The L.A. company that wants to build a stadium downtown is selling out.
And if this report is true, it wants $10 billion for the whole shebang. Anschutz Entertainment Group, the locally based conglomerate owned by Denver rich guy Phil Anshutz, runs Staples Center, L.A. Live and the Nokia Theater, owns concert promoter
LiveNation AEG Live (and Goldenvoice of Coachella fame), has a piece of the Lakers and calls the Los Angeles Galaxy soccer team, with David Beckham on board, its own.
It has venues across the globe, including the O2 Arena in London and the Mercedes-Benz Arena in Shanghai. But $10 billion?
At a price that high, even L.A.'s richest people, including multi-billionaire Patrick Shoon-Shiong, who has expressed interest in buying AEG, probably couldn't buy it solo (and Soon-Shiong reportedly has paired up with owners of the Dodgers, Guggenheim Partners, for his expected bid).
The $10 billion figure was reported today by Reuters, which said a 25-page AEG “information memorandum” would go out to potential bidders Monday. Bids, Reuters said, citing sources, were expected in the “high single-digit, low double-digit” billions.
A sports business expert told KPCC 89.3 FM today that it was possible whoever buys the business will break it up and sell the parts.
AEG has said its management would stay on and that the stadium's development would be part of any deal.
The 72,000-seat, $1.5-billion stadium and Convention Center upgrade would put the venue where the West Hall stands, on public property, and seek $300 million in taxpayer-backed loans that AEG has vowed would be repaid.
AEG has been good at getting the city to provide it with value. The L.A. Live/Staples Center complex sits atop a neighborhood that was torn down at the behest of City Hall, and the developments were built with the aid of millions in tax breaks and taxpayer loans.
Glad we could help out a conservative, Republican billionaire. Now, what are the people of Los Angeles getting out of this?