Real NFL and NCAA Spin from LA



133693561JH020_LA_Mayor_wilBy Jaboner Jackson 8 a.m. | Last week, Yahoo! Sports was late to the NFL in LA party when Jason Cole reported what had already reported two months prior--AEG's attempt to secure the return of professional football to Los Angeles had run into a few road blocks. In January, noted that Mayor Antonio Villaraigosa had met in late 2011 with AEG's owner, Philip Anschutz, to discuss stalled progress on Farmers Field in light of a delayed Environmental Impact Report (EIR) and the NFL's own concerns about the financial model and cost of the stadium. We stated that "although Farmers Field has always been a done deal at the city level, it is the NFL that must finally make Farmers Field a reality." Today, we sift through the smoke surrounding the NFL in LA with the insight and objectivity that only can deliver.

Forget The Past

While Yahoo! Sports and LA Times focus on stories that we have already reported on, we move into the future to address ongoing negotiations between AEG and the San Diego Chargers and Majestic Realty and the Oakland Raiders. Majestic Realty's LA Stadium in City of Industry has been shovel-ready since 2009 while Farmers Field will be shovel-ready early next year. Majestic dealt deftly with Sacramento in 2008 to provide EIR litigation protection for LA Stadium and then this past summer AEG moved mountains in Sacramento to provide their own form of litigation protection for Farmers Field. Accordingly, Los Angeles will have two shovel-ready stadium plans by the end of the 2012-13 NFL season.

The key date for the NFL in LA will be February 15, 2013. This is the date by which an NFL team must notify the league offices of its intent to relocate. Up until this date, both AEG and Majestic will continue to negotiate in earnest with the Chargers and Raiders respectively.

AEG, Farmers Field, and the San Diego Chargers

Contrary to Cole's report, AEG is far from dead in the NFL in LA race. AEG and its lead architect, Gensler, have already modified stadium design plans for Farmers Field to address construction cost concerns raised by the NFL. And this summer, AEG and Anschutz will begin to renegotiate with the Spanos family about relocation.

Specifically, we expect Anschutz to explore in earnest the acquisition of 30% of the Chargers with a Right of First Refusal on additional equity positions. The 30% acquisition by Anschutz will satisfy estate tax planning needs for the Spanos family and provide a minimum rate of return of 15% for Anschutz on his equity position.

Even though Anschutz has tried to negotiate a portion of the Chargers at a discounted valuation, we expect Anschutz to buy into the Chargers at market value, meaning a 30% equity ownership stake would cost approximately $240-270 million. We expect Anschutz to defray the cost of this equity position by selling the Chargers a minority equity position in Farmers Field.

Majestic Realty, LA Stadium, and the Oakland Raiders

While AEG continues to focus on the Chargers as their anchor tenant for Farmers Field, Majestic Realty and owner Ed Roski will continue to negotiate with Mark Davis and the Oakland Raiders about relocation to LA Stadium. Davis and his mother, Carole Davis, currently own 47% of the Raiders. Davis will look to sell approximately 16% of the team to Roski as a limited partner. We also believe that three additional limited partners of the Raiders--Dan Goldring, David Abrams, and Paul Leff--will also explore an equity sale to Roski. In turn, the Raiders will finance the construction of LA Stadium, utilizing the same debt model employed by the San Francisco 49ers for Santa Clara Stadium, a situation that we have explored in full on this site.

AEG Versus Majestic

Contrary to Cole's article, the NFL will not decide whether Los Angeles will once again be home to professional football. Due to federal antitrust provisions, the NFL does not have the right to preclude an NFL team from relocating so long as the NFL team fulfills relocation criteria. Al Davis' successful litigation against the NFL in the 1980's and 1990's established these precedents.

Although the NFL spearheaded the process by which Majestic and then AEG became involved in local stadium development, the Chargers and Raiders will now figure more prominently in the process. The NFL will ultimately determine relocation fees of between 10-20% of the franchise valuation of the relocating team but will let AEG and Majestic battle for the NFL in LA.

Meanwhile, neither the Chargers nor the Raiders will be naïve enough to think that the NFL in LA is a done deal. Both the Chargers and Raiders will continue to explore their own stadium situations in San Diego and Oakland, using Farmers Field and LA Stadium as negotiating platforms for stadium financing in their current cities. But unfortunately for San Diego and Oakland, both municipalities will still be years behind Los Angeles' two shovel-ready stadiums.


Forgot what an EIR is? Check out our NFL in LA Glossary here. And as always, take our NFL in LA Challenge here.


Photo: Getty Images

Comments (48) Trackbacks (0)
  1. When the EIR gets released, let the blood bath between Roski and AEG begin. All their lawyers will get richer.

  2. Is anyone else now utterly confused? It seems like there might be something behind the scenes between the NFL, AEG and Roski for power. All sides are letting this play out through the media. But no one is giving us anything concrete beyond generalities. AEG has a team, I have to believe, otherwise why go through the expense of getting Farmers off the ground? I believe that the Chargers are probably that team. What I don’t believe is that AEG just wants a small part of them. I don’t believe the Raiders are coming back to LA. It’s way too poliitically charged. No one even knows what Mark Davis wants to do. Maybe AEG will buy the entire Raiders if they get a chance though.

    • Raiders will be for sale. AEG will buy the Raiders. LA Raiders will be back, just in time for a winning run to the Super Bowl. Raiders will own LA.

  3. My question is this? Will Mark Davis sell the ENTIRE team? Or only 16%?

  4. The tactics of the NFL, AEG, Majestic and the City of Los Angeles should not come as a surprise to anyone. 99% of the information spoonfed to masses is caring spun and packaged to sway public opinion. Every single party involved in the NFL returning to Los Angeles debacle has skin in the game. The NFL wants to use LA as a leverage tool against other cities. AEG and Majestic obviously want the revenue generated from leasing to an NFL franchise. AEG in particular wants the highly lucrative covention center business that will accompany the expansion to Pico Hall. The City of Los Angeles wants the incremental tax revenue that comes with the tourism generated by devoted NFL fans. The City also wants the union jobs that will accompany the construction of FF. With all of these agendas it is no wonder the messages so convoluted. It’s time that somebody expose these people for the corporate crooks that they are. Personally I hope the NFL never comes back to Los Angeles.

    • @greg I agree on these points but I disagree on not wanting the NFL back in LA. What’s the downside to having the NFL back? As long as public money isn’t used to bring someone to LA (and it’s not in the plans to use public money), then the NFL would be a good addition.

      • the downside is getting stuck with shitty local team games to broadcast on sundays and the possibility of blackouts….I’d much rather have 3 hand picked games by Fox & CBS than be stuck with the local team or worse yet 2 local teams….If I want to see a nfl game in socal I’ll drive or take the train to sd.

        as a tv fan we’ve got it pretty damn good right now.

        • IMO the NFL needs to put more games on in more places, especially the internet and streaming games. It’s kind of ridiculous that fans can’t watch the games they wanna see. All games should be on demand…there has to be a market for that. Of course, Direct TV has on demand games but not everyone has Direct TV.

        • I don’t know what you’re smoking but Los Angeles always gets the Chargers and/or Raiders on television. ALWAYS the Chargers, we’re in their secondary market, we always have to broadcast their games.

          • There was a poll I think by the LA Times that showed the favorite teams in LA. Anyone remember who was who or the link?

  5. @everyone. The NFL returning to Los Angeles embodies everything wrong in the business world. Corruption and greed run rampant with the tax payers being nothing more than pawns in the shameless money grab. We all know that the City and AEG or Majestic already have shady back door deals place that will result with the tax payers subsidizing billionaires. This is equivalent of our goverment being run by the Free Masons. The irony is that nothing is free when the Free Masons are involved.

  6. Remember the convention center? As a citizen of LA I Want the convention center expanded. If it makes it so football needs to come back then so be it.

  7. I’ve been saying this all along: the NFL is messing around with LA again only because there still is no Vikings stadium and no Chargers stadium and no Rams deal etc. It won’t come back. I’ve heard about these scenarios for 20 years and I remember every attempt before. There was nothing wrong with past attempts except the NFL didn’t want to come back. Same thing now. It was all speak for the CBA and hoopla. If the NFL wanted to come back, they would be working with AEG and not against them. How does the NFL have blatant disregard for AEG’s plans? Shouldn’t the NFL be working with AEG if the NFL was serious?

    • it’s because aeg’s plan is a total lowball offer for partial ownership and relocation fee…the league has rarely played hardball with any cities other than sf/santa clara and they finally got the city of sc to bend over backwards into a very risky deal.

      also everyone seems to forget that this is aeg’s 2nd attempt at a downtown stadium so it’s not like they are known for getting into a negotiation and not backing out .

    • Because AEG wants to grab a majority of stake of the franchise, 49% of the ownership, they want a large piece at a deep discount. AEG will be charge in ticket prices, team marketing, relationships with suite and club-seat customers, naming-rights deals and the like. No NFL teams are willing to give up that power. The NFL wants the team to pay for the stadium, not a private company. This is why Majestic Realty will get the edge here and they will agree terms with the Chargers. Hopefully, they will also bring back the Rams. Keep the Raiders in Oaktown. I hope they move forward with the Oakland Live! project.

  8. Not every city will get a brand new stadium and one as lucrative as the LA market. This time it is for real and Rodger Goodell will pick the team. They can still use LA as leverage for a 2nd team in the future being AFC or NFC that doesn’t reside in LA. Doesn’t mean it will happen but the threat will still be there.

    AEG will secure a team because they have invested a lot learned a lot and admittedly knowing what the NFL wants according to Tim Leiweke he has been all over the media this week explaining the negotiations. They will soften the deal but they will want a percent of a team to keep it in LA.

  9. The NFL has functioned very well for nearly 20 years without a team in the primary L.A. market. The league may want a team in L.A., but it won’t be bullied into a deal by Roski, Anschutz, or L.A. politicians. Having two properly entitled (shovel-ready + satisfactory EIR) stadium sites in L.A. allows the league to leverage one site against the other to ensure the best deal for its owners (and the long-term viability of NFL football in L.A.). . . It’s simple: Roski and Anschutz will eventually sweeten the business aspects of their respective stadium proposals more to the NFL’s liking, or the NFL will bide its time until the next L.A. stadium proposal comes along. In the meantime, teams can still use the threat of relocating to L.A. to properly leverage funding, stadium upgrades, etc. from their current cities.

    The NFL can operate from a position of power on all fronts.

    And by the looks of things, Anschutz (with Leiweke as his mouthpiece) is beginning to publicly change his tune regarding the business aspects of his stadium proposal:

    Dr. Spankatronix expects a response in kind from the folks behind the Grand Crossing stadium site (Roski, Semcken) soon. Things will really get interesting then.

  10. Greate pieces. Keep writing such kind of information on your site.
    Im really impressed by it.
    Hi there, You’ve performed an incredible job. I will certainly digg it and personally recommend to my friends. I’m sure they will be benefited from this website.

  11. Since the admin of this site is working, no hesitation very quickly it will be famous, due
    to its quality contents.

  12. This text is priceless. Where can I find out more?

  13. I was suggested this website by my cousin. I’m not sure whether this post is written by him as nobody else know such detailed about my trouble. You’re amazing!

  14. This outstanding Mongolian wonder can be further admired by staying at a nearby.
    Visiting Bihar today you will find that the locals are less
    worried about its glorious history and its historical ruins.
    I learned quick enough and soon started to best her in multiplayer.

  15. I’m really loving the theme/design of your website. Do you ever
    run into any internet browser compatibility problems?
    A few of my blog readers have complained about my website not operating correctly in Explorer but looks great in Firefox.
    Do you have any solutions to help fix this issue?

  16. Pretty! This has been an incredibly wonderful article.
    Many thanks for providing these details.

  17. Everything is very open wifh a very clear explanation of the issues.
    It was truly informative. Your site is very useful. Thank you for sharing!

  18. Good post. I learn something new and challenging on blogs I stumbleupon everyday.
    It will always be useful to read articles from other writers and use a little something from other websites.

  19. Kratom 15x migght be organized in a numbr of means
    these as brewing it in tea. It could possibly be stirred into
    fruit juice or shaken into a botttle of water. Furthermore, it could possibly bbe mixed
    into yogurt, honey, chocolate syrup and also other tasty food items.

    Kratom 15x is fairly much like the Thai lyophilized exdtract whilst it really
    is a biit mmore powerfu in its euphoric effects. After taken,
    the consequences of kratom 15x are felt in 5 to 10
    minutes and will previous for various several hours at a time.

    Its consequences are regarded as stimulating or sedative, dependent about the dose.
    The person who consumes it encounters lessened fatigue, a fadt improve of electricity and the power to concentrate
    much better.

    Kratom.Professional is among the major on
    the internet distributors offering the top charges,
    freshest and strongest Kratom 15x to its shoppers.
    Kratom.Professional delivers handpicked kratom extract in
    the most pophlar kratom strains and it has a big selection of
    powders, leaf, tincture, resin, extracts and reside kratom vegetation obtainable and
    prepared foor speedy cargo. To understand far more about kratom’s remarkable powers and Kratom.

  20. Hi my family member! I wish to say that this post is
    awesome, nice written andd come with almost all vital infos.
    I’d like to peer more posts like this .

  21. Ahaa, its nice dialogue concerning this piece of writing at this place
    at this weblog, I have read all that, so now me also commenting here.

  22. Awesome things here. I am very satisfied to see your post.
    Thanks a lot and I am looking ahead to touch you. Will you kindly drop me a

  23. I hardly comment, however i did a few searching

  24. On the web large educational facilities have gotten significantly preferred being aan
    alternate too conventional substantial educational
    institutions. While these are not with out their unique one of a kind list of problems,online substantial faculties, specially thoise which permit for earning a significant university diploma on
    the net, will only mature in quantity annd popularity.

    Thouugh there are a number oof various good reasons for why a
    scholar could elect to attend an internet large school, down below are
    5 well-known motives:

  25. On line superior universities are becoming significantly popular being an alternative to classic superior faculties.
    When they are really not devoid of their particular exceptional set of challenges, online higher educational institutions, specifically people which permit
    for earning a higyer university diploma online, will onmly mature in range and recognition.

    Even though thjere aree a number off various causes for why a pupil could elect to go to an
    on-line large college, under are 5 well known causes:

  26. On line higher universities have gotten significantly popular aas
    an alternative to common substantial schools. When they can be not with out their particular unique list of complications, online higher faculties, notably those people whiich
    permit for earning a significant college diploma online, will only improve inn range
    and popularity.

    Although theree are a number of various reasons for why a college
    student may elect to go to an on-line high college,
    down below are 5 preferred causes:

  27. On line large colleges have gotten ever more preferred as an choice to traditional significant colleges.
    When they are not with no their own individual special list
    of challenges, on the internet high schools, significantly people which permit
    for earming a high college diploma on the web, will only mature in quantity
    and popularity.

    When there are a number of different factors for why a pupil could possibly elect
    to go to an internet large school, beneath are 5 well-known good reasons:

  28. On-line significant educational institutions have become evver
    more well-liked being an differnt to conventional large colleges.

    When they ccan be not without having their very own exceptional seet
    of challenges, online sjgnificant faculties, particdularly individuals whuch permit for earning a high faculty diploma on the net, will only grow in
    amount and recognition.

    Altfhough there are a variety of various factors for why a university student may
    elect to go too an on-line high college, below are five well-liked factors:

  29. Wow, wonderful weblog format! How long have you ever been
    running a blog for? you made blogging glance easy. The total look of your web site is
    fantastic, let alone the content material!

  30. Oh my goodness! Amazing article dude! Thanks, However I am having issues with your RSS.
    I don’t understand why I cannot join it. Is there anybody
    else getting identical RSS issues? Anybody who knows the solution will you kindly respond?

  31. There is definately a great deal to learn about this subject.

    I like all the points you have made.

  32. hey there and thank you for your info – I’ve certainly picked up something new from right here.

    I did however expertise a few technical points using this web site, since I experienced to reload the site many times previous to I could get it to
    load properly. I had been wondering if your web hosting
    is OK? Not that I am complaining, but slow loading instances times will often affect your placement in google and can damage your high quality score
    if ads and marketing with Adwords. Anyway I’m adding this RSS
    to my email and can look out for a lot molre of your respective intriguing content.
    Make sure you update this again soon.

  33. Yes! Finally something about free youtube account creator.

Leave a comment

Current day month ye@r *

Trackbacks are disabled.