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Questions on the LA Chargers
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Brookes Owl Offline

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Post: #41
RE: Questions on the LA Chargers
(11-22-2019 12:51 PM)Wedge Wrote:  
(11-22-2019 09:31 AM)vandiver49 Wrote:  
(11-22-2019 02:29 AM)Transic_nyc Wrote:  Very well-researched article on the struggles of the Rams and Chargers in the Los Angeles market up to now. Here's the relevant point from the article:

Quote:But the Chargers have sold a weak 25,000 season tickets to date, and the Rams have sold a nascent 40,000, with the hope from both clubs that sales will improve after the stadium opens. "People are not going to spend a fortune on something they haven't seen yet," a Chargers executive says.


I know Kroenke was angling for market share, but do you think Stan has any regrets about keeping the Raiders out?

I doubt it. The shortfall in revenue that exists because of the Chargers' very weak ticket and PSL sales is more than offset by the benefit that the Rams get by being the clear #1 team in the market instead of possibly being #2 if the Raiders were in LA.

I think this is right. Raiders fans likely still outnumber Rams fans in LA. There's a good point in the article about Raiders fans in LA buying SSLs in Vegas siphoning off potential Rams fans. I don't think that's exactly correct; Raiders fans (who have tolerated a lot of losing) aren't likely to change allegiance. But their kids might so this still presents a challenge. I'm impressed (but not exactly surprised) Raiders have collected double their expected SSL revenue.

And re the Chargers' revenue shortfall, my understanding is that even though they don't have a hard SSL revenue target they have to make up their share of the stadium costs in stadium revenue if there's a SSL shortfall. The article estimates their 15% share of stadium revenue at $600MM over 20 years. The shortfall at this point leaves them forfeiting on the order of 10 years worth of stadium revenue. I know they expect that gap to close but I wonder if it'll be significantly smaller. That quote above about not spending on what they haven't seen? That's definitely whistling past the graveyard.
(This post was last modified: 11-22-2019 02:30 PM by Brookes Owl.)
11-22-2019 02:29 PM
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