The Los Angeles City Council on Tuesday granted developer Anschutz Entertainment Group another six months to find a team for its proposed downtown NFL stadium, while also giving it more influence over any backup plan for the site.
On a 12-0 vote, the council agreed to make AEG a participant in what city officials have been calling Plan B — the effort to figure out how to upgrade the Los Angeles Convention Center if no stadium is built.
Why? Because an AEG exec said they’d been engaged in a “renewed dialogue” with the NFL on a franchise, so that’s apparently worth another six months of rope. And dealing in AEG on what to do with the site if there’s no stadium, so that the next six months isn’t entirely spent twiddling everyone’s thumbs. Though really, they could have spent the time RFPing out the site in case the stadium doesn’t happen, but then AEG would keep sitting outside pressing its face against the window and making sad puppy eyes, so nah.
That is uncomfortably close to Anschluss Entertainment Group.
I think this is what’s called selling the sizzle rather than the steak.
A 6 month extension? Ok. Whatever. I don’t get the feeling that the NFL is going to announce expansion within six months, and I can’t help but notice that Anschutz either didn’t bid or didn’t make the first cut on the most recent NFL franchise sale…
So I don’t think this 6 month extension will lead to anything but another 6-12 month extension. The basic problem with the Anschutz plan has never changed: NFL teams don’t want to pay for their stadia. Demanding 30-60% equity in exchange for building the stadium doesn’t change that fact or invoke any kind of “magic” math. Why would an owner give up equity to get into a third party controlled stadium in LA when some dimwit in another city will build them one for free, then gift them the operating rights forever… and probably pay for stadium ops costs as well?
Ergo, if AEG wants a team, it’s going to have to buy one. So who’s next on the block? Life is pretty good for NFL owners right now (not that it’s ever been really bad…) why would anyone sell all or part of their holdings?
@John Bladen
This is why I think the Rams will wind up moving to Inglewood. Their owner owns property at Hollywood Park so you cut out the middle man (AEG).
Next, you have to figure out how to pay for it but if ownership can get anything close to the $700-$900 that Farmer’s Insurance is offering AEG for the downtown site then you have the makings of a deal.
Neil
Did you miss the part where planning for the convention center expansion is on going and AEG is paying for it? From that link.
“As part of the agreement, AEG will provide $750,000 for design work on a convention center modernization that would not include a stadium.”
This extension is a no brainer and saving taxpayers money.
One interesting thing is Kroenke was just given a 6 month extension to comply with the NFL’s cross-ownership rules. Transferring ownership of the Avalanche, Nuggets, and Rapids to his son doesn’t qualify because the NFL rule includes close relatives. Obviously that easily could have been completed in the last 4 years if it were allowed.
Kroenke could sue the NFL, the NASL sued because of cross-ownership and won 30+ years ago. There’s speculation that Kroenke is going to sell the Rams to Philip Anschutz at the end of this season.