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L.A. in the Market for a NFL Franchise

July 26, 2011 7 comments

In the last few years we’ve heard the rumors that Los Angeles was close to bringing a NFL franchise back to the city. Los Angeles has a history of stealing NFL Franchises away first with the St Louis Rams in 1946, then with the Oakland Raiders in 1982.

Rending of the $1 Billion stadium courtesy of Los Angeles Times

Nearly 40 years later L.A.  is at it again attempting to entice a NFL franchise to move back to the City of Angels. Recently the city of L.A.  released a draft of a “Memorandum of Understanding”  which is a basic outline of an agreement between AEG and the city to build the $275 million dollar wing on the Los Angeles Convention Center and the attached Farmer Field for a $1.2 billion stadium and events center. AEG President Tim Leiweke  is hoping to have the city council vote July 31st on whether they will issue the nearly $300 million in bonds and approve the deal, but recently stated he expects it to slip into August. At this present moment this means very little as the official deal would be about one year away. The agreement also states that construction cannot begin until a NFL team has signed a contact to play at Farmer Field. There has also been a little competition within the city.

This image provided by AEG shows the proposed NFL stadium, to be named Farmers Field in Los Angeles. It would have approximately 72,000 seats, with 200 luxury seats and 15,000 club seats.

Ed Roski’s real estate development company Majestic Reality has had permits in place for nearly two years for its 75,000 stadium east of L.A. but has not secured a NFL team.

So who’s it going to be? With the agreement getting slightly closer, five potential teams have been thrown in the conversation. The teams being the San Diego Chargers, St Louis Rams, Oakland Raiders, Jacksonville Jaguars, and the Minnesota Vikings. All teams in different markets with the exception of Oakland and San Diego. Currently San Diego is the favorite as they started in L.A. at Coliseum and also have tried desperately to get a new stadium to replace their 45-year-old Qualcomm Stadium. ESPNLA announces that

“The Chargers can announce their intentions to leave San Diego between Feb. 1 and April 30 of each year through 2020 if they pay off the bonds, which currently would be about $26 million, used to expand Qualcomm in 1997.”

But dont count out the other four teams. At this point it could be any team who moves to Los Angeles. I believe you could make a good argument for each team. As for attendance the Oakland Raiders could use the most help as they have not only the lowest attendance of the five potential teams, but they also recorded the second lowest attendance in 2008 next to the Detroit Lions with 462,000. The Oakland Raiders also had the lowest value of any NFL Franchise  in 2009 at $797 million with an operating income at -$5.7 million according to Forbes.com . It seems as far as numbers, the Raiders could use the most assistance. Not to mention with the NFL sharing ticket revenue taking one of the lowest ranking teams in attendance and potentially making them a top 10 ranking as far as attendance could be very good for all teams. Regardless L.A. will bring a strong fan base and a high atmosphere to whomever chooses to come in addition to a new stadium in a high entertainment market. Oakland has my vote, but what do you think?