National Football League

Group recommends Chargers pay $300M, NFL $200M for stadium

Updated Mar. 4, 2020 9:19 p.m. ET

foxsports

SAN DIEGO (AP) -- An advisory group appointed by Mayor Kevin Faulconer recommended Monday that the Chargers contribute $300 million toward a new $1.33 billion stadium, with the NFL giving $200 million, the city and county $121 million each and personal seat licenses totaling $120 million.

Under intense pressure from the team and the NFL, the Citizen's Stadium Advisory Group said in its financing plan that there won't be tax increases or increases to the city's general fund, and that the financing plan doesn't rely on development to pay for the stadium, parking or infrastructure.

Other suggested funding sources include the Chargers paying rent of $173 million over 30 years, ticket surcharges totaling $84.7 million -- or $5 a ticket -- and $225 million from the sale of 75 acres of land at the Qualcomm Stadium site.

The Chargers are threatening to leave for the Los Angeles area unless they get a deal to replace aging Qualcomm Stadium.

The advisory group was to release its financing plan at an early afternoon news conference.

The Chargers declined to make chairman Dean Spanos available for comment.

Faulconer is believed to still want the stadium plan approved by voters.

The advisory group expedited its work after the Chargers and their biggest rivals, the Oakland Raiders, announced plans to build a $1.7 billion stadium in the L.A. suburb of Carson if they didn't get new stadiums in their hometowns.

The financing plan cited comments from the Chargers from 2014 that the Spanos family and investment partners would put up roughly $400 million and seek a $200 million loan from the NFL.

Half of the PSLs would help fund the public's share of the stadium while the other half would help the Chargers fund their share.

The advisory group recommended that a joint powers authority be formed between the county and city to oversee development and ownership of the stadium.

It also said the city and county should seek long-term leases with San Diego State and the group that puts on the Holiday and Poinsettia bowls. It suggests annual rent of $1.25 million each from SDSU and the bowl group.

Other recommendations include:

--The city and county should request an opportunity to present the financing plan to the Committee on Los Angeles Opportunities, and NFL executive Eric Grubman, well in advance of the NFL owners meeting in October.

--Negotiations with the team should begin immediately.

--Following the negotiations, the Chargers should launch and fund a citizens' initiative, like the team did this year in Carson, with the goal of gathering enough verified signatures and securing a City Council vote prior to the NFL owners meeting.

The city currently pays approximately $10 million a year to operate Qualcomm Stadium, including $4.8 million in debt service.

The advisory group recommends the city retire the total remaining debt service of $52 million before a new stadium opens. With proper third-party management, the expectation is the new stadium would break even, at a minimum, therefore the city would no longer be required to subsidize the operations of the stadium.

With the Qualcomm Stadium debt paid off, the city would not need to spend millions of dollars a year to retire that obligation. The advisory group recommends that $7 million a year of the city's savings be used to contribute toward financing the new stadium.

The county's stadium sub-committee has assured the advisory group it would partner with the city on financing, which is why CSAG recommends the county also contribute a minimum of $7 million a year, or a lump-sum payment of at least $121 million.

The advisory group estimates the team could make $135 million to $165 million in naming rights over 20 years, plus other revenue totaling $25 million a year.