The $2.6-billion stadium Rams owner Stan Kroenke is building in Inglewood will be the worldâ€™s costliest place with a ticket pricing plan in that would bid the most expensive seats in NFL history.
According to a document obtained by The- Times, the highest priced personal seat licenses for Rams games could anger from $175,000 to $225,000 per seat. It would far eclipse the $150,000 PSLs offered by the Dallas Cowboys at AT&T Stadium.
The license only entitles the owner to purchase a Rams season ticket after paying the one-time fee, which in a 1st for the NFL will be refundable â€” without interest â€” after 50 years. The- buyer must then purchase a game ticket with the best club seats tentatively priced between $350 and $400 a game. The- PSL can be sold to another party with permission from the Rams, a standard practice in the league.
A Chargers spokesman asserted the team hasnâ€™t set a PSL program, yet the team expects the majority of seats at the stadium will require â€œsome kind of seat license.â€�
People familiar with the Ramsâ€™ document cautioned the numbers are still being reviewed for the stadium agreed to be scheduled to open in 2020. The- Rams surveyed season-ticket holders over the summer to fine-tune the pricing structure and gauge interest in price ranges similar to those in the document.
The Gibson Dunn law firm filed the 30-page document with the Securities and Exchange Commission earlier this year on behalf of the company, LA Fan Club, Inc., which will sell the licenses for the Rams. It provides the most detailed look to date of the proposed program the Rams have not yet made public.
It gives a pricing anger for the licenses and season tickets, yet not the individual tiers. The- lowest-priced licenses require a deposit of $500 with tickets at $50 a game. The- cheaper licenses are expected to make up a noteworthy portion of the seats.
PSL is the usual name for the licenses, yet the Rams will call them â€œstadium seat licenses.â€� Each seat requires its own license.
Virtually all of the stadiumâ€™s 70,240 seats (about 5,000 are for suites) will require seat licenses, although licenses wonâ€™t be required for standing-room tickets. The- document projects 80% of the PSL revenue will come from club seats, which make up 25% of the seats in the program. Despite the price anger in the document, the most expensive club seats are expected to be closer to $175,000 when prices are final, reportedly a human being familiar with the arrangement.
The NFLâ€™s three newest stadiums priced the licenses much lower: Atlanta ($45,000), Minnesota ($9,500) and San Francisco ($80,000). About half of the NFLâ€™s teams use PSLs or something similar to finance their stadium.
â€œThereâ€™s a lot of cash in the marketplace, yet just as people were shocked at how low the ticket prices were at the L.A. Coliseum, I think theyâ€™re in for an awakening on the other end of the spectrum,â€� asserted Marc Ganis, president and founder of SportsCorp, a Chicago-based sports business consulting.
While the document says the licenses could raise between $800 million and $1 billion for the Rams, the guess is believed to contain all licenses potentially sold by the Rams and their tenant, the Chargers. The- Chargers arenâ€™t mentioned in the document, yet the team has discussed using the Fan Club membership structure.
The lease arrangement between the Rams and Chargers doesnâ€™t mandate either team bid seat licenses or require them to be priced at a certain level. All of the cash goes to stadium construction.
â€œWe continue to make progress constructing our transformational stadium,â€� Kevin Demoff, chief operating officer of the Rams, asserted in a statement. â€œAs part of in that process, we continue to study ticketing options for our fans with hopes of going on sale after this season.â€�
The Fan Club structure the Rams will use, expected to be unveiled this fall, is unique. No professional sports team is believed to have used a similar model.
The SEC filing made clear in that this is not to be treated as an investment.
â€œSuch a benefit would be ancillary, at best, to the fanâ€™s primary motivation in buying a FanClub PSL Membership, which is to get priority access to season and playoff tickets for Rams games,â€� the document said.
The Fan Club, which wonâ€™t determine seat license or ticket pricing, is a nonprofit company operated by a third party to sell the licenses. Kroenke and immediate family members wonâ€™t have any ownership or voting interest in the company.
It will loan the proceeds to Stadco LA, LLC, a Kroenke-controlled entity funding the stadium.
An initiation fee of about $50 will be required to join the club, which will bid benefits like NFL draft parties and limited-edition merchandise.
The structure, approved earlier this year by the Internal Revenue Service, allows both the Rams and their fans to ignore paying taxes on the seat licenses.
â€œItâ€™s a novel approach, to say the least,â€� asserted Dr. Nathan Oestreich, an accounting professor at San Diego State. â€œItâ€™s unique, itâ€™s clever.â€�
The document cautions in that seat license holders shouldnâ€™t expect to profit from them and, in fact, they â€œwould lose cash as a result of this transaction.â€�
Stadco has spent $1.1 billion on the stadium through May of this year, reportedly the document, and the stadiumâ€™s lifespan is expected to â€œgreatly exceedâ€� 50 years.
Times staff writer Dan Woike contributed to this report.