Fpoonsie
02-01-2011, 02:05 AM
Source: Farmers to sponsor LA stadium
By Arash Markazi
ESPNLosAngeles.com
LOS ANGELES -- If the NFL does return to a proposed stadium in downtown Los Angeles, the league's newest venue will be called Farmers Field, according to multiple sources with knowledge of the deal.
On Tuesday morning, AEG officials are set to announce they have reached a naming rights deal with Farmers Insurance worth $700 million over 30 years. The deal could potentially be worth more if the stadium were to attract more than one NFL team.
The announcement will take place inside the West Hall of the Los Angeles Convention Center, a building AEG plans to demolish to build their proposed 64,000-seat retractable roof stadium, which would connect to the current convention center.
AEG president and CEO Tim Leiweke had said he needed this kind of "contractually obligated income" to make the proposed stadium a reality. It seemed like a daunting task when he first announced his idea for downtown stadium in April considering newly built stadiums such as Cowboys Stadium and the New Meadowlands Stadium have yet to secure naming rights deals.
Even with a naming rights deal in place, Leiweke and AEG still have several hurdles to clear before they can begin construction. The company must still pass an environmental impact review, complete the entitlement process and come to a long-term land lease agreement with the city. AEG is also asking the city to issue $350 million in bonds which would help build a new extension to the convention center that would replace the torn down West Hall and additional parking units. Leiweke has said ticket-tax revenue will pay off the debt and AEG would write a check for any shortfalls.
A competing proposal by billionaire developer Ed Roski of Majestic Realty to build a 75,000-seat open-air football stadium in the City of Industry is shovel-ready after getting two approved environmental impact reports. While Leiweke has promised no tax-payer dollars would be used in the proposed downtown project, his opponents in Industry are arguing otherwise.
"AEG is expecting taxpayers to dole out well over a billion dollars for a proposal that will compromise the City's general fund, the L.A. Convention Center, the new stadium and the financial success of any potential NFL team," said John Semcken, vice president of Majestic Reality, who has been working with Roski over the last 15 years to attract an NFL team back to Los Angeles.
Leiweke called the comments "fear tactics" and seems to have the support of city politicians, many of whom, such as Los Angeles mayor Antonio Villaraigosa, will be in attendance at Tuesday's press conference.
Earlier this month, Leiweke had hinted this agreement was forthcoming and that it would be the most significant sign yet that the NFL would finally be returning to Los Angeles for the first time since 1995.
"By the time we hit the Super Bowl we're going to have an announcement that proves to everyone once and for all that this project is going to happen," Leiweke said. "It's going to be private and it's going to be brilliant and it's going to happen."
Arash Markazi is a columnist and writer for ESPNLosAngeles.com.
link (http://sports.espn.go.com/los-angeles/nfl/news/story?id=6078709&campaign=rss&source=NFLHeadlines)
By Arash Markazi
ESPNLosAngeles.com
LOS ANGELES -- If the NFL does return to a proposed stadium in downtown Los Angeles, the league's newest venue will be called Farmers Field, according to multiple sources with knowledge of the deal.
On Tuesday morning, AEG officials are set to announce they have reached a naming rights deal with Farmers Insurance worth $700 million over 30 years. The deal could potentially be worth more if the stadium were to attract more than one NFL team.
The announcement will take place inside the West Hall of the Los Angeles Convention Center, a building AEG plans to demolish to build their proposed 64,000-seat retractable roof stadium, which would connect to the current convention center.
AEG president and CEO Tim Leiweke had said he needed this kind of "contractually obligated income" to make the proposed stadium a reality. It seemed like a daunting task when he first announced his idea for downtown stadium in April considering newly built stadiums such as Cowboys Stadium and the New Meadowlands Stadium have yet to secure naming rights deals.
Even with a naming rights deal in place, Leiweke and AEG still have several hurdles to clear before they can begin construction. The company must still pass an environmental impact review, complete the entitlement process and come to a long-term land lease agreement with the city. AEG is also asking the city to issue $350 million in bonds which would help build a new extension to the convention center that would replace the torn down West Hall and additional parking units. Leiweke has said ticket-tax revenue will pay off the debt and AEG would write a check for any shortfalls.
A competing proposal by billionaire developer Ed Roski of Majestic Realty to build a 75,000-seat open-air football stadium in the City of Industry is shovel-ready after getting two approved environmental impact reports. While Leiweke has promised no tax-payer dollars would be used in the proposed downtown project, his opponents in Industry are arguing otherwise.
"AEG is expecting taxpayers to dole out well over a billion dollars for a proposal that will compromise the City's general fund, the L.A. Convention Center, the new stadium and the financial success of any potential NFL team," said John Semcken, vice president of Majestic Reality, who has been working with Roski over the last 15 years to attract an NFL team back to Los Angeles.
Leiweke called the comments "fear tactics" and seems to have the support of city politicians, many of whom, such as Los Angeles mayor Antonio Villaraigosa, will be in attendance at Tuesday's press conference.
Earlier this month, Leiweke had hinted this agreement was forthcoming and that it would be the most significant sign yet that the NFL would finally be returning to Los Angeles for the first time since 1995.
"By the time we hit the Super Bowl we're going to have an announcement that proves to everyone once and for all that this project is going to happen," Leiweke said. "It's going to be private and it's going to be brilliant and it's going to happen."
Arash Markazi is a columnist and writer for ESPNLosAngeles.com.
link (http://sports.espn.go.com/los-angeles/nfl/news/story?id=6078709&campaign=rss&source=NFLHeadlines)