Investment bank Goldman Sachs wants the Chargers to move to Los Angeles. They also want the Rams to stay in St. Louis, and out of Los Angeles.
The firm is working diligently on both fronts.
Those are not Goldman’s publicly stated positions, of course, but it doesn’t take much analysis to arrive at this conclusion.
SportsBusiness Journal’s Daniel Kaplan, citing unnamed sources, reported Monday that Goldman Sachs will finance the Chargers’ costs of moving to L.A. by covering “any operating losses suffered by the team in the first few years in that city as well as costs for any renovations needed in a temporary venue.” If they relocate, the Chargers are expected to play in the Los Angeles Memorial Coliseum or the Rose Bowl while a new L.A.-area stadium is under construction.
Chargers special counsel Mark Fabiani confirmed to ESPN that the Chargers have a long-standing working relationship with Goldman and that the firm will work with them on financing a new stadium in the Los Angeles market.
“We are in a hyper-competitive environment regarding Los Angeles at this moment, and so we won’t be releasing specifics on our work with Goldman Sachs,” Fabiani told ESPN. “The bottom line is that we, along with Goldman Sachs, are completely confident that the Raiders/Chargers L.A. stadium proposal can feasibly be financed.”
We Stand Up for You. Will You Stand Up for Us?
The Carson deal is non-financeable. Just forget it.
Goldman Sachs will not ruin its reputation with such mickey mouse deal.
Advisory services are not the same as underwriting. GS would be happy to collect fees from the owner but financing a Carson stadium is totally out of the question. We haven't invented yet 0% interest rate loans for risky assets requiring junk bond financing.
I am surprised at the lack of sophistication displayed by San Diego believing that a Carson-type deal is feasible.
Here’s the game plan:
1. Ignore all the talk coming out of Spanos, Fabiani, Goldman Sachs and anyone involved in L.A. At best, it’s a distraction and most of it is probably B. S. designed to create panic in San Diego.
2. Put together a proposal that first protects city and county taxpayers, utilizing the existing site, allowing for multiple uses and improvement of the San Diego river area.
3. Sit down with the Chargers and negotiate final details with the team with terms that don’t depart financially from what is in our proposal.
4. If a tentative deal is reached, put it before the voters. If not, kiss the Chargers goodbye and see who may be interested in relocating here. This would rid the city of some of the most inept ownership in pro sports. If the city of L.A. can live without pro football for two decades, we can stand it for quite a while.