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Insurance company pays $700 million - to name a stadium for 30 years

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The Straight Story Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Feb-02-11 08:54 PM
Original message
Insurance company pays $700 million - to name a stadium for 30 years
Farmers Insurance Group agreed to put its name on a proposed stadium designed to lure the National Football League back to Los Angeles.

The 30-year naming deal with Anschutz Entertainment Group, which plans to build a $1 billion downtown stadium, was announced today at a news conference in Los Angeles.

Financial terms werent disclosed. The Los Angeles Times, citing unidentified people familiar with the negotiations, said the deal may be worth $700 million, breaking the record $400 million New York-based Citigroup Inc. is paying for the right to call the New York Mets Major League Baseball stadium Citi Field for 20 years.

This is about jobs, this is about revitalizing the city center, Los Angeles Mayor Antonio Villaraigosa said at the news conference. The idea that this city, the second-largest media market in the United States of America, does not have a football team boggles the mind. With this announcement today, it is clear -- football is coming back to Los Angeles.

http://www.bloomberg.com/news/2011-02-01/los-angeles-ai...
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Tx4obama Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Feb-02-11 08:57 PM
Response to Original message
1. Disgusting!
There should be a law that states that ins companies should have to use 99% of their intake to pay claims.
They shouldn't be ripping off/over charging customers in order to pay out millions in advertising!

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Historic NY Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Feb-02-11 08:58 PM
Response to Original message
2. Don't worry they will charge their policy holders to cover the cost.
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Wickerman Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Feb-02-11 09:23 PM
Response to Reply #2
6. and of course, a good tax team can get the FED to cover most of the cost n/t
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DJ13 Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Feb-02-11 09:00 PM
Response to Original message
3. The joke is on them
Few modern stadiums last 20 years, let alone 30.
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itsrobert Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Feb-02-11 09:26 PM
Response to Reply #3
7. Name them
?
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Brother Buzz Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Feb-02-11 09:50 PM
Response to Reply #3
9. By modern, you mean stadiums appointed with luxury boxes?
Los Angeles Coliseum is 88 years old and holds a ton of people, but it doesn't have the luxury boxes an NFL franchise absolutely needs to turn a profit.

Under the NFL's current revenue sharing agreement, teams must forfeit a large portion of their ticket revenues so that the funds can be redistributed among all the teams, particularly those in smaller markets. However, the luxury boxes, quickly becoming a top source of revenue for the franchises, were exempted from this sharing requirement. Because of this as well as the NFL's blackout rule, there has been a rush in recent years to sacrifice seating capacity in favor of the luxury boxes, and teams have pressed state and local governments for financial assistance to either build new stadiums or renovate older venues. These new stadiums and renovations generally cost hundreds of millions of dollars; the two newest NFL stadiums, Cowboys Stadium and New Meadowlands Stadium, each cost over $1 billion.

The luxury box conundrum is one of the reasons why Los Angeles, which has two older stadiums (the Rose Bowl and the LA Coliseum) that both seat over 90,000 but contain no luxury boxes, still does not have an NFL franchise 16 years after both the Rams and Raiders departed in 1995.
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DJ13 Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Feb-02-11 11:12 PM
Response to Reply #9
11. Look at the King Dome in Seattle for a recent example
The modern stadium is no longer built to be an edifice that lasts for generations because the owners of pro teams no longer pay to build their own stadiums, they get the local governments to pay for most of it.


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virgogal Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Feb-02-11 09:17 PM
Response to Original message
4. That's the way it is today. Disgusting.
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proud2BlibKansan Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Feb-02-11 09:19 PM
Response to Original message
5. Anschutz is another right wing Kansan with more money than he knows what to do with
And he's every bit as evil as the Koch Brothers.
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Omaha Steve Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Feb-02-11 09:33 PM
Response to Original message
8. Citigroup Inc. is paying for the right to name the New York Mets Major League Baseball stadium

Citibank used to be a very low rate card for us. A year ago they took up the percentage by 4 points. I'm so happy my bailout $ stuck it to us! We aren't using it and are paying it off.

http://www.good.is/post/oh-nice-the-citibank-bailout-pa... /

As you may remember, back in 2008 Citigroup got a $45 billion government bailout in two installments. Well, the government just announced it will start selling off its 27 percent stake in Citigroup and guess what? It turned out to be a pretty good investment.

Of that $45 billion, $20 billion was paid back by Citigroup to the Treasury and $25 billion was converted to common stock. That stock is now worth around $33 billion, netting the government an expected $8 billion profit.

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HCE SuiGeneris Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Feb-02-11 09:55 PM
Response to Original message
10. Suckers!
Your asses will be toast within a year or two.


Too bad we're footing the bill.
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