Statement: “City currently receives about $2.5 million in rent annually from the Chargers,” says a city document provided to Mayor Kevin Faulconer’s Chargers stadium task force.
Analysis: In theory, the Chargers have to pay the city of San Diego rent each year to play at Qualcomm Stadium. In reality, it’s the city that pays the Chargers.
Over the past seven years, the city has paid the Chargers a total of $3.3 million despite a lease agreement that requires the team to pay the city.
There are two reasons for this. The Chargers annual payment due to the city gets eaten away by a series of rent credits, which drastically reduces the team’s bill. Then the city pays the team each year as part of a settlement to a 2006 American with Disabilities Act lawsuit at Qualcomm. The result is that the city has owed the team money – an average of about $500,000 a year — after every season since 2007.
Let’s break down how this all works:
Help Us Raise $100k By the End of May
Do you suppose it's possible that, under a new agreement, the city doesn't end up continually getting screwed by the Chargers? Is there anyone here who can negotiate a reasonable agreement for the city? Jason Hughes maybe? This city has so little real expertise in myriad areas it's really frightening: leases on city property with hotels, settlement of lawsuits against the city, negotiations with our unions, pension issues,you name it. This city is run by amateurs in most key positions.
This article reflects a bigger issue with the City of San Diego. They let Politicians negotiate sports deals. Just look at Petco, PGA, etc. This should be done on business principals not what a Mayor or Council Person wants. When you hear a politician say the event or deal creates economic growth, guard your pocket book. Because an event or deal will increase the overall good of San Diego is not relevant. Naming rights, development, percentages of revenue are core issues and our politicians do not have a clue. They listen to non professional advisors who have political motives. So day in a perfect world our San Diego Government is going to wake up and smell the roses instead of selling the taxpayers short.
I have to ask, IF building and financing a football stadium for the Chargers is so financially sound, why do the Chargers need My tax money, while the infrastructure in San Diego continues to erode?
Why can the football stadium in Carson be privately-funded, but a football stadium in San Diego needs over 500 million dollars of public money?
The city renegotiated the lease in 2004 to get rid of the ticket guarantee that would have expired in 2007, and they cut the rent through 2020. What a bunch of idiots. Faulconer needs to tell the Chargers to get lost or we will end his career if he tries anything stupid, well anything more stupid than his normal day to day idiocy.
"The existing lease would require the team to pay more than $70 million above the city's rent proposal through 2020, with annual rent escalating from $7.2 million this year to $9.9 million in 2020."
Beyond the misleading statement about the City receiving $2.5 million in annual rent from the Chargers, the whole idea of taxpayers being forced to fund a private place of business, i.e., a new stadium, is anathema to basic property rights. I work hard to make my money. If Spanos, the Chargers, their fans, and their political friends want to fund the Chargers and a new stadium, let them pay for it! Don’t force me to give you my money. It’s not yours. It’s mine. Got it?
The team gets to deduct it’s property taxes from it’s rent? WHAT property taxes, for Spanos home?
Next time some Chargers’ fanatic (there’s got to be at least one left) claims the Chargers are a financial bonanza for the city, tell him to show you the data.
@Bill Bradshaw There's a CA tax law that property tax must be paid on publicly owned property if the primary tenant is a for profit private entity. That's the gist at least but it's been years since I read the actual law.
Mayor Faulconer - if you allow/enable the Chargers to manipulate the City of San Diego into building a new stadium, you'll end up in history books right next to Susan Golding! If the Chargers can afford to participate with the Raiders in building a new stadium in Anaheim without taxpayer funding (so they say, at least), they can afford to build their own stadium here and it should not be downtown!
Personally, I would love to see the Chargers leave San Diego. They can fleece taxpayers somewhere else. The costs to us, the San Diego taxpayers, has already been massive - imagine what that taxpayer money could have been paying for without the Charger lease ripoff!
Your being kind here Liam.
Its a bald-faced lie and indicative of lack of credibility this city has when it comes to the taxpayers.