7 billion with a move to LA. Kroenke still makes a hefty profit overnight.

I'd still buy them at that price

[Elvis]

[Elvis]

As I've said before... Kap throws a lotta shit out there...

Honestly, does anyone think that 500 million number is a surprise to any of the teams trying to move and that they haven't made plans accordingly?

I mean.. with a move.. the Chargers could sell about 20% of the team for $500 Million.. there's your cash.

Would you enter that kind of process without having an idea of what it would entail?

I agree. Kaplan probably doing a little wishful tweeting...

[Stranger]

As I've said before... Kap throws a lotta shit out there...

Honestly, does anyone think that 500 million number is a surprise to any of the teams trying to move and that they haven't made plans accordingly?

I mean.. with a move.. the Chargers could sell about 20% of the team for $500 Million.. there's your cash.

Would you enter that kind of process without having an idea of what it would entail?

Yes, if your intention was never to move, and to reap the rewards of a relocation fee in order to pay for a new stadium in your current market?

And yes, if you had Mark Fabiani running public relations for you.

[Stranger]

Why do u believe that? I'm not convinced.