Anaheim Too Costly for Rams? : Pro football: Shaw says it may not be possible to compete in stadium in current economic situation.
John Shaw, executive vice president of the Rams, questioned Thursday whether the team could be competitive in its economic situation with Anaheim Stadium and the Rams Park practice facility.
Said Shaw: “I think the economic disparity between some of the new (NFL) facilities and the existing economic terms in Anaheim are so great in terms of revenue that we’re going to have to make a decision at some time whether the situation here, even if it was modified, would be such that we could ever be competitive.”
The Rams’ lease with the city of Anaheim for the use of the stadium expires in 2015, but an escape clause allows the team to leave if it gives 15 months’ notice and pays off the remaining $30 million owed on bonds issued to expand the stadium when the Rams moved to Anaheim before the 1980 season. The team is also running a risk of being evicted from its practice facility in Anaheim when its lease expires on Dec. 31.
The Anaheim City Council unanimously voted to show support for the Rams at a meeting on Tuesday but didn’t make any offers to keep the team from being lured away by other cities. Council members are awaiting a staff report on the financial benefits of keeping the team in Anaheim and are planning to discuss it at next Tuesday’s meeting.
“I’m not trying to solve the city’s problems,” Shaw said. “I’m just trying to figure out how we will be able to compete in the future for players and as a team in light of the economic changes in the NFL and in other stadia around the league.
“The stadium does not provide the sources of revenue that the new modern stadiums provide. And that’s a major problem. That probably comes down to whether the economics of the facility are antiquated. That’s the larger issue here. We haven’t gone and asked for more concession or parking money.”
City revenue from the Rams has decreased more than $450,000 since 1990. Attendance has dropped more than 14,000 fans per game since 1990.
The Rams pay Anaheim rent of up to $400,000 per year, and the city gets 7.5% of ticket revenue, 20% of luxury box revenue and about half of the parking and concession revenue.
“The question is, can this stadium have modern boxes, premium seating and all of those type of large-revenue issues that are provided in the Joe Robbie- and Georgia Dome-type of stadiums?” Shaw said.
Even if the Rams give notice that they are leaving Anaheim Stadium, they will still need a practice facility for next season.
The Magnolia School District, through the city of Anaheim, notified the Rams recently that it had rejected the team’s offer to double the rent to $240,000 per year for a two-year extension at its Anaheim practice facility, the former Juliette Low Middle School.