From CNBC: 2024-09-05 15:40:12

In Los Angeles, a $2 billion value gap exists between the Los Angeles Rams and the Los Angeles Chargers. The Rams are valued at $8 billion, while the Chargers rank 26th at $5.83 billion. The discrepancy is primarily due to revenue from SoFi Stadium, with the Rams enjoying 85% of luxury suite and sponsorship revenue.

SoFi Stadium hosted major events, such as Taylor Swift’s sold-out concerts, bringing in significant revenue. Stadium economics play a crucial role in NFL team valuations, with the Rams benefitting from revenue streams that the Chargers do not share. The Rams also retain all revenue from non-NFL events held at the stadium.

The Rams have established themselves as a top revenue generator in the NFL, ranking second in sponsorship revenue last year. Despite the high debt incurred from building SoFi Stadium, the risk has paid off for the Rams, with their value increasing substantially since their relocation to Los Angeles in 2016. The Chargers, on the other hand, have not seen the same success on the field or in value growth.

Despite high relocation fees paid by both teams, their respective values have grown significantly since their moves to Los Angeles. The Rams, considered a growth stock due to their success and revenue, have seen a four-fold increase in value, while the Chargers, akin to a dividend play, have also experienced considerable growth since their relocation.



Read more at CNBC: Los Angeles Rams worth $2 billion more than LA Chargers