LA Stadium seeking more money

[AlexGreen#20]

4 minutes ago, LeotheLion said:

Hosting those events is a competitive process. Bidding for those with poor facilities will almost certainly get rejected. Generally for Olympics a brand-new stadium is built for opening/closing ceremonies (this is usually a disaster for the countries post-games). Rio's games had a $500 million renovation on the existing building.

Yeah, cause most other countries don't have 50 thousand seat stadiums. 

This is America. We have them. 

[Oregon Ducks]

8 minutes ago, AlexGreen#20 said:

Yeah, cause most other countries don't have 50 thousand seat stadiums. 

This is America. We have them. 

Lol that’s just not true

[AlexGreen#20]

40 minutes ago, Oregon Ducks said:

Lol that’s just not true

Correction: We have 50,000 seat stadiums less than 30 years old.

Look at the biggest stadiums in the non European countries.

[Shanedorf]

When you look at the Olympic bids, they need a bevy of venues to host all the events.

Tokyo bid included 42 venues to cover 28 summer sports (there will be 5 more sports added for future Olympics)

https://www.olympicchannel.com/en/stories/news/detail/need-to-know-guide-tokyo-2020-olympic-venues/

LA has multiple indoor and outdoor venues, the LA SoFi stadium would be the main one - but they'll use many others as well
LA Memorial Coliseum, Rose Bowl in Pasadena, LA Convention Center, Staples Center etc. Plus UCLA track and maybe The Big A ? 

Having (1) 50-80k stadium won't win any Olympic bids and many of the bids are now multi-city because one town just can't handle it all

[LeotheLion]

47 minutes ago, Shanedorf said:

Having (1) 50-80k stadium won't win any Olympic bids and many of the bids are now multi-city because one town just can't handle it all

This is absolutely true. My point wasn't that 1 stadium secures the Olympics but that 1 older/rundown (without a plan for major renovations) stadium penciled in as the site for opening ceremonies would lose the bid.

LA could have potentially gotten the bid without SoFi but I would suspect one of those venues would have needed major renovations. Especially if they tried to reuse the Coliseum. 

Edited May 18, 2020 by LeotheLion

[Hunter2_1]

On 15/05/2020 at 6:05 PM, RaidersAreOne said:

Whaaaaaaaaat??? $5-6 BILLION? The Vegas stadium is rumored to cost around $2 billion and it's uber state of the art. How in the world is this stadium going to cost around 3x as much? Simply because of being in LA? 

 

6BN for a stadium that will mostly house temporary fans. Bargain.

[Hunter2_1]

On 15/05/2020 at 8:29 PM, soflbillsfan said:

I honestly do not get the point of spending stupid money on a stadium. I have one purpose going to a game and that is to watch football and have a beer with a Burger or Hot dog. Big screen is a plus just for those who cant see. Give me a urinal or a toilet, a concession stand, and a seat. Going all out to out do other stadiums is just a pissing contest. If you want frills, shops and other restaurants go to a strip mall or a Sports bar. Its an NFL stadium and you can host other things but you do not need to drop billions of dollars on a stadium. It just means the fans will end up suffering in the long run by paying more for tickets to make up for this nonsense.

Same, but this is 2020.

Don't forget people go places now just to show they have over Instagram.

 

#mostexpensivestadiumintheworld    *duck face*

Edited May 19, 2020 by Hunter2_1

[Oregon Ducks]

Lol the stadium creators want to make it more than a sporting venue - they want to make it a destination for all.

[soflbillsfan]

Olympics arent dictated on one stadium that is just silly talk. How many countries spend the billions of dollars to host an olympics or host a world cup. Yes it is splashy for that time but afterwards they go on while that money they sunk in to stadiums just deteriorates and never seen again. So in 20 years the best that can happen is LA can house a few olympic events and a couple of World Cup games but thats it. You will not be recouping that much to say that it was worth spending $6 billion when the flashy new stadium like At&t in Dallas or Mercedes in Atlanta will likely get some of those events as well and the cost was only 1-1.5 billion. So you can not justify to anyone that LA is well worth the 4-6 times in cost then those other facilities because of hosting an olympic even or world cup game. They could have slapped together a stadium for 1-2 billion like the rest and still manage to get those events because it is LA and that will attract International people by wanting some stuff there. So 16 NFL games a year (15 if chargers play rams), a College Football Game once a year maybe 2 depending on the situation, and some concerts that is what $6 billion is going to get you. Thats what Metlife Stadium gets every year and guess what it only cost 1.6 billion to have 2 NFL teams there, a bowl game, some concerts and likely be a spot for olympics and world cup too. 

[SaveOurSonics]

22 hours ago, AlexGreen#20 said:

Yeah, cause most other countries don't have 50 thousand seat stadiums. 

This is America. We have them. 

[Shanedorf]

27 minutes ago, soflbillsfan said:

So in 20 years the best that can happen is LA can house a few olympic events and a couple of World Cup games but thats it.

This wouldn't be an accurate representation
They are building the stadium as the anchor tenant of an entertainment district that will host sporting events, concerts and a multitude of gatherings both large and small - including conventions, the draft, the combine and others year round.

Many NFL teams have or are currently building entertainment districts because it allows them to generate revenue year round AND because they get to keep a larger portion of that local revenue vs other sources like TV deals. In years past, the TV $$ vastly outweighed the local money, but local money is catching up and becoming an even larger part of the overall pie

Additionally, the NFL Network is building their west coast TV studio and offices there - those too are part of the entertainment district that will help offset the massive investment Kroenke is making at SoFi.  The cost over- runs are a bummer, but painting this as a rarely used stadium is just not accurate

They're building a world class entertainment district... in the entertainment capital of the world.
 

[Leoric]

4 hours ago, soflbillsfan said:

Olympics arent dictated on one stadium that is just silly talk. How many countries spend the billions of dollars to host an olympics or host a world cup. Yes it is splashy for that time but afterwards they go on while that money they sunk in to stadiums just deteriorates and never seen again. So in 20 years the best that can happen is LA can house a few olympic events and a couple of World Cup games but thats it. You will not be recouping that much to say that it was worth spending $6 billion when the flashy new stadium like At&t in Dallas or Mercedes in Atlanta will likely get some of those events as well and the cost was only 1-1.5 billion. So you can not justify to anyone that LA is well worth the 4-6 times in cost then those other facilities because of hosting an olympic even or world cup game. They could have slapped together a stadium for 1-2 billion like the rest and still manage to get those events because it is LA and that will attract International people by wanting some stuff there. So 16 NFL games a year (15 if chargers play rams), a College Football Game once a year maybe 2 depending on the situation, and some concerts that is what $6 billion is going to get you. Thats what Metlife Stadium gets every year and guess what it only cost 1.6 billion to have 2 NFL teams there, a bowl game, some concerts and likely be a spot for olympics and world cup too. 

I didn’t pay for the stadium and it wasn’t California tax dollars that paid for it. If we get to host the olympics and have that kind of spectacle in Los Angeles will be amazing and totally worth the NFL’s and Kroenke’s money to me. It’s been since 84 and I was too young to really enjoy the Olympics here. I couldn’t be this excited unless we were getting a real NFL team too. 

[Superman(DH23)]

On 5/16/2020 at 9:35 AM, LeotheLion said:

I'm not just equating great to dollars. That's just the easiest to judge. The stadium will host in the next 8 years the Superbowl, world cup games, and the Olympic opening ceremony. That's 3 of the world's biggest events. 

You are saying the experience of going to Lambeau will be better. I'm not arguing that. LAs stadium will likely be much more corporate and thus not for everyone. I'm simply saying the stadium itself is clearly better. Unless you think Lambeau can host those 3 events... 

 

Idk if you're being deliberately obtuse, or do you dont understand basic economics.  Let me give you a couple real world examples.  #1: How much does gas cost in CA these days?  I live on the Iowa/IL border and its interesting bc with a just a river separating.  Gas costs are different in each state.  Why is that?  Well bc one states regulations require gas to be at a higher cost just to break even, and the other state is less regulated.  How about a pack of smokes?  Same deal.  Why does it cost so much more than say NRG in houston? @ET80. Well bc Texas is a much less regulated state than the MOST regulated state in the country.  Regulations cost money.  Just trying to use cost to justify it as "the nicest stadium in the world"  doesnt pass the smell test.  You can pay $100 or a $1000 for the same thing, that doesnt mean the $1000 version is any nicer.  It just means it cost more.

[ET80]

On 5/16/2020 at 9:35 AM, LeotheLion said:

I'm not just equating great to dollars. That's just the easiest to judge. The stadium will host in the next 8 years the Superbowl, world cup games, and the Olympic opening ceremony. That's 3 of the world's biggest events. 

Let's be fair here as well - hosting these events are not exactly the biggest indicator either. New Orleans is a regular in the Super Bowl rotation, and the Mercedes Benz Superdome isn't exactly the greatest venue in sports - hell, it barely survived Hurricane Katrina in 2005. 

The main reason these cities are picked for these events are the cities, not the venues. New Orleans will always be in the rotation, but not because of its stadium. The league picks New Orleans because it's an amazingly fun city to party in, probably the best food and drink you'll find in all of the United States. It's a party, and that's what the NFL is looking for with its biggest game, a party for everyone going (except for the players, that is).

Los Angeles and Las Vegas are going to join this rotation - simply because LA and Vegas are fun cities to be in.

[LeotheLion]

8 minutes ago, Superman(DH23) said:

Idk if you're being deliberately obtuse, or do you dont understand basic economics. 

Let's not be rude. If you want to discuss the matter then I'm open but I would appreciate you not belittle my intelligence. 

17 minutes ago, Superman(DH23) said:

Why does it cost so much more than say NRG in houston? @ET80. Well bc Texas is a much less regulated state than the MOST regulated state in the country. 

No. It's because NRG was built in 2002. AT&T is a better example which was built in 2009 and was state of the art when built at $1.3B. But 11 years is a long time and there are advancements in technology and construction. An example: The videoboard at AT&T was revolutionary in 2009. The videoboard at SoFi is going to be twice as long.

21 minutes ago, Superman(DH23) said:

Regulations cost money.  Just trying to use cost to justify it as "the nicest stadium in the world"  doesnt pass the smell test.  You can pay $100 or a $1000 for the same thing, that doesnt mean the $1000 version is any nicer.  It just means it cost more.

Levi's Stadium was built in CA in 2014. Cost $1.3B. If CA is so heavily regulated why didn't that cost more? You might have a point if the cost of SoFi was going to be fractionally more than stadiums in other states. It isn't. It is so much more expensive that arguing that CA is more expensive doesn't come close to reconciling the variance. Even the budgeted amount of the stadium before over-runs was going to be 40% more than Allegiant. Unless you actually believe that if SoFi stadium would cost 50% less in other states then the argument or regulations holds no water.

So how would you propose you judge how nice the stadium is? From a finance perspective the 3 acceptable valuations methods are cost, market, and income. We cannot use cost because it doesn't pass your smell test. We cannot use market because 1.) CA is too expensive and more importantly 2.) stadiums are too unique to get comps. And we don't have the financial data to know projected income figures for it. The best approach is cost.