After investing five years and $50M in an attempt to bring an NFL team back to L.A., AEG is "abandoning plans for its Farmers Field football stadium downtown," according to a front-page piece by Farmer & Fenno of the L.A. TIMES. AEG officials said yesterday that they are "no longer in discussions with the NFL or any teams." AEG Vice Chair and Chief Legal & Development Officer Ted Fikre said that the company also "will not seek an extension of its deal with the city, which expires April 17 and hinges on a long-term agreement with a team." Recent competing proposals in Inglewood and Carson are "backed by NFL team owners" and have "overshadowed the AEG plan," which lacked ties to an NFL team. Despite AEG dropping out, former Secretary of Homeland Security Tom Ridge and former NTSB Chair Mark Rosenker yesterday "repeated their assertions" of possible security risks associated with the Inglewood facility. They said that AEG Chair Phil Anschutz "commissioned the inquiries out of concern for the well-being of the region's residents." L.A. Mayor Eric Garcetti yesterday said, "In terms of football, we continue to stand with the fans -- we would welcome a team anywhere in our region.” Farmer & Fenno note Anschutz was "never entirely sold on the idea of building a football stadium." Former AEG President & CEO Tim Leiweke was the "driving force behind the concept" (L.A. TIMES, 3/10). The AP's Andrew Dalton notes Farmers Field had a "prime location" with "big-time boosters, a builder with an impeccable professional sports resume, even a name and sponsor -- rare for a project in the planning stages." But in the end, lack of ties to an NFL team was "all that mattered" (AP, 3/10).
SHRINKING THE PLAYING FIELD; USA TODAY's Josh Peter noted AEG's withdrawal "shrinks the field of competitors" to the Inglewood site led by Rams Owner Stan Kroenke and the Carson site led by the Raiders and Chargers. Less than two weeks ago, AEG "appeared to be jockeying for position" with its Ridge-led study. NFL Exec VP/Business Ventures Eric Grubman said, "We have been very interested in the downtown site and we have spent quite a bit of time with senior members of AEG. We would always prefer to have an excellent site in the mix, but we recognize that it is not in our control.'' SportsCorp President Marc Ganis called AEG's decision "a bit surprising" (USATODAY.com, 3/9).
THE LONGEST YARD: In L.A., Logan & Fenno noted Carson Mayor Jim Dear last month "took a call" from Fikre, who emphasized the Raiders-Chargers stadium project "wouldn't be good for business" at Carson's AEG-owned StubHub Center." It is "unclear what else, if anything, AEG would do to fight the stadium in Carson." But AEG's concerns "probably go beyond stadiums." The Inglewood plan "includes a hotel, shopping plaza and a performing arts center." With the "revitalized Forum close by, this new entertainment hub would threaten to take business away from" AEG-owned L.A. Live downtown (L.A. TIMES, 3/9).
BAY WATCH: In L.A., Lee Romney notes the NFL stadium situation in Oakland "might be the most difficult to solve." Boosters say that Oakland is "on the cusp of a development boom, given the region's fast-growing wealth and recent influx of residents and companies from across the bay." A deal to build the stadium the Raiders want, however, "involves not just one bureaucracy but three: the city and Alameda County, which co-own the land, and a joint powers authority that operates the venues." The formula "must also factor in" the A's, who want a new ballpark. A's co-Owners John Fisher and Lew Wolff "have greater wealth and development credentials than the Raiders and have signaled that they may want to steer their own development ship." The planning commission is scheduled to vote tomorrow on the city's specific plan for Coliseum site and surrounding area, and some "are optimistic" that hedge fund advisor Floyd Kephart "will deliver the goods." But Grubman suggested that the city and county "would be better off sidestepping Kephart" (
L.A. TIMES, 3/10). Meanwhile, the S.F. Chronicle's Ann Killion said the Raiders had to sign a one-year lease extension at O.co Coliseum because they had no other options, and the stadium site search "could go on for a while." Killion: "We could have a series of one-year contracts" (
"Yahoo Sports Talk Live," CSN Bay Area, 3/6). San Antonio Convention, Sports & Entertainment Facilities Dir Mike Sawaya
said that the city "still has a shot at landing" the Raiders.
In San Antonio, W. Scott Bailey noted Raiders Owner Mark Davis’ decision to team up with the Chargers in Carson “let some air out of the sails in the Alamo City,” but that deal “may never fly.”
Sawaya: “We continue to keep in touch with the Raiders organization” (
BIZJOURNALS.com, 3/9).
MOVING COSTS: In St. Louis, Brian Feldt cited data from the Missouri Department of Economic Development as showing that the state "would be out" about $20M a year, or more than $200M "in tax revenue over the course of the next decade" if the Rams leave the state (BIZJOURNALS.com, 3/9).
