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In Assessing Chargers Options, Do Cost Comparisons
Let me explain why it's a fantasy: Let's do some back of the napkin math: Exit fee from Q: $24 Mil. NFL entry fee for LA market: $500 Mil. Net Present Value of New LA lease: $240 Mil.(note 1) Total Cost of LA Move in Present $s = $764 Mil. Note 1. I used an imputed annual rent of $12 Mil. for the LA stadium discounted at 5% (what Jerry Jones pays for his bonds). The formula is NPV = Annual Rent divided by discount rate (an annuity). So, the whole key in assessing the cost to move to LA is the NFL entry fee. In a prior lawsuit filed by Al Davis about a failed deal in Hollywood Hills, he put the value of that market at $1.1 Billion. So, ask your friend if he knows what the NFL LA entry fee is. That's the million $ question.— May 24, 2011 8:24 a.m.
In Assessing Chargers Options, Do Cost Comparisons
Not surprised. Most of them, owners, look like thugs anyway.— May 23, 2011 11:24 a.m.
In Assessing Chargers Options, Do Cost Comparisons
Don: This is an excellent idea re:naming rights. In fact, beyond excellent. It is now a requirement that the City should try to mitigate its losses and this is a very legitimate way to do it. Again, this is the way to go. As far as Chargers going to LA this is pure fantasy/scare tactic. It's insulting to fans' intelligence to repeat such trash.— May 23, 2011 11:21 a.m.