AEG yesterday announced that it is seeking a six-month extension to its existing agreement with the city of L.A. for the Farmers Field project. The company's request is to allow additional time to pursue a deal with an NFL team, and to further assess and develop plans for renovations to the L.A. Convention Center and construction of a hotel at L.A. Live. AEG's deal with the city is set to expire Oct. 18 (AEG). In L.A., Vincent, Zahniser & Farmer in a front-page piece report the fate of the request "will depend in part on whether city officials believe AEG really is close to luring a team to town." AEG for months has "been studying ways of financing" an expansion of the Convention Center "without the revenue that a new stadium would generate." While AEG "insisted it remained committed to wooing a football team, the announcement Monday suggested the company was seriously considering the possibility of expanding the Convention Center complex without a stadium." Under either scenario, "if it gets the extension, AEG would still be a driving force in developing the area around its multibillion-dollar Staples Center and L.A. Live complex." AEG "did not offer details on its negotiations with the NFL but said any decisions on team relocations would happen during the next six months." NFL Exec VP/Business Ventures Eric Grubman said that the league was "guardedly optimistic about its discussions with AEG and supported the company's request for an extension of its agreement with the city." But Vincent, Zahniser & Farmer note by last spring, with negotiations between AEG and NFL team owners "apparently stalled, city officials announced they were preparing to give up on a stadium and take back control of developing the Convention Center site." Many NFL insiders "now consider a downtown stadium a long shot." What is "more likely is a stadium development in Inglewood," where Rams Owner Stan Kroenke "has purchased 60 acres near the Forum" (L.A. TIMES, 9/30).
RUNNING THE OPTION: ESPN L.A.'s Arash Markazi reported while AEG has been "pushing the Farmers Field project for four years, this six-month extension will likely be the final push for the stadium project before the plan is abandoned and another convention center expansion plan is adopted" (
ESPNLA.com, 9/29). L.A. City Council member Curren Price said that he "supports the extension so the city can 'keep all our options open' in regards to renovating" the Convention Center. AEG execs said that they "are still committed to upgrading the convention center, even if an
NFL stadium is not included in the project" (
L.A. DAILY NEWS, 9/30).
