Was cost of relocating to L.A. worth it for Rams and Chargers? Check out the latest franchise valuations
On the same day NFL owners approved the Rams and Chargers relocations to Los Angeles, they added an expensive amendment to their blessing.
“You’re free to leave St. Louis and San Diego for Los Angeles,” the NFL told them. “But it’s going to cost you.”
Big time, as it turned out.
Interestingly, nary an eyebrow was raised by Rams owner Stan Kroenke or Chargers owner Dean Spanos when their colleagues informed them they’d have to fork over $550 million upfront or, should they opt to pay the fee over 10 years, a figure representing the expected increase in franchise value upon moving into the second-biggest market in the country.
Neither Rams owner Stan Kroenke nor Chargers owner Dean Spanos raised an eyebrow when fellow NFL owners informed them they’d have to fork over $550 million up front — or more if they opted to pay over 10 years — for the right to move to their teams to the second-biggest market in the country.
Kroenke and Spanos didn’t blink because they knew the financial power of playing in Los Angeles was far stronger than the hefty relocation fee they’d have to pay.
On Wednesday we found out just how powerful it is to call Los Angeles home.
The Rams left St. Louis for L.A. a little more than a year ago, but over those 12 months the value of the franchise has doubled based on Forbes’ annual rankings of the world’s most valuable sports franchises.
After falling outside the top 50 in the rankings last year with a valuation of $1.4 billion, the Rams soared all the way to No. 12 on the 2017 list at $2.9 billion.
And while the Chargers haven’t played a single down in Los Angeles yet — remember, they opted to delay moving to L.A. by one year in order to give a […]