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  #21  
Old 01-15-2017, 12:32 AM
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I'm sure hey have a good idea that their cleints corporation will increase in value because of their move.

The question that remains to be answered is how does this effect the other owners? Does it negatively affect their brands? It might is ratings drop. Pressure rises on other owners. Who knows...
I agree that the firm that did the valuation for the Chargers probably had a good idea that it would go up.

But my question was different, because the other poster mentioned that sometimes bankers can doctor the numbers out of self interest.

So what I am asking is: Did financial houses who did NOT have the Chargers as a client do evaluations?
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  #22  
Old 01-15-2017, 01:30 AM
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This is all just fluff. There is absolutely nothing rigid about this - nothing concrete. Just anecdotal BS.

Yes, LA is a much bigger market. The Chargers will have much, much less of the pie in that market. They have no fans in that market. They have no stadium - they are just leasing from the Rams who actually own it.

Oh, and they took on $650mm of debt just to go there. Tell me how that increases equity...
I can't tell if you liked my answer or not.
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  #23  
Old 01-15-2017, 04:39 AM
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Appeal to the Raider crowd in LA and Spanos can win fans... If that happens expect the "draft players with character" attitude to go away.

Its LA right? Put on a show... Win or lose there are ways to put people in seats.
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  #24  
Old 01-15-2017, 08:48 AM
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seeing tweets that the chargers were booed at the lakers/clippers game yesterday..i heard different...should've been rivers or gates at the game..probably would've gotten a louder pop from the crowd..wont take long before the chargers become the team of la and not the crappy rams...

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Old 01-15-2017, 01:16 PM
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Originally Posted by LongTimeOCBolts View Post
I agree that the firm that did the valuation for the Chargers probably had a good idea that it would go up.

But my question was different, because the other poster mentioned that sometimes bankers can doctor the numbers out of self interest.

So what I am asking is: Did financial houses who did NOT have the Chargers as a client do evaluations?
Absolutely not. Valuations are entirely overrated. Whether it's a real estate appraiser, corporate credit rating agencies, or investment bank valuations (aka fairness opinions), the principles are all the same... you are being paid by the subject company/organization, and it's generally expected for you to "arrive" at the value they want you to arrive at. If you don't arrive at that value, you will kill deals, which is a quick way to insure that you never get their business again.

Regarding my earlier point, it's not that they doctor numbers, it's that they do a lot of research but are selective in what they present. They present data/market info/analyses that pitch an opportunity. Again, they are incentivized by commission. When was the last time a car salesman talked someone out of that upgrade or a realtor talked someone into staying in their current home.

I remember reading from one of those insiders (I forget who now) but they basically said the NFL structured the Chargers LA option as a low risk, low reward last case scenario for the Chargers. It wasn't supposed to be economically incentivized, it was supposed to be a back door in the event that they couldn't get a stadium done, but rumors were that the league wanted the Chargers to stay.

I'm not convinced this is an economic decision, I think it's more about ego. It is possible that in 10-20 years they drive some real franchise value in LA. LA is much bigger and therefore has more surface potential. However they have a huge mountain to climb out of $650mm of debt and another huge mountain to climb for fans in the worlds most competitive sports market.
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  #26  
Old 01-15-2017, 01:44 PM
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Absolutely not. Valuations are entirely overrated. Whether it's a real estate appraiser, corporate credit rating agencies, or investment bank valuations (aka fairness opinions), the principles are all the same... you are being paid by the subject company/organization, and it's generally expected for you to "arrive" at the value they want you to arrive at. If you don't arrive at that value, you will kill deals, which is a quick way to insure that you never get their business again.
Yeah, I'm familiar with the valuations dance. (go through it every couple of years with one client or another). I was just wondering if a party other than the Chargers had paid for a valuation.

Also -- your premise is right, but in this situation, why would the Chargers have a pre-determined outcome that they hope for? If it was my company, I'd want an honest valuation, so I could weigh my stay-or-go option properly.
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Old 01-15-2017, 03:43 PM
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Yeah, I'm familiar with the valuations dance. (go through it every couple of years with one client or another). I was just wondering if a party other than the Chargers had paid for a valuation.

Also -- your premise is right, but in this situation, why would the Chargers have a pre-determined outcome that they hope for? If it was my company, I'd want an honest valuation, so I could weigh my stay-or-go option properly.
I doubt it, if anyone was doing a valuation it would be because they were paid to do so, the payment for which would come from the Chargers in one way or another, even if it was done by or coordinated by the bankers.

On your 2nd part, if the bankers are the ones lining up the deal then pre-determined outcome would be theirs. It's up to the Chargers to read through their bs and analyze value for themselves, that part has to be done in house.

One point just to clarify, I'm not saying it's a terrible business decision. It's a curious business decision, and I guess we'll see how it plays out. I just don't think that by slapping LA on the name it automatically adds $1 billion to the franchise value.
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  #28  
Old 01-15-2017, 05:27 PM
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Massive population exposure, instantly. Tv rights would be through the roof, based upon mass population and related ratings.

Endorsement city USA. West Coast monster vs New York East Coast Monster. Spotlight. Hollywood, celebrities, and stars. Media exposure. The bigger your domain, the greater the opportunity to cash in on the fantasy and reality of the NFL. That L.A. stadium will make money for whichever team plays there, but the big picture is that it will serve as the show biz platform for the league. Think concerts and entertainment laden with NFL endorsers such as Hyundai, Visa and Microsoft.

Location, location, location.

San Diego is a backwater town in the scheme of pro sports markets.
Great post ?
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  #29  
Old 01-15-2017, 06:07 PM
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I doubt it, if anyone was doing a valuation it would be because they were paid to do so, the payment for which would come from the Chargers in one way or another, even if it was done by or coordinated by the bankers.

On your 2nd part, if the bankers are the ones lining up the deal then pre-determined outcome would be theirs. It's up to the Chargers to read through their bs and analyze value for themselves, that part has to be done in house.

One point just to clarify, I'm not saying it's a terrible business decision. It's a curious business decision, and I guess we'll see how it plays out. I just don't think that by slapping LA on the name it automatically adds $1 billion to the franchise value.
It's not just slapping the LA name on. It's based on what they think the team can make on revenue that isn't shared such as Luxury boxes and sponsorships. There's no question that LA has a better economic base to draw from. The question is will the Chargers be able to draw it. Hence the fight for la.

It's an inexact science for sports franchises. They're unique properties and sometimes a guy like Steve Ballmer comes along who just wants to own a team, has the money and is willing to overpay by a great deal to get it. The Clippers weren't valued anywhere close to $2bb but that's what he paid.
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  #30  
Old 01-15-2017, 06:14 PM
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Remember when Dean got stabbed in the back on his Carson Empire dreams last year by the other owners? It's what makes me optimistic. Knowing how fast the league three Dean under the bus last time. You know there is a small clause in relocation paperwork that the owners can re-vote and cancel the deal.

The NFL may be out of touch, but they could easily see a negative reaction to this announcement and built an out clause for themselves. If this is hurting the brand of the NFL, which a years worth of ratings will tell, Deans gains will be far outweighed by the leagues losses.
Hopefully, that would be nice. Though I'm not sure if that would work for us, didn't they already approve our move in effect since they gave us the LA option?
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