The SoFi Stadium experience: $5 billion facility opens with much fanfare, but no fans
INGLEWOOD, Calif. -- From the north end of SoFi Stadium on Level 8, fans can look out to snow-covered mountains and the famous “Hollywood” sign on Mount Lee.
Downtown Los Angeles and L.A. International Airport are visible from this perch, and even further off into the distance, the Pacific Ocean.
“To me, what is special about this building is it’s a unique design for Southern California that can only be attempted in Southern California,” said Kevin Demoff, Rams chief operating officer and executive vice president of football operations “And it was designed with Angelenos in mind.
“The indoor-outdoor experience. The 22-acre covered patios. The airflow. The landscaping. The hidden canyon. The secret spots. Whether you are a famous Hollywood star or a passionate Rams fan whose been coming for 50 years, you feel like this building was designed for you.”
But fans won’t get witness this breath-taking view, enjoy the unique amenities or watch celebrities entering the facility on the red carpet for the first game on Sunday.
Due to the COVID-19 global pandemic, fans will not be allowed at regular-season games for the Rams or the Los Angeles Chargers until Los Angeles County’s restrictions for reopening are met, and that may not happen until the 2021 season.
The $5 billion, privately financed facility sits on 60 acres, and part of a 300-acre, mixed-use development three times the size of Disneyland that will include 890,000 square feet of retail and 780,00 square feet of office space, as well as 2,500 modern residences, a 300-room hotel and a 25-acre park developed in phases over time.
It's fitting that the Rams host the Dallas Cowboys in the first game to open the stadium, as Cowboys owner Jerry Jones helped owner Stan Kroenke navigate the project through the choppy waters of the NFL relocation process.
Born in Inglewood with about two-thirds of his family still in Los Angeles, Jones’ California roots run deep. The charismatic owner who helped convince owners to approve the Inglewood stadium project believes Rams owner Stan Kroenke’s vision of a sparkling new facility will be an enticement for fans to flock to games – once they can attend.
“I’ve always been such a big proponent of the nation’s entertainment capital and the NFL having a huge presence there,” Jones said. “Stan Kroenke and his commitment is just so impressive. The fact that our game is going to presented in that forum for the whole NFL is just rewarding and above my expectations.”
The sparking new facility was originally scheduled to open last year but fell behind schedule due to flooding on the site after an unusually wet winter during scheduled excavation at the start of the project.
The nearly four-year construction also had the deaths of two construction workers, and 81 workers tested positive for COID-19, according to the Los Angeles Times.
Those hardships and delays, along with no fans in the stands for the upcoming season, have adversely affected the development financially for Kroenke, putting more onus for the developer to recoup his investment from the ancillary development on the site.
“Certainly, this will have a significant financial impact on the team this year,” Demoff said. “Obviously, there’s no way around that -- and that’s no different for us than it is any other NFL team. I think we’ve been pointing to this year for so long that it feels a little bit different, but long term what’s most important is this building delivers the fan experience for years to come and that we fill it up with 70,000 fans, that we fill the 267 suites and make this a building fans want to come to, year in and year out.
“Like everyone else in the world, we’re going to have to adjust to the economics of 2020. But as long as our team, our players, our staff and our fans can be healthy though this year, that’s a really short-term issue. And economics in 2020 certainly take a backseat to health and safety, and making sure we deliver upon the vision that we laid out. And then in 2021 moving forward hopefully we get back to the projected economics that will make this building go.”
Sports business consultant Marc Ganis, who works closely with the NFL on relocation issues, estimated those initial losses due to lost revenue from fan attendance could be in the “ten of millions of dollars, if not approaching nine figures.” However, Ganis believes Kroenke is positioned to absorb those losses and recoup his investment over the long haul.
According to Forbes, the Rams’ franchise valuation after the completion of the stadium is $4 billion, No. 4 in the league and a five percent increase from last year.
“It’s a long-term investment by Stan and his family,” Ganis said. “And if you had to chose one sports team owner to have to go through this, knowing that there is a major decade-long, real estate project associated with it, Stan is the right guy.
“This kind of loss is painful for everyone, not matter who they are if they are not named (Jeff) Bezos, (Warren) Buffet or (Bill) Gates. That’s the just the nature of the beast. It’s that much money. But Stan is stand-up guy financially. He’ll handle it. He’s not going to go crying to anybody about it. And the NFL has, and I expect will continue to help as appropriate.”
