As previously announced, the Super Bowl was held on Sunday at a state-of-the-art stadium; more precisely, according to the official website, at the SoFi Stadium in Inglewood, California.
In terms of construction costs, it is the most costly stadium in NFL history, costing $5 billion to build. It also serves as a wonderful illustration of why taxpayer-funded facilities for professional sports teams are unneeded and wasteful of resources.
— Department of Defense 🇺🇸 (@DeptofDefense) February 12, 2022
SoFi’s Funding and Ownership
In contrast to the Mercedes-Benz Stadium in Atlanta, which hosted the Super Bowl in 2019, SoFi Stadium was funded privately and controlled by Kroenke Sports & Entertainment.
It hence did not necessitate a $700 million public investment. People desire to purchase NFL clubs in the Los Angeles area because they believe they will make a lot of money.
They’re taking a chance by investing in the hopes it will boost their net worth over time. It is a vastly superior way to pass the bill along to the working class. So how could Kroenke Sports & Entertainment manage it?
One key cost-cutting measure is the sharing of the facility by two teams, which saves money. That would be the Los Angeles Rams, who play their home games at the venue.
It is also home to the Los Angeles Chargers, who use the facility for their home football games.
No NFL market has a sufficient population to sustain two teams, yet sharing a stadium in Los Angeles County is cost-effective. Because the county has a population of more than ten million people, there is adequate room for both teams to operate.
Having more renters available outside of the football season could further reduce costs.
SoFi is also paying $625 million for naming rights to the company’s headquarters over 20 years. That’s a clever way to offset the cost of the project.
In addition, both teams provide personal seat licenses, which allow supporters to pay a fee in exchange for the opportunity to purchase season tickets from either team.
Moreover, the Rams’ ownership group obtained around $900 million in loans from the NFL to assist with the construction of the stadium.
Keep in mind that none of this spending is having a negative impact on the Rams’ ability to compete on the field. This year, they’ll be taking part in the Super Bowl.
On the other hand, the Los Angeles Rams serve as an example of how privately financed stadiums may succeed. In contrast, the St. Louis Rams demonstrate why taxpayer-funded facilities are a farce.
🗣️ "The people of Inglewood didn't have a say in whether the stadium came to their area" pic.twitter.com/JsShAf2YXv
— Off The Ball (@offtheball) February 13, 2022
As a condition of the Rams’ relocation from Los Angeles to St. Louis in 1995, the city agreed to fund the construction of the Trans World Dome (now known as The Dome at America’s Center).
The Rams had a 20-year lease on the facility, which they terminated in 2015. They also left Missouri residents with a $144 million debt because the stadium did not generate enough revenue to cover its costs.
The Rams made a horrible deal with the Saints. On the other hand, Inglewood is not subjected to the same treatment. If they can fund SoFi Stadium, it should be no difficulty for them to support less expensive venues in the future.