Sports
NFL Owners Approve Lending Rams Another $500m for SoFi Stadium Funding
DANIEL SLIM/Getty ImagesThe NFL is extending another lifeline to the Los Angeles Rams as the team continues construction on the nearly $5 billion SoFi Stadium in the city of Inglewood. According to The Athletic’s sports business reporter, Daniel Kaplan, league owners voted Tuesday to approve lending an additional $500 million to the team to complete…
DANIEL SLIM/Getty Images
The NFL is extending another lifeline to the Los Angeles Rams as the team continues construction on the nearly $5 billion SoFi Stadium in the city of Inglewood.
According to The Athletic’s sports business reporter, Daniel Kaplan, league owners voted Tuesday to approve lending an additional $500 million to the team to complete the facility.
Daniel Kaplan @KaplanSportsBiz
NFL owners today approved lending the LA Rams another $500 million for Sofi stadium development
Two years ago, owners had agreed to a record debt waiver of $2.25 billion for the stadium that will soon become the permanent home of the Los Angeles Rams and Los Angeles Chargers.
A lack of demand for personal seat licenses, which grant holders the ability to then purchase season tickets, has forced the Rams into asking for the increase in credit.
Per Sam Farmer of the Los Angeles Times:
“The additional $500 million in stadium financing is believed to be a combination of a private loan to Rams owner Stan Kroenke, and an increased debt limit on the team. Pending approval from fellow owners, Kroenke also would have more time to pay back the loan.
“… The cost of the stadium, which sits on 298 acres in Inglewood, has roughly doubled since the early projections of roughly $2.5 billion, and both the Rams and Chargers have fallen short on anticipated seat-license sales that offset construction costs. What’s more, if the NFL further increases the debt limit, Kroenke can take advantage of lower interest rates.”
Farmer noted the Chargers and Rams were expected to raise $400 million in seat licenses, yet that number is currently closer to $100 million.
SoFi Stadium broke ground in November 2016 and is scheduled to open in July 2020.
Already, the venue has booked some of the largest events in sports and pop culture with WrestleMania 37 in March 2021, Super Bowl LVI in February 2022, the College Football Playoff championship in January 2023 and the Summer Olympics in 2028. It will also serve as the site of college football’s LA Bowl, which will pit Mountain West and Pac-12 programs against each other beginning in 2020.
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