After 56 years of playing football in San Diego, the Chargers are officially moving to Los Angeles. Nothing crazy about that – except for the fact that the St. Louis Rams just moved to L.A one year ago. Now, a city which just two years ago had no professional football teams will suddenly have two. Why would the Chargers move to a city which already has a football team?
The Chargers are Moving To L.A After 56 Years
Forget loyalty. Football is a business. And for an NFL team, business is always good. But in some places, it’s better than others. For the Chargers, business apparently will be significantly better in L.A. than San Diego. Considering the team was in San Diego for almost 60 years with a loyal fan base and a thriving market, what possible reasoning would the team have to leave?
For starters, Qualcomm Stadium, current home of the Chargers, is falling apart. The Chargers have been on a year-to-year lease for a while now, with talks of a new stadium seeming to hit a wall. With no new stadium coming, it’s a tough sell to convince the team to continue playing in the crumbling relic of a stadium.
And while that makes sense, it’s only part of the reasoning behind the move. The Chargers will be playing football for the next two years at the Stubhub Center, home of MLS team LA Galaxy. That makes the Stubhub Center the smallest NFL stadium with a seating capacity of 27,000 seats. The next smallest stadium would be the 54.000 seat Coliseum, home of the Oakland Raiders. And the Chargers won’t even own their stadium, but rent it (although at a rate of only $1 a year). Regardless of what team representatives may say, this move is about one thing – money.
By moving to L.A, the Chargers automatically boost their value. Just how much more money can the Chargers produce in a new city? It’s a big number. The Chargers are moving into the number two media market The Rams, who just moved to L.A. from St. Louis instantly doubled their value to $3 billion – just by moving. The Chargers, already valued at $2 billion, would likely double in value, as well.
This value comes from the market itself, which allows the Chargers to bring in more revenue from higher rates on TV advertising, more expensive merchandise, corporate sales, and even endorsement and vendor contracts with companies. The money from luxury suites alone will bring in significant profits for the team.
Watch as Sports Director Ben Higgins offers insight on the Chargers' decision on this ABC 10 News report:
The move can only be about money. The Chargers are moving into a stadium they don’t own (after two years in the NFL’s smallest stadium) to play in front of a smaller fan base in a new city. L.A.’s advantage is the media market, which will immensely benefit Charger ownership. As a result, don’t be surprised if the end result of this move is owner Dean Spanos selling the team at an enormous profit.
The statements, views, and opinions of any article, contribution, editorial, or advertisement in this publication are not necessarily those of The Capitalist or its editorial staff, and are not considered an endorsement, sponsorship, or recommendation of any referenced product, service, issuer, or groups of issuers.
This publication provides general information about certain subjects, and should not be construed or taken as advice (legal, financial, investment, tax, or otherwise). Do not construe or take any information in this publication as a solicitation, offer, opinion, or recommendation to buy or sell any securities, bonds, or other financial instruments or to provide any legal, financial, investment, tax, or other advice or service about the suitability or profitability of any financial instruments or investments.
The Capitalist disclaims any liability for the accuracy of or your reliance on any statements, views, opinions, or information in this publication.
- U.S. Employment Costs Surge
- UAW Strike to End Following Tentative Deal with General Motors
- Prices for Goods and Services Increase Beyond Expectations
- GDP Soars 4.7% Thanks to Rise in Consumer Spending
- New Home Sales in the U.S. Rise Amid Skyrocketing Interest Rates
- Reports: X/Twitter Shrinking Worsens Following Rebranding
- Reports: Amazon Testing Humanoid Robots for Warehouse Operations
- Elon Musk’s X/Twitter Announces Subscription Tiers