Los Angeles Relocation Fee To Be $500MM+

NFL owners have informally decided on a relocation fee worth between $500MM and $600MM per franchise for a potential Los Angeles relocation, reports Daniel Kaplan of SportsBusiness Journal (via Twitter). According to Kaplan (via Twitter), the amount isn’t yet set in stone, but people within the league expect it to be in that $500-600MM range.

The NFL’s relocation policy dictates that a relocating franchise “will ordinarily be expected to pay a transfer fee to the league” in order to compensate the rest of the league’s teams for loss of opportunity to move to that new market themselves, as well as to account for a potential increase in the value of the relocating franchise. Kaplan had indicated (via Twitter) in August that the league may look to share a portion of a relocating team’s profits this time around, rather than charging a straight relocation fee, but it looks like that won’t happen.

Kaplan’s latest report falls somewhat in line with what Nick Canepa of the San Diego Union-Tribune heard way back in April. At the time, Canepa wrote that the Los Angeles relocation fee could be worth upwards of a half billion dollars, suggesting that he thought it should be even higher than that.

The relocation fee shouldn’t be an issue for any team interested in moving to Los Angeles, though the fact that Kaplan specifies the fee applies “per team” is worth noting. There had been some speculation in the past that the Raiders and Chargers would split the relocation fee if the Carson project were to move forward, but it sounds like that’s not the case. It will be interesting to see if owners are more inclined to support the relocation of two teams rather than one, since that would mean essentially doubling that relocation fee.

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3 comments on “Los Angeles Relocation Fee To Be $500MM+

  1. TJECK109

    Grammar error… For opportunity to move to move

    • Luke Adams

      Fixed, thanks.

  2. mcdusty31

    If DeBartolo Jr. joins the Raiders ownership group I’m all for the Raiders coming to LA…he was a top tier owner in his time with the 49ers and I think he’s exactly what the NFL and the Los Angeles market needs to get professional football off and running back here in LA

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