Bolts Owner Selling Stake As San Diego Scrambles

Today esteemed sports business reporter Jon Weinbach of AOL FANHOUSE has plenty of new, specific information about a proposed downtown Los Angeles stadium that could host an NFL team. Or two.

Los Angeles NFL Stadium Map

(Where the downtown L.A. Stadium would be located)

As I’ve chronicled here since April, Anschutz Entertainment Group CEO Tim Leiweke and local sports biz mogul Casey Wasserman have indicated publicly that they are interesting in building such a facility.

I suggest you read Weinbach’s entire piece but I did snip some things that caught my eye that have not been previously reported.

  • Weinbach: Recently sent architects a “request for proposal” to design the venue, which would be built on a parcel that includes a large section of the city’s existing convention center. AEG’s plan, which calls for opening the stadium by the summer of 2015, would raze the west end of the convention center and replace it with a 72,00-seat stadium featuring a retractable dome and 218 luxury suites.
  • Weinbach: David Israel, Peter Ueberroth’s chief of staff for the 1984 Summer Olympics in Los Angeles and a member of the Coliseum Commission, which oversees the historic L.A. Coliseum, USC football’s home, has seen multiple stadium efforts rise and fall in L.A. over the last 15 years, but believes AEG’s proposal has legitimate promise. “This is the closest L.A. has been since the Raiders and Rams left,” said Israel.
  • Weinbach: Alex Spanos, who became the club’s majority owner in 1984, is now 87 years old and reportedly in poor health. He and his wife now own 36 percent of the club, while each of his four children have 15 percent stakes, and they have hired Goldman Sachs to sell a minority share in the team.Representatives from Goldman have met recently with several wealthy individuals in L.A. about the Chargers’ stake, according to people familiar with the matter. (The team, founded by hotel mogul Conrad Hilton, actually came into existence as the Los Angeles Chargers and played its inaugural 1960 season at the L.A. Coliseum. Hilton moved the club to San Diego the following year.)
  • Weinbach: Mark Fabiani, who has been leading the Chargers’ efforts to develop a new stadium, told FanHouse that the Spanos family is looking to sell a stake in the team solely for “estate-planning purposes.”Greg Carey, a managing director at Goldman and its point man on stadium and sports deals, confirmed that the company is working with the Chargers but has not been retained by the NFL or AEG to find partners for a potential L.A. ownership group
  • Weinbach: Between February 1 and April 30 of every year from now through 2020, the Chargers can get out of their lease by writing a check to the city of San Diego – this year, the amount is about $26 million, and it decreases annually.
  • Of particular interest to me are the latter points regarding San Diego.

    Especially when combined with this story from Matthew T. Hall of the SAN DIEGO UNION-TRIBUNE this week:

    An aide for San Diego Mayor Jerry Sanders has released a memo defending city staff’s involvement in the late-night legislative deal that lifted a cap on redevelopment spending in downtown San Diego in October.

    The deal makes it possible for hundreds of millions of public dollars to be channeled into construction of a football stadium east of Petco Park as the Chargers would like done.

    It essentially says the legislation, which took the council by surprise in early October and was subsequently signed by Gov. Arnold Schwarzenegger despite some criticism from council members, saved the city time and money, points that had been made previously.

    The backroom deal hatched by San Diego Mayor Sanders and a local California State Assemblyman, Nathan Fletcher, provides that downtown property taxes could be available to subsidize a new stadium.

    Also, if that downtown development cap had remained in place, the city of San Diego would’ve essentially been allowed to only spend $386 million over the next decade. A downtown San Diego football stadium reportedly could cost up to $800 million.

    That cap has now been removed.

    Clearly this is a sign that there is heightened awareness on the part of the mayor that if San Diego doesn’t start taking legitimate steps to build a stadium for the Chargers, Los Angeles may now have a shot at a realistic facility that could literally steal the team away with a single swipe of a pen from the Spanos family.

    San Diego’s last-second measure could also be a signal that Leiweke and Wasserman have an informal blessing from the NFL that their stadium, if realized, could be the league’s preferred relocated Los Angeles team destination.

    5 comments

    1. Gravatarcrister
      8:25 pm on November 16th, 2010

      so where does that leave city of industry? i wonder if al davis’s head is exploding. not that any city would want to deal with big al, but i’m sure every owner just loves using los angeles as leverage against any munisipality and fanbase in order to get new digs

    2. GravatarBrooks
      8:45 pm on November 16th, 2010

      crister,

      As I’ve been saying for two years, nowhere.

    3. GravatarTheTruthHurts
      9:20 pm on November 16th, 2010

      Funny that previous ’stories’ said an NFL team wasn’t a pre-requisite for this stadium to be built in downtown LA. But…. it sure looks all the maneuvering clearly shows it is. There aren’t enough conventions or Final Fours or World Cup games to make a nearly billion dollar investment make sense. Only the year in, year out $$$$ from an NFL tenant.

    4. Gravatarjp1979
      12:38 am on November 18th, 2010

      Well this “story” has legs, and AEG and Wasserman have juice. AEG has built a strong, successful and credible reputation in the Southland with Staples, (which has to be the busiest sports entertainment venue in North America) and LA Live. Their concept is an “Events Center” which can be used as convention center space as well as a football stadium. I waiting to hear where 2022 World Cup is going to be….Because by then that’s when things will start falling into place.

    5. GravatarGraveRobber
      1:27 am on November 18th, 2010

      Don’t forget last weekend’s Pacquiao-MargaCheato fight. AEG cannot sit back and lose mega fights to Dallas. The Staples Center is too small and just doesn’t cut it anymore.