There has been a lot of speculation and a lot of dubious claims regarding the financing for Inglewood Stadium (at Hollywood Park). While there is, of course, a stadium set to be completed in time for football season next year, the complex will also house a variety of business offices, attractions, and more. The 300-acre project is still vigorously under construction, but early returns indicate that the stadium should meet the presumed deadline established.
The Chargers made some construction waves earlier in 2018 as negative news surfaced about their troubles selling PSLs (Personal Seat Licenses) for the upcoming season. This source of income is what franchises are increasingly dependent on to finance construction costs, but that income is secondary to partnership and marketing dollars that are, essentially, whatever is agreed between partners. Naming rights are paramount, as evidenced by similar stadiums selling the rights for 10-and-20 year multi-million-dollar deals.
While Qualcomm Stadium changed its name to San Diego County Credit Union Stadium and Stub Hub Center changed its name to Dignity Health Sports Park, those particular naming deals reflected the changing fates of each location (losing NFL teams loses a lot of bargaining leverage).
Naming rights for big-ticket stadiums usually indicate a long commitment, as evidenced by Lincoln Financial making a 21-year commitment to the Eagles’ home in 2003, and then renewing again earlier this year through the 2032 season.
Chargers fans should get used to the name SoFi Stadium, which Stan Kroenke announced as the official naming partner for the stadium today. As reported by VenuesNow:
Social Finance, the private lender known as SoFi that specializes in refinancing student loans, has acquired naming rights for the $5.2 billion NFL stadium under construction in Inglewood, Calif., according to multiple sources.
Terms are believed to be in the range of $20 million a year over 20 years, sources said.
This is on par with the amount paid for MetLife Stadium, which also houses two NFL teams. There were early rumors that the naming rights could skyrocked to over 35-million annually, but I think that the Rams’ owner will still be happy with their $400 million dollar payday.
-Jason “Can’t Escape Student Loans” Michaels