Rams are going broke

[Wes21]

7 minutes ago, Mike2.0 said:

I’m surprised the Rams haven’t tried strong arming the Chargers into paying more money in to the stadium costs. 

In a sense this is kinda what’s wrong with stadium projects. Obviously the Rams plans look great and will potentially bring a lot of glamor, but do they need an extravagant and lavish palace? Not really. They could quite easily build a really nice stadium with top tier facilities with a roof for much less. All the Rams have done here is go over the top on the design for “look at us” reasons. Serves them right. The league should make their owner pay up or lose the franchise.

First, the LA market is very fickle and you can't just give them something basic and expect them to show up.  Second, you missed the part where the Rams aren't just building a stadium for themselves.  It was part of what they sold to the other owners for "allowing" the Rams to leave.  The LA stadium and campus is going to be the most extravagant in the league, and quite possibly the entire world.  The NFL is literally supposed to move its media operations into the LA Rams campus.

https://www.sportsvideo.org/2018/03/27/nfl-media-will-move-operations-to-new-rams-chargers-la-stadium-in-2021/

[Peon Awesome]

3 hours ago, Basbear said:

Stan can not spend some of his billions?? I dont understand how this is common now. Watch Tepper do some of this same BS, I already had enough with the SC vs NC crap he pulled. 

I think you may be misunderstanding the situation. This isn't public funding. Stan Kroenke is effectively paying for the stadium. He's already paid like $2+ billion straight out of his own pocket and now they're borrowing additional money from the NFL that they'll pay back with the team's revenue to make up for the unexpected rising cost of the stadium. He may be a billionaire but there's only so much liquid cash he has on hand. With such an expensive project you actually have to commend Kroenke for not seeking a bail out from taxpayers.

[Jim Harbaugh]

So the Rams are in the same position as every other corporation in the USA right now.

Surprising.

[Jim Harbaugh]

13 minutes ago, Peon Awesome said:

I think you may be misunderstanding the situation. This isn't public funding. Stan Kroenke is effectively paying for the stadium. He's already paid like $2+ billion straight out of his own pocket and now they're borrowing additional money from the NFL that they'll pay back with the team's revenue to make up for the unexpected rising cost of the stadium. He may be a billionaire but there's only so much liquid cash he has on hand. With such an expensive project you actually have to commend Kroenke for not seeking a bail out from taxpayers.

Bingo.

Remember, Los Angeles has never had an NFL stadium, despite hosting the Rams and Raiders for decades. This is a first.

[RASTAN66]

Brings back fond memories of the Charlotte City Council caving to The Big Cat's demands after he threatened to move the Panthers to L.A......LOL. 

Charlotte is nirvana from an operating perspective, moving to L.A. was a complete bluff and the dolts on the council fell for it.

[Wes21]

7 hours ago, Jim Harbaugh said:

Bingo.

Remember, Los Angeles has never had an NFL stadium, despite hosting the Rams and Raiders for decades. This is a first.

Its crazy to think about, so I'm quoting you for emphasis.

[DeAngelo Beason]

The NFL bringing football back to LA has been a complete and total disaster, and I love it.

[1of10Charnatives]

11 hours ago, Wes21 said:

People - "I want a powerful businessman as our owner!"

Also People - "Holy poo, this is what its like!  I take it back, I take it back!" 

LOL

95% of the People - "I want a powerful businessman as our owner!"

5% of the population that actually pays attention to business news and the parts of political news that aren't people shouting at each other on cable:

"Be careful what you wish for."

95%: "Shut up nerd! You just hate sports. Go watch Star Trek reruns!"

later...

95% "Holy poo, this is what it's like? I take it back, I take it back!"

5% "Told you so."

[Khyber53]

13 hours ago, bababoey said:

New uniform expense 

New uniforms might have been a revenue push effort. Get them out there quick, get the cash rolling in.

[Khyber53]

13 hours ago, LinvilleGorge said:

Wealthy people really don't like to spend their money. They need that for dick measuring purposes. Much better to strong arm municipalities to spend YOUR money.

And to borrow money at criminally low interest rates to cover up for bad business practices. That's what is causing so many of the economic problems from the Covid-19 break... lot of big corporations aren't able to cover their debt payments with severely reduced revenues... few had any cash reserves on the books and had been getting by paying the minimums. 

[Ja Rhule]

3 minutes ago, Khyber53 said:

And to borrow money at criminally low interest rates to cover up for bad business practices. That's what is causing so many of the economic problems from the Covid-19 break... lot of big corporations aren't able to cover their debt payments with severely reduced revenues... few had any cash reserves on the books and had been getting by paying the minimums. 

Banks were forced to have substantial liquidity on hand after 2008 and it has been magical.  I believe all big companies should have substantial liquidity on hand.  Banks now are being smart and refusing to give their money to companies that are in debt with no liquidity.

[Snake]

Well Jerry Jones is getting rich building that stadium. The NFL wanted LA bad so they should poney up the money. 

[thefuzz]

1 hour ago, Ja Rhule said:

Banks were forced to have substantial liquidity on hand after 2008 and it has been magical.  I believe all big companies should have substantial liquidity on hand.  Banks now are being smart and refusing to give their money to companies that are in debt with no liquidity.

There has been very little reason to have liquidity....until now.

I learned my lesson the HARD way in 06'....keep expenses low, and stay liquid.  These businesses (and the US and it's citizens in general) don't operate that way.  Shame.

I have no sympathy.

[thefuzz]

P.S. this is a cautionary tale to David Tepper, and I hope he's paying attention.

 

P.S.S. he probably isn't.