STAN KROENKE - Stadium Rich, and Cash Poor? (1 Viewer)

[BoltBacker]

I questioned why Stan Kroenke and the Rams seemed to be making very short sighted decisions to gut a Rams team that was only about 14 months removed from a SB appearance. Seemed to me all the decisions he was making were financial, and NOT based on salary cap considerations either. A lot of folks said that was crazy talk because Kroenke had so much money. Where there's smoke sometimes there's fire....

"STAN KROENKEC, LOS ANGELES RAMS

The Athletic's Daniel Kaplan reports the Rams have requested "up to $500 million in additional NFL stadium financing" and are seeking a "doubling of the amount of time typically required to pay the money back."

Per Kaplan, that would put the Rams in the neighborhood of $900 million borrowed from the league for what has become quite a financial boondoggle for owner Stan Kroenke. “There’s a massive request for debt waivers and additional G-4 from those in LA,” a source told Kaplan. “And they’re asking to pay that over 30 years as opposed to 15 years.” Kaplan reports the Rams need gate receipts to start paying down their ballooning debt, but obviously that probably will not be happening in 2020 thanks to the COVID-19 pandemic. This, coupled with reports that the Rams have been nickel and diming ex-players on bonus money paints a picture of a franchise that is not in great financial shape after a $2-3 billion project skyrocketed to $5-$6 billion.  

SOURCE: The Athletic

May 14, 2020, 3:26 PM ET"

I have no dislike for the Rams(although I think they made a HUGE mistake moving on from Wade Phillips because the offensive line stunk) but their moves in 2020 are completely baffling to me. Seems to me for a guy with "a lot of money" Kroenke is making a pretty big ask. As someone that thought the city of St. Louis got done dirty by goodell and Kroenke it would be pretty hilarious to see this entire project go sideways and bankrupt a greedy owner. This isn't the best time to go around the league with hat in hand for a BILLION $'s since ALL the owners are in for a tough year(maybe more if a quarter of the consumers of your product are unemployed?). I've definitely heard speculation that there's no way they finish that stadium for as "little" as $6 Billion, even BEFORE the latest pandemic related delays.

 

[menobrown]

I questioned why Stan Kroenke and the Rams seemed to be making very short sighted decisions to gut a Rams team that was only about 14 months removed from a SB appearance. Seemed to me all the decisions he was making were financial, and NOT based on salary cap considerations either. A lot of folks said that was crazy talk because Kroenke had so much money. Where there's smoke sometimes there's fire....

".

I'm still going with it's crazy talk.

 

[Andy Dufresne]

You hypothesized this before and I kind of dismissed it.

I may have been wrong to do so. Something is rotten in Denmark - with the Rams franchise.

How much grift/graft is going on there with that stadium? It IS California after all...I've seen Chinatown.

 

[menobrown]

You hypothesized this before and I kind of dismissed it.

I may have been wrong to do so.

I don't think you were wrong, I think Covid-19 just happened and this is what happens to even the wealthiest people when they spend billions on an investment and instead of getting revenue it just sits there costing them more money every single day.

I don't think any moves the Rams made months ago had anything to do with Kroenke's finances, but now that might be the case.

 

[Stompin' Tom Connors]

I am biased, but have zero sympathy for Kroenke.

This was a guy who actively worked with a cabal of owners to freeze out the Raiders from being in the consideration for LA as he didn't want the in-city competition, knowing the fan base there would likely heavily gravitate towards the Raiders. The Rams have a deep history in town, too, but let's face it, LA took to the Silver and Black way harder.

Kroenke was also reportedly part of the voting block (made up by that similar cabal) that was not in favor of the Raiders move to Vegas - it's not LA, but he feared it would still draw a fanbase from SoCal.

I guess what we are seeing is all this come home to roost. The Raiders are successfully on track to launch in Vegas, while despite all the wheedling, Kroenke is unable to make his own plan work. Now I am reading rumors that, in a COVID-locked-down California, Kroenke has the gall to want to play in our brand-spanking-new Vegas stadium until local restrictions lift.

The restrictions of course place even more financial pressure on him (and Spanos) as if he is depending on gate receipts to pay down debt obligations, those won't come anytime soon from playing intended home games on the road.

I really feel for fans and players whose dreams, money, and livelihoods hand on the whims of short-sided and inept owners whose money gave them power but not necessarily foresight.

Kroenke made his bed, he can now deal with it.

 

[Long Ball Larry]

Oh noes, please don’t let anything bad happen to stan kroenke

 

[Milkman]

Oh noes, please don’t let anything bad happen to stan kroenke

Like he could possibly be just a millionaire and not a billionaire. The horror!

 

[rockaction]

It IS California after all...I've seen Chinatown.

Forget it, Jake.

This actually has all the trappings of a great bankruptcy/greed story. When they stop meeting payroll, there's always a problem. I've seen it in a bunch of businesses, and it never ends well. He may be rich, but eight billion is a lot of billion. 

 

[voiceofunreason]

An nfl team failing in LA? Never happen.

 

[Terpman22]

Don't the Rams still like, owe PLAYERS money for contracts. I mean, this guy is married to a Walmart heiress. Don't be fooled, these rich ****s just play the game this way. 

 

[rockaction]

Title is

 

[dkp993]

Don't the Rams still like, owe PLAYERS money for contracts. I mean, this guy is married to a Walmart heiress. Don't be fooled, these rich ****s just play the game this way. 

Yeah this is all just about doing it because you can not because you can’t afford it. He’s married to a woman worth 8 billion, on top of his own personal billions. He’s absolutely fine.

 

[massraider]

As a Raider fan, please inject this story into my veins like disinfectant. 

 

[massraider]

I guess what we are seeing is all this come home to roost. The Raiders are successfully on track to launch in Vegas, while despite all the wheedling, Kroenke is unable to make his own plan work. Now I am reading rumors that, in a COVID-locked-down California, Kroenke has the gall to want to play in our brand-spanking-new Vegas stadium until local restrictions lift.

[Russian Gangster Voice] Ah, yes, no problem, plenty of room. I make nice price for you [Russian Gangster Voice]

 

[DocHolliday]

[Russian Gangster Voice] Ah, yes, no problem, plenty of room. I make nice price for you [Russian Gangster Voice]

The Raiders need to really stick it to this POS.   He’s been screwing over people for years.   He needs tp get some.  

 

[Hankmoody]

Sounds like baseless speculation to me and it's just rich people doing rich people problems.  This is what they do - they take advantage of all loopholes, opportunities, tools, and resources available to them.  One might argue that in a capitalist market that's what they SHOULD do.  If it's available then take advantage of it.  That's how they got rich and it's how they stay rich.  They have teams of analysts and advisors and they know which route will lower their costs, reduce their liabilities, and maximize their return at every step of the way.

I didn't see any details, but I guarantee you if I got a 1.2% sweetheart mortgage offered to me the first thing I would do would be to try to double the loan amount and extend the payment terms another 20 years too.  Who wouldn't do that if it was available?

 

[Faust]

The NFL owners agreed to lend the Rams another $500 million for SoFi Stadium.

Same. Rams owner Stan Kroenke has been pushed to the limit by his monstrous development in Los Angeles. His request for $500 million in additional stadium financing was granted, but it's unclear if the "doubling of the amount of time typically required to pay the money back" was also passed. The COVID-19 pandemic was horrendous timing for Kroenke, although it's hard to feel too bad for someone reportedly worth $10 billion. The Rams' financial issues have even spilled over to football operations as they have been late on payments to a couple of players, including Todd Gurley. This sizable loan should get them through any short-term issues. They will, however, need Angelenos to fill the stadium when it's opened to the public.

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SOURCE: Daniel Kaplan on Twitter

May 19, 2020, 10:05 PM ET