- St. officials. Louis claims $1 billion in damages after the Rams moved from St. Louis to Los Angeles in 2016.
- The $790 million settlement came shortly before the trial in January.
- Earlier this month, the NFL and Rams lost their efforts to hear the case elsewhere in Missouri instead of the team’s former home of St. Louis.
The National Football League and Los Angeles Rams owner Stan Kroenke reached an agreement with officials in St. Louis for $790 million, the city announced Wednesday.
The settlement stems from a lawsuit resulting from the Rams’ relocating to Los Angeles in 2016. City, St. Louis and the Regional Convention and Sports Complex sued the NFL and Rams in 2017. They claim the league doesn’t respect itself. resettlement policy and holding good faith negotiations to stop the Rams’ relocated from St. Louis.
“This historic agreement closes a long chapter for our region, securing hundreds of millions of dollars for our communities while avoiding trial and appellate process uncertainty,” the Mayor said. St. Louis Tishaura Jones and county executive Sam Page, said. declare. “The City, County, and STLRSA are still determining how the settlement funds will be distributed.”
The settlement also took place shortly before the January hearing. Earlier this month, the NFL and The Rams have lost their efforts for the case to be heard elsewhere in Missouri instead of the team’s former home, St. Louis.
The defendants in the lawsuit are the owners of the Rams, Kroenke Sports & Entertainment, 31 other professional football teams, and their owners. The lawsuit seeks damages of at least $1 billion.
NS St. Louis Post-Dispatch the first settlement report.
The NFL also risks the financial sensitive documents of NFL owners being made public if the case goes to trial. Judge Christopher McGraugh of St. Louis Circuit, which handled the case, issued a fine of about $44,000 to four NFL owners for failing to file financial documents last October. Another hearing on the matter is also scheduled for December.
St. officials. Louis sought the financial damage they allege they suffered when the Rams moved to Los Angeles. This move caused St. Louis had to take on the debt on the team’s old stadium, which was built with public funds.
Officials accuse the city of losing between $1.85 million and $3.5 million a year in ticket and entertainment tax revenues, another $7.5 million in property taxes and $1.4 million sales tax, totaling more than $100 million in lost revenue annually.
The lawsuit also claims St. Louis also lost his hotel, property, and sales tax revenue after the Rams moved. According to the lawsuit, the impact on the state totals more than $15 million, using data from the Missouri Department of Economic Development.
According to the lawsuit, St. Louis also sought part of the increased valuation related to the Rams’ relocation. That total eclipses $1 billion.
In addition, the NFL has risked getting the case to go viral in early 2022, at the same time as Super Bowl LVI – which will be played out in the Rams’ new home complex, SoFi Stadium.
Therefore, the previous settlement is a “smart move,” sports attorney Irwin Kishner told CNBC Wednesday.
“The fact is, the St. Louis justice system has been very supportive of the homeland,” Kishner said. “Why go through years of litigation, pay millions of dollars in fees, and be uncertain about a lawsuit? It just makes sense so people can focus on better things.”
When asked about the reported figure of more than $700 million, Kishner called the amount “fair” but did not comment further. “We don’t know enough about it,” he said, questioning whether the payment would be paid out over a period of years or upfront.
Patrick Rishe, director of the sports business program at the University of Washington, called the large number of settlements “unprecedented,” especially considering that cases like these often benefit sports federations. and owner.
“If you asked the sports executive or the sports attorney four years ago, ‘What do you think this case will settle for?’ I think most people would say zero,” Rishe said. “So to have the city go away with almost $800 million, it’s not only unprecedented, it’s made its mark on every team and every league.
“Ownership and tournaments will need to be transparent, forthcoming and subject to the rules otherwise this is what is likely to happen,” added Rishe.
https://www.nbcphiladelphia.com/news/business/money-report/nfl-and-rams-reach-more-than-700-million-settlement-in-st-louis-relocation-case-report-says/3058598/ NFL and Rams reach $790 million settlement in St. Louis – NBC10 Philadelphia