The Rams’ move to Los Angeles was largely due to the fact that the organization should have never left the city. Owner Stan Kroenke’s yearning to earn more cash also played a role in the decision.
According to Forbes, Kroenke has done just that. The Rams’ franchise is now worth nearly four times what it was when Kroenke bought a majority share back in 2010.
Forbes says Stan Kroenke's Los Angeles Rams are now worth $2.9B. Nearly 4 times what he paid for the team in 2010. pic.twitter.com/W5DwjZSuVC
— Rand Getlin (@Rand_Getlin) September 14, 2016
Teams like to move for new stadiums because they help with overall value and revenue. However, moving to a market like Los Angeles was huge for the Rams, because it gave a market their original team back. The Rams belong in L.A. and the valuation is showing that.
Also important to note here is the fact that Los Angeles represents the nation’s second-largest media market — something St. Louis surely can’t say.
These valuations are always interesting because they include the sport itself, and in the case of the Rams, the NFL being the most profitable league. But profits of $89 million per season combined with the rest of the intangibles of the city makes the Rams an amazing investment for Kroenke.
The only real question regarding valuations like this is the stadiums teams play in. The Rams are currently hosted at the legendary Los Angeles Coliseum.
The Rams will likely see a major increase in overall value once they open up City of Champions Stadium in Inglewood in 2019.
When a new stadium gets built for the team, valuations tend to skyrocket. The Rams have a new stadium being built in Inglewood that is going to cost nearly what the franchise is worth, an estimated $2.66 billion. Once that stadium finishes, expect the valuation of the Rams to nearly double and Kroenke’s investment to look better than it ever has.