DJ Muller
Mr. Reuter
Economics
4/28/16
The Rams have moved back to their home in Los Angeles but they also brought a massive bill for their new stadium. The stadium is said to seat 80 thousand people and be the most expensive stadium ever. The final cost is expected to be 2.6 billion dollars. That's more than a billion more than the Jets Metlife Stadium which was the previous most expensive. The 3.1 million-square-foot multipurpose venue will be the league's largest International architecture giant HKS have been contracted to design the venue and have announced that it will center on a 19-acre transparent canopy, which will cover the entire stadium and parts of the surrounding development. Preliminary stats reveal nine levels featuring 70,250 general seats, approximately 250 suites, and nearly 20,000 club seats and loge boxes.
The previous stadium opened 20 years ago and held 66 thousand people total. This difference in attendance will increase the rams yearly income which in turn will give the Rams more spending money for players. Even Though the city of L.A. is dumping a lot of money on the Rams now this stadium will be more than just a football stadium. The stadium will likely be a new center of the city and host many events out of football season and make money back in no time at all.
Even though the stadium has an immense cost to begin with it’s overall a massive pull factor and will bring in tourist all year round for football and concerts among many other events.
Works Cited
"Los Angeles Rams' Stadium to Be World's Most Expensive." CNN. Cable News Network, n.d. Web. 28 Apr. 2016.
It will be interesting to see if the increased capacity of the Ram's new stadium will improve their financial standing. The Rams will only experience an increase in revenue if there is sufficient demand to maintain ticket prices at their current level with the increased supply provided by their new stadium. Most of the Rams revenue however comes from NFL TV deals or from merchandise sales however, so their new stadium may not have a large impact on their revenue.
ReplyDeleteI am slightly frightened to see if the move will actually help them. It was said in a earlier article that the Rams in St. Louis left the city with financial problems due to the stadium. I, in personal opinion, don't see this move good at all. Considering that the Rams are, well, pretty awful, I don't see the relocation helping them in anyway.
ReplyDeleteThis will also bring a great income to all the businesses around the stadium. It will help many food company's, hotels, and other attractions near L.A due to people coming from all over to see their team play at this nice new stadium. Good facts though! This will also increase jobs in L.A for people that will need to work at the events held at the new stadium. It gives people happiness to see a new stadium and hope for the players to get motivated and do better from this. Good thing For L.A, really like this blog post DJ!
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DeleteI didn't know that the Rams were building the most expensive stadium. I'm sure that many fans are happy that they have their team back, but will that new stadium give the city just more expenses? I would be interested in see what the builders have in mind on how the stadium will look. Hopefully, everyone will get a return on the investment of spending billions. Overall good job on the blog post.
ReplyDeleteNice topic as it is relevant at this time. I will very interesting to see if the Rams move to L.A. will make a difference for the organization. One thing that intrigued me was clear canopy that will be installed. I hope it works and doesn't shatter. I believe that you caould have added more to this, such as talking about the negative impact that is occuring in St. Louis right now due to the move, otherwise this was generally an alright essay.
ReplyDeleteTo me it seems like this move is not good at all considering apparently they have financial problems that need to be sorted out. Plus they kind of suck, so I don't see why what's happening is happening.
ReplyDeleteI would agree that the stadium sounds great and it is going to bring a lot money to the city. But who is going to pay for it. The same thing is happening with the Milwaukee Bucks, and their new arena they are having a tough time agreeing on who should all play for the arena or should it be a statewide tax. Yes, the stadium is going to be great when its built but it just the hard part about who going to pay for it. But good blog post.
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ReplyDeleteThere is no doubt that a stadium this size will bring in a lot of money for LA, and even though the spending is great the amount that will come out of it in the far future will overcome that price and have everyone forgetting about it. It could also help the economy of LA alone as it is a big spending city adding that will increase the revenue.
ReplyDeleteThis move definitely has it's ups and down. First of all the relocation was very risky considering that the Rams weren't doing well in St.Louis so there's no guarantee that they will be able to thrive in Los Angeles. On the other hand as you mentioned this could be a success considering Los Angeles is much more densely populated.
ReplyDeleteSeems like it is a great place to have a stadium. Many people attend los Angeles not only for the football but also for the other attractions there. For instance Los Angeles is home to many different celebrities which can also be good. If people are in town for other reasons with this new stadium this can be a new phenomenon and a new attraction that may be able to create a lot of money. Therefore as you said the more money the stadium makes the more the income they have to give to it's player and overall security and employment areas. I agree with Dakota though, I have never really heard of the Rams being good so one question to consider is if the stadium will really be the best buy for people because if they aren't a decent team who would want to see them?
ReplyDeleteI'd say as long as the events hosted at the stadium makes up for the huge expense--my concern for the construction of the stadium is neutral. However I don't think it's wise to make huge investments if it can't be paid off.
ReplyDeleteThe idea of them is good and bad all at the same time. It's good because then they'll get a bigger stadium which will bring in more people which will bring in more money so they can pay off the massive bill that they had for the stadium. It'll also be able to hold events during the off season which will bring in even more money. The down side of it is the bill itself. The Rams already have a stadium that's a good size already so I don't understand why they want to move to L.A. with a bigger stadium. Yes I get it that it's their home city, but they already have a good enough stadium that does the job. So there are both pros and cons to the Rams moving, but in my opinion they don't need it.
ReplyDeleteI enjoyed reading this, but it could've had more about what we have been learning in economics and not as much about the stadium itself. You did a great job talking about how much money the stadium will bring in and how it will be used as a lot of other things as well and not just a football stadium. Also you did mention how much the stadium costs and how much it seats and all those nice things but after that you shouldve brought up stuff from our units to show that you know how to translate what we are learning in the class to the real world. Otherwise you did a nice job and it was a pretty good essay.
ReplyDeleteThis stadium will bring in a lot of attractions because of the fact of where it is located. L.A is a one of the largest populated cities in America so people are bound to spend their money there. If the Rams actually decide to do half way decent this upcoming football season then that's benefiting the investment even more. Good article and good use of bringing up the pros and cons of having this stadium.
ReplyDeleteOne of the concerns for many people mostly is the cost. The taxes with increase out of many pockets, even for some who do not wish to partake in helping the expense for the stadium. What if the outcome isn't as high as expected after the hassle of making this new 2.6 billion dollar stadium. The economy of Los Angeles is strong though with money floating around constantly so my prediction is that they will be able to keep up with the increased expense.
ReplyDeletePlaces like these always have a lot of people attend it, which makes money for everyone involved, as evidenced in this post and a few others. For me, if it is worth the cost to the city, then it is their choice to do it, as it will not effect me at all.
ReplyDeleteThis is a huge topic to talk about considering it going to be a massive cost to the state being 2.6 Billion dollars. But then you have to take in consideration of the economic impact that the stadium will have. Such an increase in the fans base, development towards the city, job growth, and economic revenue. Yet the price may be higher they will have a larger stadium holding 80,000 fans bringing in more revenue. This stadium would also be perfect for concerts in which more fans would be able to attend. Even tho the price might be a little high it's going leave an amazing impact towards the city.
ReplyDeleteInformational post but I agree that it could have included a bit more from what we learned in economics class. Overall initial price is very high but with any new stadium price is going to be high. Although this one being higher than some of the others, I see that the events that will be hosted by this venue will pay off the initial cost and provide funding to maintain it. I believe that building this new stadium in LA is a good idea because the large and growing population of LA will be satisfied with its capability in hosting entertainment.
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