Investors have every right to make money on Inglewood stadium deal

By Vincent Bonsignore

So let me get this straight, private financer propose to build a brand new football stadium Inglewood – presumably to be the new home of the Los Angeles Rams – and are asking no upfront tax money from local residents.

Where do we sign up, right?

But wait, it turns out the financers wrote into the proposal a multi-million dollar pay out to themselves if annual tax revenue to the city from the completed project exceeds $25 million as expected.

Should that happen, the developers, including a company controlled by Rams owner Stan Kroenke, would be entitled to reimbursements for funds they invested in streets, sewers, parks and other projects deemed dedicated to the public. And that pay out could be as much as $100-million dollars.

And now all of a sudden people have some misgivings, even accusing the developers of getting cute with their words while trying to line their pockets.

I have a bit of a problem with that accusation.

Unless something comes forward indicating upfront public money is required, Kroenke and his group have been honest thus far on that aspect.

More importantly, if Kroenke and his group are putting up all the money, why shouldn’t they recoup some of their investment once certain thresholds are met in terms of tax revenues to the city of Inglewood?

That sounds like a win-win for everyone.

If the city makes money, the investor makes more money.

Isn’t that the very definition and goal of investing?

Sounds to me like people are making a big deal out of nothing on this one.