Los Angeles Rams owner Stan Kroenke is reportedly going to borrow a cool $1 billion from JPMorgan Chase to build his new stadium in Inglewood, Calif.
This rather shocking (to us average folks) news comes by way of Daniel Kaplan of SportsBusiness Journal and Daily.
Rams owner Kroenke is borrowing $1 billion from JPMorgan Chase for new Inglewood stadium. Story in @sbjsbd
— Daniel Kaplan (@KaplanSportsBiz) January 18, 2016
The original estimate for the new digs in Los Angeles came to $1.86 billion. Since then, the Orange County Register reports the stadium could end up costing up to $2.66 billion.
Including the $550 million relocation fee, we’re talking about some serious cash being pumped into this project.
Kroenke's costs will be around $3 billion before first game in new stadium is played in 2019. https://t.co/e1Cwv3GMPT
— Darren Rovell (@darrenrovell) January 18, 2016
Apparently NFL football is popular in America or something.
The new stadium will not be ready for action until the 2019 season, and nobody should be shocked if more hidden costs emerge from now until that point in time.
With the likes of Magic Johnson already clamoring to buy a suite, you can be sure the games will be sold out for years to come afterwards, though. This is a potentially sound long-term investment by a man who is worth $7.7 billion, and he’s landed himself in the second-largest sports market in the USA.
Meanwhile, the rest of us will try to pick our jaws off the floor.