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  #31  
Old 01-15-2017, 06:19 PM
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Originally Posted by The Moekid View Post
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.
Exactly, but in order to do that they need a fan base, which isn't going to be easy.

They also are taking on $650mm in debt to even get there.

Did anyone see the UT article today? It said that it will probably take the Chargers 10 years in LA before they see a profit.
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  #32  
Old 01-15-2017, 06:26 PM
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Originally Posted by I AMazing I View Post
Exactly, but in order to do that they need a fan base, which isn't going to be easy.

They also are taking on $650mm in debt to even get there.

Did anyone see the UT article today? It said that it will probably take the Chargers 10 years in LA before they see a profit.
Maybe not so much a fan base but a base or corporate fans who buy suites to entertain clients and business associates. Those aren't fans in my mind.

They will need fans to buy the premium priced tickets in the new place. That will take some doing
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  #33  
Old 01-15-2017, 07:05 PM
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Originally Posted by qbertone View Post
It's there.

This whole thing could be a sleazy plan to grab San Diego by the cahone's to squeeze every dollar they can out of the city and get the downtown stadium over MV.
If it keeps them in SD then I'm down, but I think you're being geneous with Spanos' sophistication
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Pre FA Mock - Chargers

Trade back in 1st.

1. Ryan Ramczyk, OT
2. Adoree' Jackson, CB
3a. Zay Jones, WR
3b. Eddie Jackson, S
4. Tyus Bowser, Edge
5. Eddie Vanderdoes, DT
6. Julie'n Davenport, OT
7. George Kittle, TE

FA: OG
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  #34  
Old 01-15-2017, 07:24 PM
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Originally Posted by I AMazing I View Post
Exactly, but in order to do that they need a fan base, which isn't going to be easy.

They also are taking on $650mm in debt to even get there.

Did anyone see the UT article today? It said that it will probably take the Chargers 10 years in LA before they see a profit.
Fairly long time.

I was wrestling with the economics of this before in the stadium thread. http://forums.chargers.com/showpost....85&postcount=7
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  #35  
Old 01-15-2017, 09:57 PM
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A franchise's valuation only has meaning if someone is willing to pay that price. A house may be valued by zillow at $1 million, but if nobody will pay more than $800k for it, that then is it's true value.

Virtually all the competition posts I've seen seem to imply that the Chargers, if they do better, only need be concerned with the currently bad Rams.

First, the Rams have the prior 49 year history, fans from those years, and were wanted by LA - the Chargers mostly are not desired. A disliked team does not suddenly get liked merely winning.

Second, unlike in San Diego, where the Chargers only competed with one pro team and one major college, it will be dramatically different in LA. They are competing for overall fan dollars, which with escalating prices in all sports, are hardly limitless. Beyond the Rams, they have two huge schools, UCLA and USC, to compete with for the football fan dollar.

Also in September they will be competing with the Dodgers and Angels (and October if those teams make the postseason). Come October/November through the NFL playoffs, they have to deal with the Lakers/Clippers, and the Kings/Ducks.

I know from experience in the NY market that people no longer can afford to attend many pro games, just too expensive. So they get very selective in what they will attend, not based upon who is winning, but which team they like best, and want to see in person. I believe the less-than-popular Chargers will have an extremely difficult, large mountain to climb to be successful and profitable in the Los Angels market, even over the long term.
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  #36  
Old 01-15-2017, 10:41 PM
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Originally Posted by I AMazing I View Post
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.
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Originally Posted by LongTimeOCBolts View Post
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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Originally Posted by I AMazing I View Post
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.
Seems you changed your argument 180 degrees. At first you said that the valuations are trash because the bankers doing them have to come to the pre-ordained numbers that the client (Chargers) wants.

But when I asked "why would the Chargers have a pre-ordained number if they are trying to honestly evaluate alternatives", you now say that the Chargers didn't -- the bankers did.



*I say "this situation" because like I mentioned -- I wrangle with accountants regularly when it comes to valuations. And you are right that usually, a client wants a certain valuation (taxes; capital gains; options; selling price; IPO, etc). But in this case, if a client wants to learn about potential alternative valuations, to guide it on choosing a path, I would absolutely prefer a straight up, by-the-book, analysis.


p.s. I think I know the argument you've settled on, and it may well be a legit one. But I don't want to put words in your mouth, and it would mean that your first point was wrong or at least inapplicable.
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  #37  
Old 01-15-2017, 11:02 PM
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Originally Posted by qbertone View Post
Spanos may not be the smartest, but he sure has the wealth to hire some of the smartest lawyers in the land.
Which guarantees neither smart strategy nor outcomes.
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  #38  
Old 01-16-2017, 03:20 PM
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There is big potential in moving to Los Angeles but it is not without risk. If you want to maximize your franchise value, you better put a good product on the field. Ballmer did pay an unprecedented amount for the LA Clippers, but I think the price tag is different without the current young talent on their roster and years of playoff appearances. It's not just that Ballmer would have been willing to pay less for the franchise, but that there would have probably been less bidders to begin with and who knows what the final outcome is.

It's not a coincidence that the newest owners of major LA franchises (Rams, Clippers, Dodgers) all have deep pockets to invest into the franchise.

On a side note, imagine how much impact drafting a QB like Dak Prescott would make on a franchise in flux, for sale, on the move, etc.? (there's better QB's of course, but anyone could have had him.)

Last edited by Crime Time; 01-16-2017 at 03:27 PM..
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  #39  
Old 01-20-2017, 07:27 AM
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Originally Posted by Chargerfreak View Post
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.
Can't be explained better than that!
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  #40  
Old 01-20-2017, 09:16 AM
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Can't be explained better than that!
mrkmacc21 is promoted to Senior Vice President of Advertising-Carson Empire.

Executive bathroom key and parking designation granted.
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