Chargers’ decision coming this week

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It’s been eight days since the Chargers finished their season, and in only six days their window for moving to L.A. closes, permanently. Here’s a look at what to expect between now and January 15.

A decision between San Diego and Los Angeles most likely will be made by Sunday. The team, per a source with knowledge of the situation, doesn’t plan to request an extension of the deadline. Implicit in that phrasing is the possibility that an extension will be offered (and accepted) and/or that the team’s plan will change.

The January 11 joint meeting of the finance and stadium committee has no relevance to the Chargers. That meeting will focus on the Raiders and a possible move to Las Vegas; indeed, the Chargers won’t even be attending.

The current gap between the NFL and team contribution to a new San Diego stadium and the cost of a new San Diego stadium is $550 million, not $175 million. Getting the gap to $175 million happens only if $375 million is generated from the city and county. The city contribution would require a public vote (and a 50-percent majority), and the county contribution would require approval from the California Legislature and the endorsement of Governor Jerry Brown.

Meanwhile, the NFL is reluctant to bridge all or part of the $375 million gap due to concerns about the precedent it would set for future owners who hope to build or renovate stadiums with public assistance. The bulk of the owners believe that the Chargers have a viable option to share a stadium in L.A., and that they should take it.

The only owner who may disagree is Rams owner Stan Kroenke, who could in theory help bridge the gap with a payment that would ensure he keeps the L.A. market to himself.

While it remains possible that, for example, Kroenke could conditionally commit to the $175 million while the $375 million in public money is pursued with a corresponding delay in the Chargers’ window to move to L.A., the uncertainty has significantly impacted the team’s revenue streams in San Diego, with a 14.6-percent drop in attendance from 2015 to 2016 and possibly more reductions to come as the Chargers kick the can for another year or two before hitting the road.

It’s possible, then, that the Chargers will simply decide to stay put with no stadium solution. affirmatively slamming the door on a move to L.A. in order to rebuild the San Diego fan base and hoping that a stadium solution will emerge. At a minimum, however, the Chargers should try to get some sort of a payment from the Rams in exchange for eliminating the Chargers from the L.A. equation.

In the end, Kroenke’s willingness to write the Chargers a check may hinge on the question of whether the Raiders will not then take advantage of their option to move to L.A., which will arise as of January 16.

To summarize, the complex, high-stakes game of chess, checkers, and chicken continues — and it’s all necessarily coming to a head very, very soon.

58 responses to “Chargers’ decision coming this week

  1. NFL just needs to kick in the money for the Chargers to stay put in San Diego. Then they need to start a fund and divert some of their revenues each year into that pot to fund future stadium projects as they arise.

  2. I would love to see the Chargers stay in SD and the Raiders move in with the Rams. That would be sweet revenge on the NFL.

  3. Los Angeles failed fro Raiders once, history will repeat itself. Just wish the amount of energy in getting sponsors and a stadium in the bay was apparent as the vegas energy

  4. Los Angeles failed for Raiders once, history will repeat itself. Just wish the amount of energy in getting sponsors and a stadium in the bay was apparent as the vegas energy

  5. The league makes over 10 billion a year from its normal operations.

    Now it makes billions more from its shadow ownership of the daily fantasy gambling sites.

    Yet that isn’t enough to satisfy the greed of these scumbags.

    Kraft showed the model. Finance a cost effective stadium with your own money. Gillette cost around 325 million and is a fine building. The state only kicked in 50 million to improve the local road system which desperately needed it.

    Kraft then built Patriot Place around the stadium, with its stores, restaurants, bars, movie theaters, nightclub and Patriot HOF to generate further revenue.

    They have around 20-25 Revolution games a year with the MLS team they also own.

    Krafts get all the revenue from the games, concerts, Rev games and Patriot Place. This is the way to do things not trying to steal billion dollar palaces from the taxpayers that will never come close to generating that much in revenue for the city that coughs up the money.

  6. It’s not complex at all – stadiums are worth building and renovating and that fact makes asking for public money all the more foolish. The league and the Chargers are kidding themselves – they need to spend money they have to renovate Qualcomm Stadium and forget about Los Angeles, which is NOT embracing having the Rams

  7. Wouldn’t it be hysterical if the Chargers took a pass only for Mark to change his mind on Vegas and jump right on LA? I think Kronke would cry foul to the other owners, especially with the arrows pointing in opposite directions for the two teams.

  8. If the chargers move to LA I wonder how many fans they will lose vs how many they will gain in LA?

    Been a charger fan all my life, but if they move to LA I almost feel like I can’t support them out of principle alone.

  9. lukarwarrior says:
    Jan 9, 2017 5:46 PM
    NFL just needs to kick in the money for the Chargers to stay put in San Diego. Then they need to start a fund and divert some of their revenues each year into that pot to fund future stadium projects as they arise.

    I agree but I think they should take that money out of Spanos’ share of the TV revenue and give it to the city. Nowhere in any of this talk do I hear Spanos willing to lift a finger to help out. There’s no way he’s going to part with $650M to move to LA. He’s just trying to put San Diego over a barrel. They should tell him to take his cheap carcass and his lousy team somewhere else, if anyone else even wants him.

  10. Spanos will take the option that involves him spending the least from his pocket. Chargers will go to LA and it will be a likely failure. Team should stay in San Diego where they have a loyal following but Spanos doesn’t want to spend.

  11. Everything I read is the NFL is kicking in this much, the City is going to kick in this much, now Kroenke is going to potentially kick in this much. Where in any equation is Spanos spending any of “his” money? Cheapest owner in NFL and his product shows.

  12. The Chargers are finished in San Diego. They need a new stadium and they aren’t getting it in San Diego. Spanos isn’t going to give the Los Angeles to Mark Davis. He’ll jump on playing in the second largest market in a heartbeat. Hopefully the Chargers play in the Rose Bowl until Kroenke’s palace is complete and rebrand to appeal to the Los Angeles market.

    San Diego Chargers (1961-2016 ) RIP

    This all could have been solved with the passing of measure C. Have fun becoming an ex NFL city.

  13. I’m always surprised that San Antonio never comes up as an option. They have the Alamodome ready to go. And a fairly cool downtown area around it. And a fairly big city (bigger than San Diego at least). They should be in for the Chargers or Raiders. Though Jerry Jones would probably kill that idea personally…

  14. Spanos isn’t staying in a city that voted down a stadium plan that would have been partially funded by tourists. I’ll bet he is packing the moving trucks right now.

    Spanos will apply for relocation and will move his team out of San Diego, which is the right move. He should consider STL and San Antonio, but Los Angeles is the likely landing spot.

  15. Moving to LA makes ZERO sense, and Spanos has to know it. I expect them to kick the can down the road again, or just decide to remain in San Diego. LA is NOT viable for 2 teams, and possibly not even for 1.

    Public money for stadiums needs to completely dry up before these games will even end. Here would be a good place to start – no public funds for this travesty. Spanos can build his own mega-complex, and managed properly, reap the rewards it would bring, as well as the additional value it would add to the Chargers franchise.

  16. …and how much are the Chargers paying to relocate to Los Angeles? These articles never say… it’s 650 million. Enough to build a stadium with those matching funds from the NFL

  17. Everybody including Spanos knows the Chargers would die quickly in LA, it’s simply not a realistic option.

    This is only an option in theory.

    The Raiders moving to LA has to have Kronke shaking in his shoes, because LA remains Raider Country.

  18. As long as the Zoo doesn’t move, I could give a crap about where the Chargers move to.

  19. I hope they stay in San Diego, but I’m happy this thing finally seems to be heading for a resolution, even if it might not be the outcome I want.

  20. The reality is that, as long as there are cities willing to pay for stadiums. The greedy NFL will continue to deny any financial help. These cities need to just bunker down and only provide Money for infrastructure.

  21. How are we claiming there is a $375M gap when they have to pay $650M to move? That’s really opportunity cost. So it is $275M cheaper for the team to remain and pay the $375M than it is for them to move. They would have to project additional revenue from the move of $20M/yr+ in order for the move to make sense and there is nooooooo way that team is going to get $20M/yr more in LA than in SD. There is no way the fan base in LA spends more on Chargers games and gear than the SD fan base spends. And, this isn’t counting the additional revenue they could garner by staying in SD and owning the stadium outright…as a tenant they get zero revenue in LA from concerts and other events. The actual numbers for moving to LA make absolutely zero sense and as ridiculous as Spanos has been about this whole thing, he can be expected to act rationally on behalf of his organization.

    As for Kroenke – he should be prepared to write Mark Davis a HUGE check to prevent them from moving to LA. The day the Raiders move to LA (and probably even Vegas if we are being honest), the Rams become less valuable. At best, it caps the value growth of the Rams franchise. Kroenke should offer both teams some straight cash homey AND a low interest (zero even) loan to stay in their current markets. He should do this because it maximizes the value of his franchise…not out of any sense of charity. The Rams didn’t actively work to maintain their LA fan base when they left. The Raiders have…so moving isn’t as harmful to the brand long-term. With how much the Rams have moved they need singular access to the LA market to make a real run at being successful there. The Rams can’t, from a fan standpoint, have either team directly competing for eyeballs in LA.

    Spanos will only file for relocation out of spite. Financially, there is no way the move makes sense. Davis would be better filing for LA relo and being paid off and staying in Oakland than in Vegas, but the Vegas homers here will spout off about the desirability of their market compared t0 “Oakland” (ignoring the rest of the bay area while counting Vegas metro area in its market size) and why Davis is getting such a good deal getting in bed with the biggest shark in this country…

    The rational moves are relatively easy to see, and you have to assume folks worth this much will act rationally unless they have a documented history of doing otherwise and that isn’t the case here.

  22. Just a guess but do not think the NFL can extend the Chargers deadline past the 15th without the Raiders agreeing as it is their option starting on the 16th.

    You have been dead wrong on almost everything you have posted on these moves. Adelson wants % of Raiders as owner, wrong. Vegas move will never happen as you posted early on, wrong. I could go on for days, the writers here in Vegas have hit it on the nail head from day one.

  23. Don’t worry. Once Belicheat retires and all the bandwagon fans leave LA can have the Patsies. The market is as fake as the NE fan base. Match made in heaven.

  24. flaccojumpball says:
    Jan 9, 2017 9:12 PM
    Don’t worry. Once Belicheat retires and all the bandwagon fans leave LA can have the Patsies. The market is as fake as the NE fan base. Match made in heaven.
    All those phony fans who have been selling out Foxboro and then Gillette Stadiums since 1994…

  25. Why should kroenke kick in more money? If The Raiders move to LA he is screwed. If it’s the chargers he has a shot to become the main team in LA.
    For the $650M relocation fee, they ought to buy Qualcomm and renovate it. At this point if the city could keep the team they would presumably sell the stadium for a very low price in exchange for not having to give any money for the new stadium. Sink the difference into Qualcomm upgrades and you have an NFL owner that actually owns his own stadium and won’t ask for a new one anytime soon.

  26. If the Chargers move to LA it would be a horrible mistake. They will not draw there especially at the inflated prices for the new stadium. Most teams suffer with empty seats when the team isn’t winning. So make the team better and stay in SD is the best option. However Stan the man may want them to come as they really pose no threat to his brand, and may want to avoid any chance the Raiders move to LA as they will instantly take over the region and the Rams would be the 2nd team in their own stadium.

  27. Damn! When I read ‘Chargers’ decision coming next week, I thought they were talking about a coach.

    Usually, the Chargers will wait until all the good coaches are hired, then pick somebody from the left-over bin.

  28. [i]whenwilliteverend says:
    Jan 9, 2017 6:29 PM
    There’s no way he’s going to part with $650M to move to LA.

    darthvincent says:
    Jan 9, 2017 7:27 PM
    …and how much are the Chargers paying to relocate to Los Angeles? These articles never say… it’s 650 million

    coachglove says:
    Jan 9, 2017 8:39 PM
    How are we claiming there is a $375M gap when they have to pay $650M to move?

    jm91rs says:
    Jan 9, 2017 10:11 PM
    For the $650M relocation fee, they ought to buy Qualcomm and renovate it.
    The relocation fee was never announced. You guys are repeating fake news from a made up source with no quotes. Watch the January announcement.

    Stop spreading BS or post a real quote from a verifiable NFL representative like Goodell. You can’t do it.

  29. SD native. I go to the games. Hate to see them leave. I’m down with my team no matter what. Even when we lost to Cleveland. Ugh.

  30. Meanwhile, lets see where we would be in the bizarro alternative NFL universe where the owners decided to accept the only feasible stadium proposal put forth from StL, Oakland or San Diego, & the Rams stay in StL moving to the AFC west & raiders & chargers move to LA, the Chargers going to the NFC West?
    St. Louis- the stadium on the waterfront is been under construction since the summer. The Rams struggle in the AFC West, but rally to salvage a 7-9 season after a late rally led by a rookie quarterback who’s was not picked #1 overall just to try to appease sunshine staters and last name does not rhyme with Roff. Jeff Fisher retains his job, the nation continues to remain in the blue about how bad this franchise is actually run top down.
    Raiders- in their first year back in LA, they break both attendance records at the Colosseum as well as rating records on their way to the first playoff hearth in 15 years & first playoff game in LA in nearly 30 yrs.
    Chargers- remain competitive their first season in the NFC West, but manage to beat the 49ers twice making them only the second franchise to go 0-16 in a season.
    Las Vegas- with no NFL team looking for a home, the state prioritizes hundreds of millions of dollars to improve its dead last nationally education system.
    Pro football talk readers- are spared endless articles about relocation and the constant force-feeding of news on the terrible team in the nation’s 2nd market in attempts to make them relevant.
    So, San Diego & Oakland lose teams (which will probably happen anyways next week), StL gets bilked hundreds of millions while stuck with a miserable franchise and NBC, ESPN & the NFL network don’t get free shiny new studios in LA. Otherwise, that alternative universe doesn’t look so bad from today’s vantage point. But hey, football is family, right?

  31. Spanos won’t follow the Kraft plan, because he isn’t as smart as Kraft. Just look at their GMs and roster moves, it’s like AP Calculus versus Legos 101. If he’s lucky, they might let Deano sit at the big boy table one day!

  32. Chargers are not going to LA, but alas the leverage charade will likely continue with some sort of extension BS – owners know Chargers would be a complete flop laughing stock in LA. With people laughing at PSL’s and oceans of empty seats, Spanos could never pay the relo fee, let alone make TV revenue and profit for his partners. SD is their only market, other than maybe a new city like Portland or San Antonio.

    LA market effectively belongs to Kroenke, he just cut a $550 million check for it.

    Something 12th hour will come up with Spanos getting sympathy money to stay where the NFL wants him to.

  33. Please realize that the cities have the leverage as long as no one buys these billionaires off. I want to see Dean open HIS checkbook if he decides to move: $500 million relocation fee! New practice facility! New offices! Big marketing dollars to woo new fans and corporate sponsors! Ha, ha, Kroenke will have already cherry picked the best corporate sponsors.

  34. San Diego is a world class city; they deserve their team as does the NFL fan base. Oakland should stay put, as well, based on the uniqueness of the Raider’s team and history.

    Toronto is now a world class city and can support an NFL team, however. 😉

  35. kronke cannot write a check to keep bolts and raiders out of LA because then it would set a precedent for other teams to go to LA for payment…..and if they say a deal then makes it ONLY THE RAMS the nfl loses a big stick for other franchises to extort funds from their city

  36. STAY IN SD!!!

    I went from a life long season ticket holder to someone who hardly cares over the last few years. Including my family and friends. I’ve ben through the Ryan Leaf era, so losing has nothing to do with it. This uncertainty completely sucked the life out of this fanbase.

    I’m ready to be an annoying Chargers fan again. To embrace the Spanos family as dare I say, great members of our community.

    But if they move, I’m ready to never follow the NFL again.

  37. Chargers stay in SD. NFL will help with funding for a stadium. Raiders to LV. Stan wants no part of Davis and the Raiders would take over LA. Rams would be the 2nd team in their own stadium. I think LV will be more profitable to Davis than LA and isn’t that way teams move anyway ? To make more money ? They would be the only team in town . The Raiders fit LV. I cant think of another team that would fit better. The last thing is , the NFL wants to keep LA open for a second team to use as leverage for other teams to get new stadiums. Don’t you think Buffalo , Tennessee , New Orleans and Jacksonville are paying close attention to these new stadiums going up around them like Dallas , Minnesota , Atlanta , LA now LV and probably SD ? It wont be long until one of those teams ask for their cities to build them a stadium and they will use LA as leverage to get it done. The NFL is running out of places to go. Maybe we will see the London Jags ,LA Bills or the Portland Saints , SA Titans someday.

  38. The NFL is running out of places to go. Maybe we will see the London Jags ,LA Bills or the Portland Saints , SA Titans someday.

    Good post. The NFL has or is currently conducting expansion research for: Salt Lake, Norfolk (VA), Columbus, Honolulu, Orlando, Omaha, San Antonio, Portland, Toronto and London.

  39. Has anyone heard or saw the relocation terms for the Rams ? Have they paid it ? What are the terms ? I have followed all of this very closely from Rams moving to LA and now the SD/OAK situation but I have not heard anything on the fee to SK.

  40. 3menandablog……………..I hope your Chargers don’t move but when the Rams left STL , I found my Sundays open and wasn’t chained to the TV watching a team that cared nothing about the city they play in or the fans that pay to watch them play. Now if there is a game of interest on I will watch but if there is something else going on , nice day outside I don’t feel like I have to watch football. I do enjoy watching the Rams lose. Best season in 15 years for STL fans.

  41. The real issue that no one talks about is how the costs of these stadiums has spun completely out of control. There is no reason a very nice (not extravagant and excessive) stadium can’t be built for $750 to $800 million. Most people go to NFL games for….wait for it….the game. Football stadiums shouldn’t cost a billion and a half dollars. Period. If the costs were more realistic we wouldn’t have to have all these teams moving around constantly.

  42. 45K seats is where the NFL needs to be. That and start investing more in the home viewing experience and social media.

    It’s a new world.

  43. The Chargers are moving! There is no way Spanos is handing Mark Davis the 2nd largest market in the U.S.. There were reports that the Chargers were talking to the L.A. Coliseum folks about playing there next year. San Diego isn’t an NFL city anymore. They failed when they voted down measure C.

    San Diego Chargers 1961-2016 RIP

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