Real NFL and NCAA Spin from LA



By Jaboner Jackson 8 am | While the FOOTBALLPHDS get ready for a new Collective Bargaining Agreement (CBA) to wind its way through the hands of the NFL and NFLPA, we are exploring the various methods that the NFL and its teams use to finance Brand Spanking New Stadiums.  The Disposition and Development Agreement (DDA) is the ultimate step in getting a new stadium off the ground.  It is used by the city or redevelopment agency to carry out a specific project.  Since my mother was so much in love with the question and answer format we used in G3 Financing, here it is once again.

What is a Disposition and Development Agreement in regards to NFL Stadiums?

A Disposition and Development Agreement (DDA) is an contract between a city or its redevelopment agency and an NFL team to develop a plot of land for an NFL stadium.  It is a legally binding contract that means that a stadium is going to happen.

Is the DDA the same thing as the Memorandum of Understanding that keeps getting mentioned in accordance with Farmers Field?

No, a Memorandum of Understanding (MOU) is different.  An MOU precedes a DDA.  A MOU will outline certain aspects of a stadium deal but it will not spell out the specifics of it.  Furthermore, an MOU is not a legally binding contract while a DDA is.  Theoretically, a city or NFL team can back out of an MOU without legal penalty.

Does this mean that the MOU that the Los Angeles City Council is slated to vote on by early August is just a load of crap?

No.  While the MOU is not legally binding, the MOU does begin the process of getting a stadium project formally off the ground.  For example, AEG and the City of Los Angeles signed an MOU for Staples Center in downtown Los Angeles in spring 1997 and then signed a DDA a few months later that same year.  Groundbreaking on Staples Center began after the DDA.

So which of the proposed NFL stadiums have DDAs in place?

None of them.  Neither Farmers Field, the East Village Downtown San Diego Stadium, Santa Clara Stadium or the Ramsey County / Minnesota Stadium have a DDA in place.  Furthermore, none of these proposed stadiums even have an MOU in place.

So if a stadium has an MOU in place does it mean the stadium is pretty much a done deal?

Yes.  Even though an MOU is not legally binding between the city and NFL team, the reality is that framework to begin construction has been put in place.  After an MOU is in place, developers will usually spend real money on moving forward, which then entitles them to move forward.  So even though an MOU is technically not legally binding, in reality it is.

Does this mean that Farmers Field is a done deal?

Yes.  Farmers Field has been a done deal for months already.  The MOU will be signed by the City of Los Angeles without an Environmental Impact Review having been completed, which means that no genuine process is being followed by the City for Farmers Field.

Is the Santa Clara Stadium close to getting an MOU?

The City of Santa Clara is not even worried about an MOU.  Instead Santa Clara is trying to nail down a DDA with the San Francisco 49ers.  They have already Keyser Marston Associates, whom they hired $400K, to draft a DDA, which we expect to be completed by the end of 2011.

Is the City of San Diego close to having an MOU in place with the Chargers?

No.  They are not even talking about an MOU yet.

Is Minnesota or Ramsey County close to having an MOU in place with the Vikings?

No.  They are not even talking about an MOU yet.

So what does this mean for Brand Spanking New Stadiums?

It means that Farmers Field is the furthest along by far.  When the MOU gets signed, Angelenos can start saving up for their Personal Seat Licenses.


If you missed our treatise on G3 financing, catch it here.  If you want to get geeky with Stadium Naming Rights, get geeky here.  And if you want to learn about PSLs, learn here.  Thanks for getting geeky with us this week, Wonderful Readers.  We get back to Stack Re-Ranking the Teams Headed To Farmers Field next week.

Comments (2) Trackbacks (0)
  1. I need a toke of medicinal before I even to understand this

  2. Ha true dat!

    Peace brothers who will be in Ontario this weekend for the Growers Convention?

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