Chargers, NFL offer to pay $650 million of $1 billion stadium

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The Chargers want to stay in San Diego, in a new stadium that will cost $1 billion. And they want a hotel tax to provide $350 million of that.

According to the San Diego Union-Tribune, the Chargers’ plan for a new stadium would entail the team and the NFL paying $650 million, and a 4 percent increase in the hotel tax to provide the other $350 million for the total $1 billion cost of a new stadium.

Under the proposal, the Chargers would keep game-day revenue and sign a lease of at least 30 years, while San Diego would get revenues from other events that take place at the stadium.

By the standards of new NFL stadiums, that’s a fairly good deal for the community: Usually it’s the taxpayers who foot the bulk of the bill, whereas in this case the taxpayers (out-of-town taxpayers visiting and staying in hotels) will only pay about one-third of the costs.

However, there seems to be a strong sentiment in San Diego that the taxpayers shouldn’t pay anything. And if San Diego doesn’t agree with the $350 million hotel tax hike, this plan is going nowhere. In that scenario the Chargers would be going somewhere, likely north to share a stadium with the Rams in Los Angeles.

79 responses to “Chargers, NFL offer to pay $650 million of $1 billion stadium

  1. I think it’s a great deal. If the city don’t get on board with this then it proves they never intended to try and work out a deal. Charging the vacationers is the perfect remedy. No harm no foul. New stadium. Bam. It won’t be that easy tho with the majority of voters(get out there Latinos)being conservatives in flip flops sipping ice lattes from there sunset cliffs patios.

  2. A billion dollars. Get a non-union company to build it and it will be done for half the cost and in half the time.

  3. It’s an excellent deal. If the residents of San Diego County don’t want to pay for a portion of a stadium via a tax that won’t impact the vast majority of them, they don’t deserve a team.

  4. Goodell should chip in his entire yearly salary. That will knock over 10 percent off the 350 mil

  5. If San Diego residents do not pass this referendum they truly do not want NFL football in their community. That would be a shame.
    $350 mil in increased hotel tax is a no brainer.
    Visitors will pay the tab, not the local residents.

  6. Chargers fans should say: “Heck, we’ll pay 5% if you dump current ownership. If you don’t, not one penny.”

  7. While that deal is not going to be as simple as that, communities have to decide if they want to be in business with the NFL. For the city to be able to keep revenue from other events is a pretty big deal.

  8. San Diego would be stupid to pass on the deal. They gain revenue from the stadium and lose a great deal if the team moves north.

  9. I live in San Diego County and go to Charger games (when they play the Seahawks) at the current stadium. Every time I go it seems like there are more away fans then Charger fans due to this being a military city and a vacation destination city. There are not too many born and raised San Diegans who are Charger fans. So having the vacationers who come visit pay the taxes would be great for the smallest fan base in the NFL…

  10. A 30 year lease on a stadium that will be outdated in 20 years. Taxpayers are not going to improve any tax increase regardless if it’s disguised as a tourist tax. Residents in and around San Diego rent rooms cars boats and such also. They are in no way going to vote for a 4% increase to do so.

  11. No way Zygi would have gone for that. Most he had to come up with was about $100M. And that’s mostly coming from “stadium building licenses”. Not even his own pocket. I guess Californians are just smarter than Minnesotans.

  12. They should ask themselves what projected revenue from non-NFL events will be over that 30 year period before they poo-poo it. That could end up very profitable for the city of San Diego.

  13. Carl Gerbschmidt says:
    Mar 30, 2016 9:49 AM

    No way Zygi would have gone for that. Most he had to come up with was about $100M. And that’s mostly coming from “stadium building licenses”. Not even his own pocket. I guess Californians are just smarter than Minnesotans.
    __________

    I’m not sure where you’re getting your numbers, but the public component for Minnesota’s stadium was $458 million. The total cost is about $1.1 billion, so I don’t think that quite adds up.

  14. Why is it that they need tax money again? Because the NFL and the NFL team owner can’t afford it?
    How about $650 million in improvements to their current stadium and no taxes?

  15. do not get fooled San Diego.

    the 49ers were supposed to pay $800 million of new stadium.

    right now they have paid ZERO $, and the city of Santa Clara is on the hook for it.

  16. So what happens when vacationers hear of the increased hotel tax and decide to vacation elsewhere? Who will foot the bill when projected revenue falls short?
    Put the tax on liquor and cigarettes, that is a guaranteed source of revenue.

  17. City of San Diego leaders and employees would throw a fit if there was a new $350 Million tax that didn’t go into their pockets.

  18. A billion dollars?

    NRG Stadium in Houston was the first ever retractable roof football stadium and it only cost $350 million…. And it’s a gorgeous stadium that is about to host it’s second Final Four this week and second Superbowl next year.

    You don’t need to spend $1B….. It’s a billionaires game of ‘Keeping up with the Joneses’. And I think we all know who the ‘Jones” is in that saying.

  19. Don’t do it SD. No city in the US should pay for a stadium, anymore than tax payers should pay for your neighbor Bob to setup a taco stand in your neighborhood.

    Give the Chargers/NFL a loan of $350m and demand 100% of stadium proceeds go to the city until the loan amount is paid in full back to the tax payers.

  20. However it happens I hope it works out. San Diego is a great city and deserves an NFL team.

  21. OMG what a ripoff. you dont need $1B to build a stadium. Why did the PGH stadium cost $270M? Please dont tell me the cost has increased 4 times. We are in a near recession. The price should be less. I agree SD is more expensive but not NY expensive. What a crime. And speaking of NY. Those unions sure did a number there. 1.8B and there are no bathrooms in the suites!!!!! HAHAHAHAHA…

  22. Wow, what a concept. You want more revenue, San Diego, just raise room taxes 4%. Now why didn’t the mayor or city council think of that already. Those guys in the NFL are such geniuses.

    And who pays for the road improvements and extra cops on game day and trash pickup etc. And I’m sure the San Diego school system is fully funded and doesn’t need improvement for the next 30 years.

    I’m all for municipal investments for the good of the city. I just hate the NFL coming across as through they are the saviors of the city and telling the city what to do. A little bit of humility would be nice.

  23. If the Chargers move to any other city they owe the NFL $500 Million ~ the Chargers should SAVE themselves $150Mil and kick-in $350Mil without raising taxes one nickel. Sure it’s easy to propose a tax hike, but how about showing the city that the Chargers WANT to stay and won’t screw the taxpayers? If they just can’t man-up and do that then spread the tax over restaurants, bars, liquor stores and airline tickets into SD with a 0.5% tax?

  24. Let them go to LA and be the “second” team in the Rams stadium. If you think San Diego did not give them the respect (attendance) they deserve see how being the 2nd choice plays in a new town. There are more Raiders fans in Los Angeles than Chargers fans.

  25. The cost of new stadiums has gotten completely out of hand. UoP Stadium in Phoenix, voted best playing surface in the league by players multiple years, and a top 10 venue in the country, was finished for the 2006 season for $455m, and that includes a retractable roof AND retractable natural grass field. It has the luxury boxes that owners “need to compete”, and every other amenity a fan could possibly want. Now a decade later, every single stadium proposal you see is $1b+, with Silent Stan’s palace in IngleWatts cresting $2b.

    While the SD offer sounds like a “good deal”, guess who is going to pay through the nose if it happens? The fans. Ticket prices are guaranteed to skyrocket, and the dreaded PSL fee will probably come along with it. Ask a Niner fan how that’s going over in Santa Clara.

    Here’s the bottom line: inflation in the NFL is outpacing economic inflation by orders of magnitude. More and more fans are getting priced out every day. Where does it all end? How many mansions and Escalades and homes for relatives do the players need? How many $billions does the league and its owners need to earn before they slow down? I think the league NEEDS Joe Sixpack and his family of four in the stands, not just a bunch of Facebook “executives” sipping craft beers and eating $75 pizzas in the club area of the stadium. But what do I know?

  26. Welfare for billionaires. Spanos family should be paying more. Why should the Spanos’ be the beneficiary of a long term asset now partly paid by the NFL and partly paid by tourists to San Diego.
    Kraft, Ross, Wilf, Blank paid or are paying for their own stadia. Why is there such generosity for the Spanos family?
    Welfare for billionaires…

  27. Perhaps the NFL/Chargers should pony up the complete cost. The city/county should then guarantee to pay them ALL the tax money the team causes to be generated by the presence of the team. It would be interesting to see the analysis of the tax revenue generated by the Chargers presence in the area. I bet it exceeds by far the $350MM that is wanted for the stadium. The state should kick in a bit also, I would wager that with all of the state taxes, the total tax bill of the team and employees exceeds $75 MM per year.

  28. Does it really take a billion dollars to build a new facility, especially in the most stable, warm-weather climate of any NFL team?

    The Rams are playing the next 3 seasons in a 90-year-old, open-air stadium.

    Build the best $650 million stadium you can, ask for no taxpayer money, and be heroes in your local market for decades to come.

  29. The Chargers and the NFL just officially committed $650 Million. They could build a very very nice stadium for $650 M, why not just do that and own it outright? There’s no need for a $1B stadium for just one team.
    If the city does decide to tax the hotels, it will hurt tourism slightly, but I hope they retain a few rights for the stadium. Naming rights and the right to host other events there in the off season would probably be worth half of that $350M over 10 or 15 years. No doubt that the Chargers hope to retain those rights for themselves.

  30. Grew up in San Diego and we have alot of Millionaires here that would be a drop in the bucket to finance the rest of that bill.

    Wish us tax payers did not have to deal with this.

  31. Here is an idea…..if they need a new stadium how about the Chargers’ team owner pays for it…..just like Bob Kraft did for the Patriots’ stadium?

  32. $1 billion for a Cali stadium, ha! Add another half a billion on to it at least. Don’t forget all the millions needed for upkeep which all these cities seem to get stuck with the bill. Now what happens when San Diego needs money for something more important?

  33. Wow. What an operation the NFL is running. All part of the plan with the King of California ( Stan ) . How much is the NFL putting into this deal ? They left STL high and dry with nothing and offered no help. Why is Dean all of the sudden willing to put in more money than he ever has ? Because the NFL is putting in way more than it ever has. They want Stan by himself in LA. Lets see how the Raiders get taken care of next. The NFL doesn’t want cousin Eddie in LA. I feel for the fans in SD and Oakland. They just want their team and end the BS that comes along with the NFL.

  34. rcali says:
    Mar 30, 2016 11:04 AM
    $1 billion for a Cali stadium, ha! Add another half a billion on to it at least. Don’t forget all the millions needed for upkeep which all these cities seem to get stuck with the bill. Now what happens when San Diego needs money for something more important?

    The city makes money and more than enough for upkeep….They even get to tax those hired to do the upkeep. This is a very good deal….The city owns it and someone else pays for a chunk of it. Please let me know of other public buildings where someone else pays for most or any of the construction

  35. corporatemediaprostitute says:
    Mar 30, 2016 9:27 AM
    It’s an excellent deal. If the residents of San Diego County don’t want to pay for a portion of a stadium via a tax that won’t impact the vast majority of them, they don’t deserve a team.

    ————————

    You need to look up to where the money actually goes. The NFL sucks out all the revenue with very little of it going back to the city. San Diego would be better off spending that money on an engineering firm or something that brings in good paying jobs to its citizens that spend their money locally. Not a NFL owner.

  36. I visit my son twice a year in San Diego and hotels aren’t cheap there. Even shoddy ones get 100 bucks per night. So when I pay 150 per night for 5 nights I am adding 30 bucks per visit or 60 bucks per year so a billionaire owner can have a new stadium for his team? I hope they vote it down, let the team owners pay for their overpriced stadiums.

  37. I live in Orange County and vacation in San Diego a few times a year with my family. Why should I foot the bill for a new stadium and not the Charger fans who actually live in San Diego? If hotel prices go up, they’re already high during vacation season we may look elsewhere, Scottsdale, Palm Desert, etc..

  38. Any other business that asks for a 35% public investment in a privately owned business would expect to get an “absolutely not” response. Those that get a yes would be subjected to significant government regulation, limitations on charges to the public for its use, and onerous financial and regulatory reporting. In effect, the joint venture would be treated as a joint venture, not as one man’s plaything.

  39. I love the hotel tax idea. It is the ultimate switcheroo.

    We hit you up for $350 million but you get to charge tourists, not taxpayers.

    It reminds me of driving through the rural south as an out of state traveler.

  40. So its $4 per $100 hotel cost…big whoop… If you can afford to ‘vacation’ there,(business travel wont care) you can afford it….and out of towners on here are complaining?…..

  41. The precedent has been set by Kroenke, owners need to pay the entire bill themselves. San Diego and Oakland need to stay strong and make the owners pay for everything.

  42. Does anyone think other owners are going to sit back and let the King of California , Dean , Jerry , Mark , capitalize on new stadiums without getting a new one as well ? How long before Buffalo , Carolina , New Orleans , Tennessee and Jacksonville owners come around with hats in hand asking for new stadiums ? The NFL wants to keep that second spot in LA open to hold other cities hostage for new stadiums. They are trying to use London as leverage. They will use San Antonio , Las Vegas and STL. Las Vegas should have a team. Gambling and greed is what runs the NFL .

  43. You guys are falling right into the hands of greedy NFL owners. The taxpayers, local or visitors, should not ever have to pay for the lavish work places of multi billionaires in a league worth tens of billions. Kroenke is building his own stadium as it should be. I thought you conservatives were against welfare. Apparently, you’re ok with giving welfare to billionaires but not to the needy.

    The Chargers are bluffing. They have very little fan base here in LA. No way Spanos wants to be a tenant of Kroenke and the Rams.

  44. “If they tax the tourist I’ll visit elsewhere”

    Go ahead. Go to LA, SF or any other large city. You’ll be paying the same tax amount too. We have too many people enjoying our beautiful weather and beaches during the winters anyways.

  45. The hotel tax in every city is already overpriced, since it’s the first tax local officials raise because it doesn’t affect the local residents. So they want visitors to San Diego, and there are a lot of them, to pay close to 15% tax now on their visits? Doesn’t seem fair when you’re giving it to a billionaire.

  46. It’s hard to see why the stadium has to cost that much. Forget the roof. It’s San Diego. Reduce the footprint by building it around the actual football field, like the old Texas Stadium: you can still hold concerts, etc without making it a gigantic Taj Mahal. Let the NFL/Chargers build the nicest stadium they can for $650 while the city pays for the transportation improvements needed to get traffic to/from the stadium and other such ancillary costs: that model worked well for Joe Robbie Stadium.

  47. granadafan………While I agree that the King of California should be paying for all of the stadium , he is not. No NFL stadium is ever tax free from any city . He is getting help from the county and state as well. Not sure of the actual number but some of the money is coming from someplace else. He wouldn’t be doing this if it wasn’t a great deal for him and he wasn’t going to be making a huge profit. Winning to him is not on the filed its how $$$$$$$ he makes.

  48. Lots of moving parts here, but they might finally be getting to something that the city of San Diego might be able to get on board with.

    I don’t see a 4% increase happening, and frankly, I don’t know why it would need to be that high since it will take 7 years to build this stadium. But, 1 or 2% might not be such an extreme hit to the tourists who already pay a lot to visit San Diego. San Diego has lots of conventions that would be affected by a huge hotel tax.

    Not sure who is footing the bill to clear out the mass transit service that will be evicted from their home for the site of the new stadium, but San Diego has done itself pretty proud to not cave to the demands of a greedy NFL owner who was unreasonably trying to get the city to pay for the entire bill for a new stadium. They saw that Spanos lost LA to Kroenke and came back to San Diego with his tail between his legs and forced him to negotiate something fair to keep the team in San Diego.

    It seems like a deal will be reached soon.

  49. It is great to see people warming up to the proposal. With the expansion of the convention center, and other non-football type events that would take place in the new stadium, there is much to be gained from a YES vote.

    I cannot wait for the mayor and Spanos to have shovels in their hands at the groundbreaking ceremony.

  50. Everyone needs to relax. A billion dollars is going into the economy which means jobs.

  51. The old soak the non voter routine. This tax increase will not cost voters a dime if you believe in fairy tax tales. The $1B price seems obscene. Most likely, land costs and labor cartel rates (and associated work rules) are responsible for this price. Spending $1B on a new stadium does not make economic sense even if non voters are forced to pay a large share. This tax increase will impact demand over the long run. It will also restrict future tax increases.

  52. Why cant cities cut deals with the owners that provides something back to the city ? Say part ownership of the team ? Split profits according to what percentage the city puts into the stadium ? If a city puts the 50 % of the money take 50% of the profit or own a 50% of the team. If the owners want 100% of the profit , pay for the cost of the stadium 100 %. I know , I know that’s never going to happen.

  53. How the heck does not wanting to pay for a stadium equal not wanting a football team? Wanting these disgustingly rich men and the revoltingly rich league to pay for their own stadium instead of taking much needed public funds is logical and correct.

  54. Time to make some changes. Chargers are not going to put their own money at risk. Neither should any TAXPAYER! Local or transient, a tax is a tax! Chargers were going to abandon the San Diego market last year for more money. Let us wait for the right deal, it is certainly not going to be written by the Chargers organization.

  55. I actually think this is a pretty fair deal for San Diego. If San Diegans can’t get 50% of the vote for this then it’s crystal clear that it’s a minor league town. Chargers should just go to LA instead at that point.

  56. 15% tax on a hotel room is pretty high. It’s 17% in a Podunk town like Knoxville,TN.
    Don’t think for one minute the cost will be $1,000,000,000 dollars. Probably more like $1.5 billion and up. What about the road and utility infrastructure that will be required. Hang on to your wallets, San Diego!
    Promise low & need high is the NFL mantra. But hey, you’ll probably get a Super Bowl!
    Goodell reminds me of Professor Hill, from the Music Man.

  57. The NFL and the Chargers can afford to buy their own stadiums. There are always extra costs and you can bet the NFL won’t be paying. Say no to public money and no to tax raises.

  58. San Diego , I know you want to keep your team but you can get a better deal out of Dean and the NFL. Neither wants the Chargers to go to LA. Why isn’t the city putting together a plan that that works for them ? Why is it all from the team? The city should negotiate a deal that is pro San Diego . Put forth an offer that is a take it or leave it. He doesn’t want to go to LA. They could leave but look what you might get , an expansion team with an owner that wants to be in San Diego. The NFL wants a team in San Diego. Seems to me he has no leverage other than the threat of moving. Don’t give into the greed. Try to negotiate to keep the Charger name like Cleveland did with the Browns. He will be miserable in LA with the King of California.

  59. The only way to end the greed and strong hold of the NFL on stadiums being financed from cities is to stop financing them. Just stop doing it. San Diego and Oakland can send a very strong message to the NFL and owners if they just said no , build them yourself. They have the resources. Each team starts with about $250 million without selling a ticket , any merchandising , any corporate sponsorship. That’s if a team goes 16-0 or 0-16 . The NFL and the owners are putting a lot of money in their pockets.

  60. Unless you’re a registered SD voter or ponying up PFT cash, butt out on whether you think it’s a good deal. Everything looks like a good deal from the buffet line in the press box.

  61. Lou Stools…………… Just because someone is not a SD registered voter doesn’t mean they don’t know that the NFL and Dean are trying to take advantage of San Diego

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