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In Assessing Chargers Options, Do Cost Comparisons
So now European football has first appeared at the foothills of Mt. Fuji? Is this why our Japanese friends are good at it? Or was it the ancient Maya that played some sort of football and if they failed to pass the ball through a round hole were sacrificed? Come to think of it, a public sacrifice for the local football owners will be a nice event for the Q. We may even reach record capacity.— May 27, 2011 9:14 p.m.
In Assessing Chargers Options, Do Cost Comparisons
I don't dispute your breakdown. It is obvious that Jerry had to get creative and pass around the donation hat. But how did he finance $825 Mil.? Actually if you want to get an idea of how these deals get done Google "Raiders Stadium Financing" and you will see a pdf of a few pages by Goldman Sachs explaining in detail of how they financed similar venues (baseball, fooball, ice hockey...you name it). It a very complex process and as an owner you have to pledge everything to get it done (ticket revenue, TV revenue, merchandise, other event revenue). It has nothing to do with the economy. It has to do with the fact that with an average franchise valuation of $1 Bil., a new stadium construction would exceed the team value. Anyway, I have no idea why we are discussing new stadium financing here. This is San Diego. It will never happen here. The numbers are nowhere near and on top of that the "bright team owners" want a stadium of only 55,000 seats which will make the per seat cost skyrocket. No, never. The only thing you can hope here is a redo of the Q. The idea that the Chargers will otherwise move is beyond laughable.— May 27, 2011 8:59 p.m.
In Assessing Chargers Options, Do Cost Comparisons
johnston: Of course old stadia get upgrades. The same way the Q will get an upgrade for $100 Mil. and the Chargers will play there for the next 50 years. The point on AEG is that they are promoters, just like Jerry Jones' skill set. And yes they prefer to own a piece of the team but they certainly will not be willing to pay the ridiculous price that the Spanos leftovers will probably ask. So erase that possibility from your mind. You have neither a willing seller nor a willing buyer here. The new Wembley is also over the top but it serves other functions. It will be there for the next 100 years and beyond. And no, European football has not existed for 3000 years. 3,000 years ago was about when me and my 11 other Olympian Gods and Goddesses were beginning to have some fun. I can assure you fun then was nothing similar to football. And, us, the Yanks have not been playing football for 300 years. Exchanging nonsense like the type you serve) for 300 years, yes. Football, no.— May 27, 2011 8:26 p.m.
In Assessing Chargers Options, Do Cost Comparisons
Johnston: To understand what a bad example is the City of Arlington situation consider this. The stadium cost $1.3 Billion or whereabouts. The rent received by the city is $2 Mil + 5% of naming rights revenue, let's make it a fat $2.5 Mil. per year. The formula is V= R/i V = value, in this case 1.3 Bil. R = annual revenue i = interest so if we take $2.5 Mil divided by , say, 5% interest the value created is: 2,500,000 / 0.05 = $50,000,000. This is a far cry from $1.3 bil. that needs to be covered for debt service. The annual revenue needed(in this case) would be: 1,300,000,000X0.05 = $65,000,000 Feel free to play with any assumption numbers you like but the gap is huge. No Wall Street firm will put up the dough unless they see a significant annual revenue from the stadium.— May 27, 2011 8:09 p.m.
In Assessing Chargers Options, Do Cost Comparisons
Johnston: Tampa Bay pays $8.1 Mil annual rent. A state of the art new stadium would command $10-12 Mil. of annual rent. Stop looking at Texas, the City of Arlington or any of the Cowboys madness as a guide to the LA situation. Whatever Texas did is hardly a guide for a market driven, arms-length transaction. It is abundantly clear that no city will own any part of the two LA stadia. Both LA venues are 100% private and have 0% of public contribution(as of yet). Currently the local team here pays $700,000 annual rent which is equal to theft. Go to the city of San Diego website and you will see many reports related to rent analysis and other stadium related issues.— May 27, 2011 7:33 p.m.
In Assessing Chargers Options, Do Cost Comparisons
You really need to stop and take a breath here because you are mixing apples and oranges with abandon. 1. The minority owner is a certain George Pernicano with 3% share. 2. Anschutz Entertainment Group (AEG) owns the Los Angeles Galaxy, Houston Dynamo (50%), Los Angeles Kings, Ontario Reign, Manchester Monarchs, Eisbären Berlin with Berlin O2 World Ice-Arena,, Hamburg Freezers, 49% of Hammarby IF Fotboll, as well as interests in the Los Angeles Lakers, Los Angeles Sparks, Hartford Colonials and Reading Royals. The company also purchased the Champions on Ice figure skating tour in 2006, and own 12 % of Djurgårdens IF Hockey. The company makes a significant amount of its money by leveraging its sports interests, already significant earners, by using the stadia in which these teams play to host various other entertainment events, most notably concerts. Indeed, Philip Anschutz created the company by buying up several small local promoters in Los Angeles including ConcertsWest and Goldenvoice, promoter of the annual Coachella Valley Music and Arts Festival in order to fill up the schedule for his new sports venue, Staples Center. It is now the second-largest event promoter in the United States. 3. The world highest value sports franchise, Manchester United, plays in a stadium that was built in 1909 (more than 100 years old) and I think for approx. 90,000 pounds. It also has a manager that has been in the same position for the last 25 years. There is no nexus between the quality of a team and the age of a stadium. A mediocre team put in a brand new stadium will still be mediocre. Here is my suggestion: Watch the Barcelona vs. Manchester United game at Wembley on Saturday to see what it means to mix World Top 10 clubs with a fantastic/legendary sports venue. None of that can ever happen in San Diego. In London, home of the legendary Wembley there are at least 20 excellent football clubs within a radius of a few miles. Tip: Barcelona wins.— May 27, 2011 7:01 p.m.
In Assessing Chargers Options, Do Cost Comparisons
oh! so now you want teams who own a stadium to pay rent to themselves so that bookeeper Johnston can relax? You continue to provide punctuated nonsense. I am fairly certain from your replies that you have very little understanding of the business world. So here is your bright idea. There are two potential sites in LA each costing about $1 Billion to construct/develop. So, in your land of fairy tales you can approach either of them, offer 36% of the Chargers or whereabouts which is worth give or take $300 Mil. At that point, according to the Gospel By Johnston, the owners of both stadia will be so overjoyed that they will proceed immediatelly to put $1 Billion out of their own pockets to build a stadium. BTW, is this a deal that you will ever make yourself? If I give you $1 will you give me $4 back? This is absurd.— May 27, 2011 11:54 a.m.
In Assessing Chargers Options, Do Cost Comparisons
There you go again. An accountant's mentality with estate tax trivia. Who gives a rat's a$$ what the internal distribution of ownership % is? You are the one who put forward the feeble idea that in order to get the Chargers to LA instead of rent there will be some sort of barter ownership %. Are you mad or a complete amateur? You think that in an effort for Spanos to "Break Free" from SD (The equivalent of a Free Willy a la Chargers) that the leftover Spanoses will be able to agree on a fair price for the team and thus efficiently transfer shares to AEG or Roski in lieu of? BTW, don't you understand in the simplest possible terms that without getting a hefty rent for a new football(or other sport) stadium the stadium developer can not get financing to build it?— May 27, 2011 10:40 a.m.
In Assessing Chargers Options, Do Cost Comparisons
Don: Perhaps. Eventhough what you say is the accepted wisdom, therefore you are not telling me something I haven't heard before or I don't know. Same all same all, the politicos are corrupt and the developers are running City Hall. Old story really. Let me repeat it lest it helps you to understand. No one in LA wants the Chargers and the team owner can not move to LA because to put it simply the decision is not his to make. As for the scenario you heard about selling 33% or so of the team, this is the share of the old man -who is close to his expiration date - and wanting to avoid the Obama capital gains tax thought to end last year. So he had Goldman Sachs talk to a few people, among them AEW's Philip but nothing came of it because Obama extended the favorable capital gains treatment. Are you crazy? That of all people the old man will give up his share of the team as an exchange for his son of lesser competence to move the team to LA and to his eventual extinction? Not in a billion years.— May 26, 2011 8:31 p.m.
In Assessing Chargers Options, Do Cost Comparisons
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