Los Angeles Rams News & Rumors

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.

11:37am: In a separate piece, La Canfora reports that former 49ers owner Eddie DeBartolo, Jr. is in discussions with Raiders owner Mark Davis about joining Davis’ ownership group. Davis, who has been actively seeking minority partners that would inject additional capital into his franchise in advance of the team’s potential move to LA, has previously been very reluctant to yield any controlling interest in the club to others, but given DeBartolo’s excellent reputation around the league, and given that the Carson project still needs to procure more support from other league owners to move forward, Davis may be willing to make an exception. Nothing is imminent at this time, but this is still a development worth keeping an eye on.

10:59am: We heard earlier this week that although the Carson stadium proposal put forth by the Chargers and Raiders continues to gain momentum– particularly now that Disney chairman and CEO Bob Iger has agreed to become chairman of the project–there are still a number of high-profile owners who back the Inglewood project, which would see Rams owner Stan Kroenke move his club to Los Angeles.

According to Jason La Canfora of CBS Sports, those high-profile holdouts include Jerry Jones of the Cowboys, Robert Kraft of the Patriots, Dan Snyder of Washington, Jeffrey Lurie of the Eagles, Woody Johnson of the Jets, Ziggy Wilf of the Vikings, and Steve Biscotti of the Ravens. Bengals owner Mike Brown, meanwhile, frequently abstains from voting and would therefore be counted as a “nay” vote for either project. The Bills, Falcons, and 49ers apparently hold the “swing votes.”

As La Canfora writes, a number of owners were concerned that the Spanos and Davis families’ lack of prior experience in deals of this magnitude would be a major blow to the Carson project. However, the inclusion of Iger, who would “oversee the design, construction and development of the stadium, as well as set the vision for the marketing, branding and in-game experience,” has largely assuaged that concern. But the Carson project still does not have quite enough support from other owners to move forward. Either bid would need the approval of 24 owners, and La Canfora says that while the Carson bid has grown increasingly viable with the addition of Iger, the Kroenke supporters could still quash it.

Nonetheless, Iger’s decision to come aboard at this point in the process could signal his belief that the Carson project will obtain the ownership support it needs. While the Carson team will need at least one of the current Kroenke backers to change his vote, it appears increasingly likely that will happen.

The Chargers and Raiders have reached an agreement for Disney chairman and CEO Bob Iger to become the chairman of their bid to build a stadium in Carson, California, reports Jason La Canfora of CBSSports.com. The Carson stadium group has since confirmed the news, officially announcing it in a press release.

According to La Canfora, the move is a potential game-changer, given Iger’s “world-renowned reputation” in the entertainment business, and his expertise on the Los Angeles market. Iger will oversee all the major initiatives on the project, including stadium design, naming rights, and fan experience, in addition to guiding the construction and operation of the new building.

“We now have the kind of leadership and expertise that should calm any concerns about any NFL teams going into L.A. and getting off on the right foot and pursuing the right course,” said Carson Holdings executive Carmen Policy, per Sam Farmer of the Los Angeles Times. “And certainly if you’re going to do two teams it really lends a layer of talent and experience, plus unbelievable know-how to the whole effort. … Who could we get better to guarantee fan experience than the man who runs the happiest place on earth?”

Of course, before the Carson project is able to move forward with Iger at the helm, it will have to get approval from the NFL. Prior to this development, the Carson stadium plan already had about 16-20 votes of support, by some owner’s estimates, says La Canfora. It would require the support of 24 of the league’s 32 owners in order to proceed.

Several high-profile team owners are believed to be leaning toward Stan Kroenke‘s Inglewood project, believing that the location may be stronger and expressing confidence in Kroenke’s “exhaustive real estate experience.” However, given Iger’s inclusion in the Carson plan, there’s a chance some of those owners re-evaluate their preference. It’s also worth noting, as Farmer points out, that Iger has a working relationship with many NFL owners, as well as commissioner Roger Goodell.

With meetings taking place this week on Los Angeles relocation, there are plenty of other items to round up related to the Rams, Chargers, Raiders, and L.A. Let’s dive in….

• There’s significant tension between NFL owners over possible Los Angeles relocation, according to Jason Cole of Bleacher Report (video link). The owners of the Raiders and the Chargers believe that the league is pushing for a relocation of the Rams to Inglewood. Meanwhile, Cole says that the Raiders are keeping their possible new L.A. investor under wraps because that individual would be embarrassed if the Raiders are ultimately unsuccessful in their bid to move.
• Kroenke’s proposed Inglewood stadium is facing scrutiny from the Federal Aviation Administration, which has released a preliminary report suggesting that the venue is “presumed to be a hazard to air navigation.” Nathan Fenno of the Los Angeles Times has the details. I wouldn’t expect the FAA’s complaint to be a major deterrent if the NFL decides to move forward with the Inglewood project, but it’s another roadblock to overcome.
• As Brent Schrotenboer of USA Today Sports outlines, despite the fact that Los Angeles is a major market, there’s some skepticism in certain circles that the city could support two NFL franchises after getting by without a single team for so long.