SBD/Issue 86/Franchises

NFL Franchise Notes: Asking Price For Rams Drops Below $800M

 
SPORTSBUSINESS JOURNAL's Daniel Kaplan cites sources as saying that the price Rams co-owners Chip Rosenbloom and Lucia Rodriguez "would accept for the team has dropped" into the mid- to high-$700M range, "underscoring the challenges even NFL teams have in finding buyers in this economy." Rosenbloom and Rodriguez in June hired Goldman Sachs to look into a potential sale, and sources indicated that the investment bank "quickly dropped" its sale estimate from $900M to about $850M. Kaplan notes "several factors are contributing to the falling price." Beyond the economy and the team's "poor play (3-29 over the past two seasons), Stan Kroenke's" 40% stake and his "right of first refusal for majority control is an issue" (SPORTSBUSINESS JOURNAL, 1/18 issue).

GO WITH THE FLOW: Steelers President Art Rooney II said the possibility of an uncapped '10 season "creates some uncertainty about planning for the future." Rooney: "There are changes we've got to deal with and be prepared to adjust to. It's just one of those factors that's out there that the next couple of years are going to be something you wouldn't describe as business as usual." Rooney said he expects the NFL to have a salary cap after next season, and added the uncapped season will "kind of be a one-year situation that we'll get through." He added, "We've got to find the right system and the right adjustments going forward to continue being successful" (Pittsburgh TRIBUNE-REVIEW, 1/16).

SPREADING THE FIELD: Chargers Exec VP & COO Jim Steeg noted that 26% of the team's season-ticket holders come "from outside San Diego County," and outlined a "number of ways the Chargers have promoted themselves" in Southwest Riverside County. The team continues to air games on the area's KATY-FM, and Station Manager Kevin Watson "estimates his station's ratings for Chargers games 'quadruples' the average Sunday rating and delivers substantial revenue for the classic-rock station." In addition, of the "eight or so retail outlets that sell NFL apparel in Southwest County, only two offer jerseys other than those of the Chargers" (Landon Negri, NORTH COUNTY TIMES, 1/17).

REACHING THE GOAL LINE? Vikings Owner Zygi Wilf said that he "expects the club to break even financially this year" (Minneapolis STAR TRIBUNE, 1/17).

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