Two years ago, owners had agreed to a record debt waiver of $2.25 billion for the stadium that will soon become the permanent home of the Los Angeles Rams and Los Angeles Chargers. Since then, the budget has reportedly nearly doubled on what is an incredible digitally-enabled sports entertainment venue platform.
This latest 1% bump is meant to keep construction moving on the way to a July opening. A lack of demand for personal seat licenses, which grant holders the ability to then purchase season tickets, has forced the Rams into asking for the increase in credit. The Chargers and Rams were expected to raise $400 million in seat licenses, yet that number is currently closer to $100 million
Per Sam Farmer of the Los Angeles Times:
“The additional $500 million in stadium financing is believed to be a combination of a private loan to Rams owner Stan Kroenke, and an increased debt limit on the team. Pending approval from fellow owners, Kroenke also would have more time to pay back the loan.
“… The cost of the stadium, which sits on 298 acres in Inglewood, has roughly doubled since the early projections of roughly $2.5 billion, and both the Rams and Chargers have fallen short on anticipated seat-license sales that offset construction costs. What’s more, if the NFL further increases the debt limit, Kroenke can take advantage of lower interest rates.”
Already, the venue has booked some of the largest events in sports and pop culture with WrestleMania 37 in March 2021, Super Bowl LVI in February 2022, the College Football Playoff championship in January 2023 and the Summer Olympics in 2028. It will also serve as the site of college football’s LA Bowl, which will pit Mountain West and Pac-12 programs against each other beginning in 2020.