SoFi Stadium Is Paying The Price For Lifting Its Curtain During A Pandemic

SoFi Stadium is nearing its splashy debut, even if the moment isn’t quite right because of COVID-19.

“It couldn’t be coming at a worst time,’’ David Carter said.

Carter, an author of four sports business books, is the executive director and a professor at the University of Southern California Sports Business Institute.

This summer the Los Angeles Rams will christen the $5 billion venue which is the cornerstone of team owner Stan Kroenke’s 298-acre sports and entertainment complex located in Inglewood, Calif.

After a handful of concerts were cancelled because of COVID-19, the Rams will break the seal on SoFi Stadium when they face the New Orleans Saints in a preseason game on Aug. 14.

Originally scheduled to open for the 2019 season, SoFi Stadium was delayed a year because of heavy rains which stalled construction. Now it prepares to hang its shingle in the midst of a pandemic which will likely prevent, or limit, fans from attending games.

That’s a huge disadvantage for Kroenke, according to Carter, as Kroenke tries to recoup his investment on the most expensive sports venue in North America.

“You have to go back and understand that the NFL and Kroenke, rightfully, had a heavy focus on the experience economy,’’ Carter said. “It wasn’t just about going to see the Rams play the Cowboys or a concert to attend, but it was the event-day experience. Now that experience is fundamentally altered across the board.’’

With L.A. County being the epicenter of the coronavirus in California with almost 2,100 deaths recorded through May, Kroenke’s vision of a packed sports palace with 70,000 supporters in seats and high-end customers in suites is most likely a pipe dream.

Even if the Rams, and their tenants, the Chargers, can host contests at SoFi Stadium they could be “ghost games” with no spectators allowed.

Or possibly the crowds are limited to prevent a gathering from becoming a super-spreader event of the virus which has killed nearly 4,ooo Californians.

It’s likely the game-day vibe at SoFi Stadium won’t be like Kroenke envisioned. The impact of COVID-19 will be hard to ignore.

“It affects all the revenue streams coming into the building,’’ Carter said.

In Kroenke’s quest to make SoFi Stadium a hip L.A. spot, it had to possess the bells and whistles to make it unique. But those keen extras, like a 70,000-square-foot, double-sided video board hanging under a translucent roof, can’t be monetized if patrons are parked on their couches.

“Young people are more interested in what the experience is about rather than the actual game,’’ Carter said. “It’s the tailgating before the game and where they can go (on site) after the concert. It’s about where the sports and entertainment fit into their entire experience.

“Think of it in the terms of why do we go out to eat? It’s to see friends and maybe post where we went and tell about the overall experience.

“Now happy hour might be the hook to get you there. Then maybe you see some friends and you stay another hour after happy hour and order more off the menu.

“With sports facilities, it’s mainly those purchases at the bars or the retail stores in and around them that (owners) rely on. If the fans have a good time, they will buy a hat or a T-shirt by arriving early and staying longer.

“Any time an owner can make you stay longer it substantially increases the chances to separate you from your wallet. That is one of their goals.’’

The goalposts continue to move regarding the NFL proceeding with its season as a second wave of COVID-19 could bring everything to a halt.

Because of that cloudy future Kroenke, who’s worth $10 billion according to Forbes, recently received a $500 million advance from the league.

“I think there is an understanding of the uncertainly attached to these revenue streams,’’ Carter said. “I’m not saying they will go away because you will still have money coming in from sponsors and personal-seat licenses and other things.

“But when they look at the disposal income of corporate fans, it may not be a good look for them to have a luxury box with great seats near the 50-yard line and to be on TV just after they furloughed workers — that’s not a good optic.

“And for individuals their disposable income is at risk, too, at least in the near term. So there are overarching concerns about cash flow when opening such an extravagant building in trying times.’’

Try as he may, Kroenke can’t change the dynamics which could compromise SoFi Stadium from being an immediate financial success. Carter said Kroenke is facing the same challenges as other businesses tiptoeing through the pandemic.

“A lot of the decisions are outside or beyond his control and I think that is a great concern,’’ Carter said. “Instead it is government policy and the collective decisions of what is best for the public’s health and safety when gathering in crowds.

“No matter the size of a business, if someone is making unilateral decisions on how to run your business, that is a concern. Kroenke is no different from that mid-sized or larger restaurant down the street.

“It’s just more acute for him because the dollars are bigger. That makes the timing of the stadium’s opening less-than-ideal for him.’’

they can easily unilateral direction how to run their business any time run size business des is beyond your control that kroencke the local restart down the street mid size and large one alas 

more acute of him dollars are bigger and the timing of it is far less that ideal

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i thin has to be great because a lot of it is outside or beyond the control of krpence its gove policy what does public safety collective reel public heath about crowds gathering not suggesting 

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especially for the chargers 

jake what going to be like at social distance at vine had the chargers for the three yeas so it will be no different

its not just football the concert been cancelled so many things used back the level of concern 

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think its both learned short term we had 911 we relied on sport nationalist t flex and get back to baseball and so forth and this time around it really seems to put a real its been shinning a real light on the important of sport in our society and how we rely on it for entreat and content

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that was a great example of that we will see shining example of that again but maybe that 

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